UK Banks' Net Interest Margins, Deposit Flows, Returns Seen in Focus at 1Q
0926 GMT - Focus at U.K. banks' 1Q results will be on net interest margins (NIM) and deposit flows, Citi says in a note, adding that it expects a double-digit all-in capital return yield in 2023 from all banks. "While we do not expect any major earnings surprises on 1Q23 numbers, we do expect FY23 outlook commentary to reassure on NIM and cost of risk," analysts say. NIM is seen stable to up on quarter, reflecting the benefit of 4Q rate hikes, partly offset by acute mortgage margin compression. Deposit flows should prove more resilient than in 4Q, they say. Citi has a buy rating on Lloyds, Natwest, Barclays, Virgin Money UK and HSBC, and ranks them by preference in that order, with neutral-rated Standard Chartered last. (elena.vardon@wsj.com)
Companies News:
Network International Could Recommend Consortium Offer Proposal of 387 Pence a Share
Network International Holdings PLC said Monday that it has received a 387 pence-a-share takeover proposal from Capital Partners Ltd. and Francisco Partners Funds that it would be minded to recommend to shareholders if a formal offer was made.
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S4 Capital Executive Chairman Martin Sorrell to Have Preventative Medical Treatment Following Tumor
S4 Capital PLC said Monday that Executive Chairman Martin Sorrell will have preventative medical treatment over the coming months, but that he should be able to work as normal for most of that time.
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PageGroup 1Q Gross Profit Rose on EMEA Performance
PageGroup PLC said Monday that gross profit in the first quarter of 2023 rose driven by growth in its Europe, Middle East and Africa market, and it expects full-year operating profit to meet market expectations.
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Quiz FY 2023 Profit Rose on Higher Demand, Warns of Increasing Headwinds Ahead
Quiz PLC said Monday that it expects to report that pretax profit for fiscal 2023 rose on the back of higher consumer demand, but warned of increasing headwinds in the coming year.
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Ashmore Assets Under Management Rose Slightly in 3Q
Ashmore Group PLC on Monday said that its assets under management rose 1% over the third quarter of fiscal 2023.
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QinetiQ Sees FY 2023 Beating Guidance, Market Views
QinetiQ Group PLC said Monday that it expects fiscal 2023 results to exceed both previous guidance and market consensus expectations.
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Nuformix Raises GBP70,000 in Discount Share Subscription
Nuformix PLC said Monday that it has raised 70,000 pounds ($86,905) through a discounted share subscription with a single investor, to advance its NXP002 program.
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Cerillion Books Record 1H Revenue, Earnings on Strong Demand
Cerillion PLC said Monday that its performance in the first half of fiscal 2023 was strong, with new records for revenue and adjusted Ebitda on strong demand.
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Cordel 3Q Ebitda Loss Narrowed; Confident on FY 2024 Growth
Cordel Group PLC on Monday posted narrower core earnings for the third quarter of fiscal 2023 as its revenue rose while costs declined and said its growing sales pipeline gives it confidence for growth in fiscal 2024.
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Deepverge's Reported 2022 Revenue Inflated Due to Accounting Error
Deepverge PLC said Monday its issued revenue figure for 2022 was inflated due to an accounting error.
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Block Energy 1Q Revenue Fell on Lower Oil Sales, Prices -- Energy Comment
Block Energy PLC on Monday reported a rise in first quarter production compared with the previous quarter although revenue fell on lower oil sales and prices. Here is what the Georgia-focused energy company had to say:
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Renold Sees FY 2023 Profit, Margin Materially Ahead of Views
Renold PLC on Monday said it expects to report that its underlying trading profit and margin for fiscal 2023 was materially ahead of market views as its strong performance momentum continued into its fourth quarter.
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Thor Explorations 1Q Nigeria Mine Production Slips; Backs 2023 Guidance
Thor Explorations Ltd. said Monday that first-quarter production at its Segilola Gold mine in Nigeria slipped on quarter, and backed its 2023 production guidance.
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Intercede Sees FY 2023 Profit Improvement on Revenue Beat, Cost Control
Intercede Group PLC said Monday that it expects to report that fiscal 2023 profit rose on the back of increased revenue and cost control.
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SysGroup FY 2023 Revenue Increased on Organic Growth, Acquisitions
SysGroup PLC said Monday that revenue rose in fiscal 2023 on organic growth and acquisitions.
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Supreme Sees FY 2023, 2024 Ahead of Market Views
Supreme PLC said Monday that performance for fiscal 2023 is anticipated to beat market expectations on the back of both organic growth and acquisitions.
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Ebiquity Appoints Julia Hubbard as CFO
Ebiquity PLC said Monday that it has appointed Julia Hubbard as chief financial officer with effect on 28 April.
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Griffin Mining 1Q Production Rose on Quarter
Griffin Mining Ltd. on Monday said production hit a record for any first-quarter since the commissioning of the Caijiaying mine in China in 2005.
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Diaceutics 2022 Pretax Profit Rose on Growing Demand
Diaceutics PLC said Monday that pretax profit rose 22% in 2022 partly due to a rise in demand, as the company continues to shift toward a platform-based subscription model.
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Access Intelligence FY 2022 Pretax Loss Narrowed as Revenue Rose
Access Intelligence PLC said Monday that its pretax loss narrowed and revenue jumped in fiscal 2022 following the integration of Isentia.
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Surface Transforms Shares Rise After Seeing Return to Profit in 2Q
Surface Transforms PLC shares rose Monday after it said it should return to profitability in the second quarter of 2023, though its 2022 pretax loss widened on higher costs despite more-than-doubled revenue.
Market Talk:
John Wood Gains After Pledging to Open Books to Apollo
1046 GMT - John Wood Group jumps 7% after the oil-industry engineer said it had decided to see if Apollo Management could make a firm takeover offer following the private-equity firm's 240 pence-per-share proposal earlier this month. Wood indicates there could be merit in the approach and is opening up its books so Apollo can undertake proper due diligence, AJ Bell says. "Everything is for sale at the right price and given the uncertain economic outlook, it seems boards are minded to support takeovers as long as unrealistically low offers are not messing shareholders about," Bell's Russ Mould writes. "That situation might be a lot different in a stronger economic environment." (philip.waller@wsj.com)
UK 10Y-30Y Gilt Curve Expected to Steepen on Increased Long Gilt Supply
1044 GMT - The U.K. 10-year versus 30-year gilt-yield curve is expected to steepen in the coming weeks as the supply of long-dated gilts rises, say RBC Capital Markets analysts in a note. "The recent sharp 10-year vs 30-year gilt curve flattening was predominantly driven by an absence of gilt supply," they say. According to RBC, the 10/30-year gilt curve typically steepens 3 days ahead of supply of gilts with a maturity of over 20 years. "We have a strong conviction on the U.K. 10-years and 30-years curve tactically steepening over the coming weeks and particularly like the expression as a box trade versus the U.S. 10-year and 30-year curve," they say. (miriam.mukuru@wsj.com)
OSB Group's Valuation Looks Unsustainably Cheap
1020 GMT - OSB Group looks sustainably strong but unsustainably cheap given the specialist lending and retail savings group generates a sector-leading return on tangible equity of more than 20%, says Berenberg in a note. "The sustainability of these returns is underpinned by structurally growing and cyclically-resilient demand for its lending, as well as its significant pricing power and strong asset quality," says analyst Peter Richardson. The company is materially undervalued, Richardson says, as Berenberg raises its target price to 800 pence from 750 pence--implying a 65% upside--he adds. The German brokerage rates the stock buy. Shares rise 1.7% at 489.2 pence. (elena.vardon@wsj.com)
International Distribution Services Shares Rise Following Agreement With Union
0956 GMT - Shares in Royal Mail parent company International Distribution Services have rallied after a deal was reached with the Communication Workers Union over the weekend on wages and employment terms, Interactive Investor's head of investment Victoria Scholar says in a note. "The agreement marks an end to the period of heightened uncertainty for the group which has been grappling with industrial action including a series of nationwide strikes involving over 110,000 postal staff last year," she says. Furthermore, if U.K. inflationary pressures ease, it will support real-terms wage growth for workers, helping to alleviate the sense of discontent over pay, she adds. Shares trade up 4.8% at 242.60 pence. (kyle.morris@dowjones.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
04-17-23 0712ET
