Tight Labor Market Supports Back-to-Back UK Rate Rises

Tight Labor Market Supports Back-to-Back UK Rate Rises

0836 GMT - A tight labor market should support further back-to-back rate rises in the U.K., says Goldman Sachs in a note following the release of U.K. jobs data. "The March ONS report showed continued strength in the U.K. labor market, with the unemployment rate declining to a record low, growth in employment and a jump in headline wage growth," the bank says. Given the labor market strength, Goldman Sachs continues to expect the Bank of England to raise rates in back-to-back meetings through August, taking the Bank Rate to 1.5%. After that, it expects the BOE to slow the hiking cycle, with the Bank Rate reaching 1.75% in November and 2% in May 2023. ([e-mail])

 
Companies News: 

Vodafone Group FY 2022 Adjusted Earnings Rose on Revenue Growth, Cost Control

Vodafone Group PLC said Tuesday that fiscal 2022 adjusted Ebitda rose on revenue growth and strong cost control.

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U.K. Watchdog Refers LSEG's GBP274M Deal for Quantile to In-Depth Investigation

The U.K. Competition and Markets Authority said Tuesday that it is referring the acquisition of Quantile Group Ltd. by London Stock Exchange Group PLC to an in-depth investigation.

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Imperial Brands 1H Profit Fell on Charges Related to Leaving Russian Market

Imperial Brands PLC on Tuesday reported a fall in pretax profit for the first half due to charges related to its exit from Russia, and raised its dividend payout.

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Engie Upgrades 2022 Guidance on Strong 1Q

Engie SA on Tuesday said that it has upgraded its full-year guidance following a strong performance in the first quarter.

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AdvancedAdvt Launches GBP253.6 Mln Offer for M&C Saatchi

AdvancedAdvT Ltd. on Tuesday launched a 253.6 million-pound ($312.5 million) takeover for advertising company M&C Saatchi PLC.

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S4 Capital Agrees on Media.Monks-TheoremOne Combination to Expand Presence in the US

S4 Capital PLC said Tuesday that it has agreed to a combination between Media.Monks and TheoremOne to expand its presence in the U.S. market.

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KKR Agrees to Acquire ContourGlobal for $2.1 Bln

U.S. private equity firm KKR & Co. said Tuesday that it has agreed to acquire FTSE 250 power generation group ContourGlobal PLC for $2.14 billion.

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Victorian Plumbing 1H 2022 Pretax Profit, Revenue Fall; Backs Guidance

Victorian Plumbing Group PLC said Tuesday that pretax profit fell for the first half of fiscal 2022 after booking higher costs and a fall in revenue, and backed its guidance for the year.

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Britvic Says 1H Pretax Profit Rose on Higher Consumption; to Buy Back Shares

Britvic PLC said Tuesday that its pretax profit for the first half of its fiscal 2022, driven by increased consumption volumes, and that it is planning a share buyback program.

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Shoe Zone Swung to 1H Pretax Profit as Revenue Rose; Reinstates Dividends

Shoe Zone PLC said Tuesday that it swung to a pretax profit for the first half of fiscal 2022 on increased revenue, and reinstated interim dividends, as it continued to recover from the pandemic.

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Angling Direct FY 2022 Pretax Profit, Revenue Rose on Improved Pricing, Buying

Angling Direct PLC said Tuesday that pretax profit and revenue rose for fiscal 2022 after improved buying and pricing due to category management.

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Mears Group CEO to Retire; Results for First Four Months of 2022 Ahead of Views

Mears Group PLC said Tuesday that Chief Executive Officer David Miles will retire and that its current Chief Operating Officer Lucas Critchley will assume the role at a future date.

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Land Securities Swung to FY 2022 Pretax Profit Amid Pandemic Recovery

Land Securities Group PLC said Tuesday that it swung to a pretax profit in fiscal 2022 as it recovered from the hit from the coronavirus pandemic.

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C&C Group Swung to FY 2022 Profit on Strong Revenue as Restrictions Eased

C&C Group PLC on Tuesday reported a swing to pretax profit in fiscal 2022 as performance was boosted by fewer restrictions and cost managing, and said that the new fiscal year has started strongly.

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Fintel Says Year-To-Date Performance Has Been Strong, in Line With Views

Fintel PLC said Tuesday that its performance in the year to date has been strong and in line with expectations.

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AdvancedAdvT Launches GBP253.6 Mln Offer for M&C Saatchi -- Update

AdvancedAdvT Ltd. on Tuesday launched a 253.6 million pound ($312.5 million) takeover for advertising company M&C Saatchi PLC.

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Eckoh Sees FY 2022 Revenue in Line, Profit Ahead After Growth in US Secure Payments

Eckoh PLC said Tuesday that revenue for fiscal 2022 was in line with market expectations and that profit was ahead after strong annualized recurring revenue growth in U.S. Secure Payments and a resilient performance in the U.K.

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Smartspace Software FY 2022 Loss Widened; Expects Strong Growth in FY 2023

Smartspace Software PLC on Tuesday reported a widened loss for the year ended Jan. 31, and said it expects strong growth in fiscal 2023.

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Tritax EuroBox 1H Pretax Profit Rose on Property Gains

Tritax EuroBox PLC said Tuesday that pretax profit for the first half of its fiscal 2022 significantly rose as revenue grew on the back of property value gains.

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Sureserve Group 1H 2022 Pretax Profit Up; Might Be Hurt by Cost Increases

Sureserve Group PLC said Tuesday that pretax profit rose in the first half of fiscal 2022 as revenue increased, and that its business might be hit by general economic headwinds in terms of cost increases.

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Watkin Jones Swung to 1H Pretax Loss After Exceptional Charge

Watkin Jones PLC said Tuesday that it swung to a pretax loss for the first half of fiscal 2022 after it booked an exceptional charge relating to the new Building Safety Act.

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Accrol Says FY 2022 Revenue, Adj Ebitda in Line With Views; Shares Rise

Shares in Accrol Group Holdings PLC rose Tuesday after the company said that revenue, adjusted Ebitda and adjusted pretax profit for fiscal 2022 were in line with market expectations, and that the board has increased confidence in its outlook for fiscal 2023.

 
Market Talk: 

Land Securities FY 2022 Results Show Encouraging Return to Growth

0805 GMT - Land Securities' fiscal 2022 results were encouraging, highlighting a portfolio that is back in growth territory across most of its property sectors and segments after several years of challenges, Goodbody says. The commercial-property developer and investment company's fiscal 2022 was clearly a turning point, with EPRA net tangible assets and EPRA underlying earnings both beating expectations and capital value gains well ahead of expectations, Goodbody analyst Colm Lauder says in a note. "This was an encouraging set of results and reinforces our positive view on the portfolio," the Irish brokerage says. Goodbody reiterates its buy rating and 880 pence target price on the stock. Shares are up 0.7% at 747.2 pence. ([e-mail])

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Land Securities Shares Look Cheap After Beating Views

0747 GMT - Land Securities' fiscal 2022 results were ahead of both market consensus and RBC Capital Markets' expectations, though shares are seen as still being priced at a discount. The commercial-property developer and investment company's management statement appears positive for both operational and investment prospects, and the financing position remains strong despite small deteriorations in key metrics, RBC analysts say in a research note. "We believe there is little rationale for the shares of a well-run, flexible, operational business in a bifurcating market to trade at a discount to net asset value," the Canadian bank says. RBC retains its outperform rating and 950 pence price target on LandSec's stock. Shares are up 0.5% at 745.4 pence. ([e-mail])

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Imperial Brands' 1H Performance Was Robust

0746 GMT - Imperial Brands' first-half EBIT performance was solid, given the margin pressure that companies are facing, RBC Capital Markets' analyst James Edwardes Jones says. Adjusted operating profit rose 2.9%, an improvement on the 2% previously guided in its last update, he notes. Next-generation products such as heating tobacco and vapor products shouldn't be priced into assessments of the company as the sector is still a minor part of the FTSE 100 tobacco group's portfolio. The Canadian bank has an outperform rating on the stock and a price target of 2,000 pence. Shares are up 5.3% at 1,804.0 pence. ([e-mail])

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Vodafone Results Largely the Same, But Newest Investor Should Be Supportive

0741 GMT - Vodafone Group's fiscal 2023 could get interesting after E& took a 9.8% stake in the U.K. telecom, Freetrade's senior communications specialist Shiv Talwar says in a note. Full-year results could be summarized as mostly the same with a tiny bit more profit, Talwar says, adding that CEO Nick Read has been longing for an ally to help fight ever-noisier activist investors, and newest shareholder E& could be just that. E& is conveniently run by an ex and long-time Vodafone employee and it is crucially taking a supportive role, for now, Talwar adds. This takes the immediate heat off Read, but for any share-price recovery and genuine improvement, Read will likely have to do something soon, Talwar says. Shares trade down 1.5% at 118.32 pence. ([e-mail])

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(END) Dow Jones Newswires

05-17-22 0452ET