UK Economic Growth Set to Halve in 2022, Study Suggests

UK Economic Growth Set to Halve in 2022, Study Suggests

1121 GMT - U.K. economic growth is set to halve this year as the effects of coronavirus, the U.K.'s EU exit and the war in Ukraine weigh, a study suggests. The British Chambers of Commerce has downgraded its expectations for U.K. GDP growth in 2022 to 3.6%, less than half last year's 7.5%. "The U.K. economy is forecast to run out of steam in the coming months as the suffocating effect of rising inflation, supply-chain disruption and higher taxes weaken key U.K. output drivers, including consumer spending and business investment," BCC Head of Economics Suren Thiru says. "Our latest outlook suggests a legacy of Covid and Brexit is an increasingly unbalanced economy, with a growing reliance on household spending to drive growth," he says. ([e-mail])

 
Companies News: 

D4t4 Solutions Extends Share Buyback Program by Three Months

D4t4 Solutions PLC said Friday that its board has decided to extend its share buyback program for a further three months.

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Hammerson 2021 Loss Narrowed as Adjusted Earnings Rose

Hammerson PLC on Friday reported a narrowed loss for 2021 as its adjusted earnings more than doubled.

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Ten Lifestyle Expects FY 2022 Adjusted Ebitda to Be Below Expectations

Ten Lifestyle Group PLC said Friday that it expects adjusted Ebitda for the fiscal 2022 to be below expectations, but revenue to be in line with views and that the impact of Russia and Ukraine conflict on its business is limited.

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Malvern International Reaches Deal on Restructuring of Debt

Malvern International PLC said Friday that it has successfully negotiated the restructuring of its 2.6 million-pound ($3.5 million) debt facility.

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Malvern International Warns of Lower Full-Year Revenue on 2H Hit

Malvern International PLC said Friday that its performance in the second half of 2021 was hit by international traveling restrictions, with revenue in the period and the year expected to be lower than in the first half and 2020.

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Verici Dx Plans GBP10 Mln Fund Raising for Strategic Development

Verici Dx PLC said Friday that it is planning to raise around 10 million pounds ($13.3 million) via a share placing and subscription, and will use the money towards its strategic development plan over the short term. The developer of clinical diagnostics for organ transplant said that it will be issuing at least 28.6 million new ordinary shares at 35 pence each via a bookbuild process. The price is a 6.7% discount to Thursday's closing price of 37.5 pence.

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Chill Brands Says 2022 Revenue to Be Hurt by Supply Chain Delays, Seeks for US Partner

Chill Brands Group PLC said Friday that it expects revenue for fiscal 2022 to be lower due to supply chain delays, and that is looking for a partner in the U.S. for manufacturing its products.

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Morgan Advanced Materials Swung to 2021 Pretax Profit, Sees 2022 Revenue Growth of 4%-7%

Morgan Advanced Materials PLC said Friday that it swung to pretax profit in 2021 driven by a recovery on the market, increased its dividend payout, and said it expects organic revenue growth this year.

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Borders & Southern Seeks $1.8 Mln Equity Raise to Develop Gas Discovery

Borders & Southern Petroleum PLC said Friday that it intends to conduct a fundraising of up to $1.8 million to appraise and develop its Darwin gas and condensate discovery in the Falkland Islands.

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Supply@Me Nonexecutive Chairman James Coyle Resigns; Shares Fall

Shares in Supply@Me Capital PLC fell on Friday after the company said that Nonexecutive Chairman James Coyle has resigned with immediate effect and is leaving the company for personal reasons.

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FBD Holdings 2021 Pretax Profit Soared, Declares Dividend

FBD Holdings PLC said Friday that pretax profit for 2021 soared on lower claims and declared a dividend payout.

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UK Watchdog Could Clear CVS Group's Acquisition of The Vet, Considering Undertakings

The U.K. Competition and Markets Authority said Friday that it could accept undertakings provided by CVS Group PLC to address its concerns over the company's acquisition of The Vet.

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Royal London Mutual Insurance 2021 Pretax Profit Rose, Assets Under Management Reached New High

Royal London Mutual Insurance Society Ltd. on Friday reported an increase in pretax profit and assets under management for 2021.

 
Market Talk: 

Rentokil Initial's Low Share Price Seen As a Buying Opportunity

1125 GMT - Rentokil Initial's margins should improve in 2022, benefiting from a recovery in its core business, lesser M&A expenses and better pricing, RBC Capital Markets says. The Canadian bank sees the acquisition of Terminix Global Holdings Inc. as likely to happen and a significant accretion if the deal completes. RBC says the current share price fall can be seen as a good buying opportunity as it increases 2022 earnings-per-share forecast by 2%. RBC has an outperform rating and a price target of 645.0 pence. Shares are down 2.2% at 486.9 pence. ([e-mail])

Fresnillo Results in Focus as Silver Prices Rise

1124 GMT - The silver price has increased in recent weeks as investors seek out haven assets and a place to hide in the wake of the Russian invasion of Ukraine, making the timing of Fresnillo's 2021 results particularly interesting, AJ Bell says. Fresnillo operates in Mexico and is the world's biggest silver miner. Analysts expect it to report a 11% Ebitda rise for 2021, to $1.3 billion, which implies a 15% year-on-year drop for the second half, AJ Bell says. Despite the recent recovery in precious metals prices, Fresnillo's shares are down 20% year-to-date as a result of disappointing operational performance. The group will report earnings on Tuesday. ([e-mail])

Sterling May Be Unaffected if BOE Turns More Cautious

1035 GMT - The Bank of England might take a more cautious approach to raising interest rates in light of the Russia-Ukraine conflict but that's unlikely to have much impact on sterling, Commerzbank says. The market has already lowered its rate-rise bets for the BOE's next meeting on March 17, with a smaller increase of 25 basis points expected, Commerzbank currency analyst You-Na Park-Heger says in a note. "Sterling might maintain the upper hand against EUR as doubts about the European Central Bank hiking interest rates this year seem to be intensifying on the market," she says. EUR/GBP falls 0.1% to 0.8277 after hitting a five-year-low of 0.8260 earlier, according to FactSet, but GBP/USD drops 0.3% to 1.3313. ([e-mail])

BOE Rate-Rise Bets Shield Pound From Russia-Ukraine Conflict

1000 GMT - The pound is showing better resilience to the Ukraine war compared to other European currencies as the Bank of England is still expected to raise interest rates further this year, ING says. "The market continues to price in five 25 basis points rate hikes by the Bank of England in 2022, which has prevented the kind of re-pricing seen in EUR markets," ING analysts say. "A decisive break below 1.1000 in EUR/USD could favor another drop in EUR/GBP, which could explore the 0.8200-0.8250 area in the coming days." EUR/GBP drops 0.1% to 0.8281 after reaching a five-year low of 0.8260 earlier. EUR/USD falls 0.4% to 1.1021, having earlier hit a 21-month low of 1.1008, according to FactSet. ([e-mail])

Investors Buy UK 10Y Gilts Again

0948 GMT - The price of U.K. 10-year government bonds rises in early trading pushing yields lower, Tradeweb data show. Yet yields remain significantly lower than before Russia began the invasion of Ukraine on Feb. 24. "Rates markets have thus far been able to maintain the pullback from Tuesday's huge rally, and in turn are more coherently pricing the current central bank outlook," Mizuho analysts say. The 10-year gilt yield trades last at 1.250%, down from Thursday's close at 1.317%. It traded at 1.469% the day before Russia's military assault was launched. ([e-mail])

Boohoo's Growth Seen to Slow in 4Q Amid Continuing Challenging Market

0921 GMT - Boohoo Group's revenue growth is expected to slow in the fourth quarter of fiscal 2022 against a challenging backdrop, Jefferies says. The London-listed online fashion retailer's traffic, app and search data suggests it has seen a marginal step-back in momentum since the third quarter, Jefferies says. "We would view this as consistent with our estimates that revenue growth will slow from the 10% reported in the third quarter to around 5% in the fourth quarter," the U.S. bank says. However, Jefferies also says that the pressures facing Boohoo are almost entirely transitory, rather than structural, in nature. Jefferies has a buy recommendation on the stock and a target price of 165.00 pence. Shares are down 3.7% at 71.54 pence. ([e-mail]; @sabelaojeaguix)

Hammerson's 2021 Financial Performance Seems Below Expectations

0920 GMT - Hammerson's financial results for 2021 appear to be a bit below forecasts, although they are harder to judge against a consensus that seems somewhat out of date, RBC Capital Markets says. The operational performance of the real estate group appears to continue to strengthen and is a key focus of management's outlook, RBC says. The loan-to-value ratio has come down, reducing risk, but it remains relatively high, the bank adds. Shares fall 0.9% after the earnings release. "We believe Hammerson's transition to more of a mixed-use landlord is likely to be slow and initially painful," RBC warns. ([e-mail])

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(END) Dow Jones Newswires

03-04-22 0646ET