UK Economy Seen Entering Recession in 4Q, 1.0% GDP Contraction Expected in 2023
0819 GMT - Fitch Ratings has lowered its U.K. GDP forecast for 2023 after extreme volatility in the country's financial markets and the prospect of sharply higher interest rates. The rating agency now expects U.K. GDP to decline by 1% in 2023 compared with a 0.2% drop forecast in September. UK government bonds and the pound sold off sharply after the mini-budget on Sept. 23. "Rising funding costs, tighter financing conditions, including for mortgage borrowers, and increased uncertainty will outweigh the impact of looser fiscal policy in 2023," Fitch's chief economist Brian Coulton says in a note. Fitch sees the economy entering recession from the fourth quarter.
Companies News:
Hays 1Q Net Fees Rose on Growth in All Major Markets
Hays PLC said Thursday that its net fees grew 19% in the first quarter of the fiscal year, which ended on Sept. 30.
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Entain 3Q Net Gambling Revenue Rose; Backs Full-Year View
Entain PLC said Thursday that its net gambling revenue increased 2% in the third quarter, and it reaffirmed full-year earnings and revenue expectations.
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easyJet Sees Narrowed FY 2022 Pretax Loss After Strong 4Q
easyJet PLC said Thursday that its headline pretax loss for the year ended Sept. 30 is expected to be between 170 million and 190 million pounds ($188.7 million-$210.9 million) after fourth-quarter revenue more-than doubled.
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WANdisco Sees 2022 Bookings Ahead of Views as Commercial Momentum Accelerates
WANdisco PLC said Thursday that bookings for the third quarter reached a record high and that it expects bookings for the full year to be meaningfully ahead of market consensus.
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Rank Group 1Q Net Gaming Revenue Rose; Expects Pressure on Consumer Spending
Rank Group PLC said Thursday that like-for-like net gaming revenue, or NGR, in the first quarter saw a small rise, though it expects further pressure on consumer spend this year.
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Treatt to Report FY 2022 Revenue Rise on Growth Across Most Categories
Treatt PLC said Thursday that it expects to report a 13% rise in revenue for fiscal 2022 due to broad-based revenue growth across most categories, and that tea sales declined in the period.
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Zotefoams 3Q Sales Rose; Sees 2022 Revenue, Adjusted Profit Increase
Zotefoams PLC said Thursday that sales for the third quarter reached a record high, and that it expects full-year 2022 revenue to rise around 24% on year, and to beat market profit views.
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Smart Metering Systems CFO to Step Down
Smart Metering Systems PLC said Thursday that Chief Financial Officer Gavin Urwin will step down on Dec. 1 to take up another opportunity.
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DiscoverIE 1H Sales Rose, Sees FY 2023 Earnings in Line With Views
DiscoverIE Group PLC said Thursday that sales for the first half of fiscal 2023 rose, and that it is on track to deliver full-year underlying earnings in line with the board's expectations, driven by a robust order book.
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OnTheMarket 1H Pretax Profit Rose; Confident in Full-year Views
OnTheMarket PLC said Thursday that pretax profit rose for the first half of fiscal 2023, and said it was confident in meeting full-year revenue and adjusted operating profit expectations.
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Norcros 1H Like-For-Like UK Revenue Fell But Overall 1H Revenue Rose
Norcros PLC said Thursday that like-for-like revenue in its U.K. business fell 3% in the first half of fiscal 2023 but was 14% higher than in 2019, and that revenue for the period rose on the back of a robust performance.
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Oxford Instruments Sees Strong 1H Revenue, Adjusted Operating Profit Growth
Oxford Instruments PLC said Thursday that it expects to report strong revenue and adjusted operating profit growth for the first half of fiscal 2023, supported by a currency tailwind, and that it expects an improved performance in the second half.
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Sabre Insurance Backs 2022 Views Amid Resilience Across Divisions
Sabre Insurance Group PLC said Thursday that it has reiterated the guidance for the full year, as the company focuses on margin over volumes to cover elevated levels of inflation.
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Brooks Macdonald 1Q Funds Under Management Fell Slightly Due to Volatile Backdrop
Brooks Macdonald Group PLC on Thursday reported a fall in funds under management at the end of the first quarter of fiscal 2023, driven by a further decline in global markets.
Market Talk:
EasyJet's Recovery Still Has Some Way to Go
0908 GMT - While easyJet's load factors for the first quarter of fiscal 2023 are expected to be ahead of 2019, its passenger numbers for the same period are seen at just 83% of 2019's levels, which signals that there is still some recovery left to go, eToro analyst Adam Vettese says in a note. Currency fluctuations and third-quarter disruptions to the travel industry mean the low cost carrier's full-year financials are a disappointment, and that even if losses relating to those factors are stripped out, it would still be lossmaking, or breaking even at best, he says. "While we expect households to curtail spending on holidays in the face of the cost-of-living crisis, budget airlines such as easyJet should be less affected over the coming months than their more premium, long-haul counterparts," Vettese says. (anthony.orunagoriainoff@dowjones.com)
Entain Gains as 3Q Gaming Revenue Rises; 4Q Bodes Well
0850 GMT - Shares in Entain are among the biggest FTSE 100 risers, up 2% after the owner of Ladbrokes and Coral reported higher third-quarter net gaming revenue and reaffirmed full-year earnings and revenue expectations. Brokerage Davy says trading in 3Q was broadly in line with its expectations, with group net gaming revenue up 2% and flat on a constant currency basis. "Given there were a number of headwinds facing the group in 3Q, we expect the market to be reassured on calendar-year estimates as the group looks towards what should be a strong 4Q," Davy analysts say in a note. (philip.waller@wsj.com)
Sterling Likely to Remain Volatile Amid UK Fiscal Worries
0822 GMT - Sterling is likely to remain volatile amid market concerns over the viability of the U.K. government's fiscal plans, UBS Global Wealth Management says. GBP/USD looks set to trade in a range of 1.00-1.10 in coming months, UBS analysts say in a note. "Concerns over financial stability in the U.K. remain a drag on sterling," they say. These worries are also feeding into broader risk aversion, which is positive for the dollar given its safe-haven status, they say. GBP/USD falls 0.2% to 1.1075 and EUR/GBP rises 0.3% to 0.8762. (renae.dyer@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
10-13-22 0528ET
