UK Near-Term Economic Outlook Seen Clouded

UK Near-Term Economic Outlook Seen Clouded Amid Uncertain BOE Policy

1103 GMT - The better-than-expected performance of the U.K. economy in November adds to evidence of a modest contraction rather than a severe shock, Berenberg economists say in a note. However, the near-term economic outlook remains clouded, they say. "Although the shock from sky-high energy prices seems to be less bad than feared, the lagged impact of the significant tightening of financial conditions through 2H 2022 may prove to be worse than expected," Berenberg says. The flipside of a less severe winter downturn is that the Bank of England may judge that more interest-rate increases will be necessary to return inflation back to target, the bank says. "Policymakers are nervous that strong wage growth... will keep inflation elevated even after the energy-price shock fades." ([e-mail])

 
Companies News: 

Global Ports Holding Reviewing Capital, Financing Structure

Global Ports Holding PLC said Friday that is reviewing the company's capital and financing structure in light of the "significant and exciting opportunities in its cruise business."

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Premier Miton Group Assets Under Management Rose in 1Q

Premier Miton Group PLC said Friday that its assets under management rose in the first quarter of fiscal 2023.

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Taylor Wimpey 2022 Operating Profit Met Views but Sales Rate Fell

Taylor Wimpey PLC said Friday that its 2022 performance met its expectations with higher operating profit, despite lower completions and a lower sales rate on-year.

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Appreciate Group 3Q Revenue Rose, Outlook Remains In Line With Its Views

Appreciate Group PLC on Friday said its third-quarter revenue reflected normal seasonality trends and that its outlook remains aligned with its expectations.

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Card Factory Appoints Matthias Seeger as CFO

Card Factory PLC said Friday that it has appointed Matthias Seeger as chief financial officer with effect expected from May 22.

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888 Holdings 2022 Revenue, Earnings Were In Line; CFO to Leave

888 Holdings PLC said Friday that 2022 revenue and adjusted earnings before interest, taxes, depreciation and amortization were in line with expectations and that Chief Financial Officer and Executive Director Yariv Dafna has agreed to step down.

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M.J. Gleeson 1H Homes Sold Slipped 4%, Order Book Fell

M.J. Gleeson PLC said Friday that the number of homes it sold slipped slightly on year in the first half of fiscal 2023 though selling prices remained stable, and its order book fell.

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DFS Furniture 2Q Order Intake Improved; Backs FY 2023 Midpoint Profit Forecast

DFS Furniture PLC said Friday that order intake for the second quarter of the fiscal year rose from the same period a year earlier, but was still down for the first half overall, and backed its midpoint adjusted pretax profit guidance.

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Gulf Marine Services Says 2022 Guidance May Be Adjusted After Client Goes Bankrupt

Gulf Marine Services PLC on Friday said it may need to adjust its 2022 guidance after a client owing it 4 million euros ($4.3 million) for a contract has filed for bankruptcy.

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Alphawave IP 4Q Performance Significantly Improved on Year

Alphawave IP Group PLC said Friday that it booked significantly improved performance in the fourth quarter of 2022, with strong design win momentum and an expanded customer base.

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Wincanton Trades in Line Through 3Q

Wincanton PLC said Friday that it continued to trade in line with expectations in its third quarter, with year-to-date revenue growth of 5.5%.

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Dialight Sees Lower 2022 Core Profit After Weak December

Dialight PLC on Friday lowered its core profit guidance for the year after a weaker-than-expected December revenue.

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Belluscura Sees 2022 Loss in Line With Market Views

Belluscura PLC said Friday that it expects to report an Ebitda loss for 2022 in line with market expectations.

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Celadon Pharmaceuticals CFO To Join Board On Jan. 17

Celadon Pharmaceuticals PLC on Friday said that Jonathan Turner will formally join the group and the board as chief financial officer on Jan. 17.

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Bens Creek Agrees to Take on Second Highwall Miner Unit From Mega Highwall

Bens Creek Group PLC said Friday that it has amended an agreement with the highwall mining contractor Mega Highwall Mining LLC, to confirm the provision and delivery of a second highwall miner unit by the end of January.

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Revolution Beauty Accounts Probe Finds Serious Issues, Affecting FY 2022 Results

Revolution Beauty Group PLC said Friday that an independent investigation into its fiscal 2022 accounts has identified a number of serious issues, which it expects to materially affect financial results.

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Applied Graphene Says Talks Over Sale of Business, Main Operating Subsidiary Continue

Applied Graphene Materials PLC said Friday that discussions with various parties for either the sale of the group's business or of the shares in the company's main operating subsidiary continue.

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ValiRx Targets Up to GBP1.5 Mln via Discounted Placing, Broker Offer

ValiRx PLC said Friday that it seeks to raise up to 1.5 million pounds ($1.8 million) via a discounted share placing and broker offer, and that proceeds will be used to establish a new internal research facility.

 
Market Talk: 

ITV Streaming Platform Needs Further Momentum After World Cup Boost

1109 GMT - ITV's performance report for its new ITVX streaming platform sounds impressive, but numbers were boosted by the winter FIFA World Cup and the company can't really afford for the venture to fail, AJ Bell investment director Russ Mould says in a note. The U.K.-listed broadcaster reported a 55% increase in streaming hours in the first month and a 65% increase in online users, and numbers would have been further boosted by viewers spotting other things to view while watching soccer games. "ITV's challenge is to get those viewers to stick around. It points to good growth in January but it will need more than one strong month to overcome market skepticism about the ITVX venture and the significant content costs attached to it," Mould says. ([e-mail])

Premier Miton's Higher Assets Under Management to Support Dividends

1056 GMT - Premier Miton Group's assets under management performance is supportive for its dividend outlook, Peel Hunt says in a note after the asset manager reported a 5% rise in 1Q AUM. The brokerage predicts a 10 pence per share payout for the fiscal year. "We consider that if momentum remains positive this will encourage management not to cut the dividend and note the yield of 8.6% is highly attractive," it says. Peel Hunt sees significant upside for the stock which should benefit from this momentum. Shares are up 1.7% at 118.5 pence. ([e-mail])

Dialight's Shortfall Prompts Downgrades, Peel Hunt Says

1032 GMT - Dialight's tough end of the year has disappointed, Peel Hunt says in a note, cutting its rating to hold from buy. The brokerage lowers its estimates to account for the lighting company's guidance of at least GBP5 million in full-year underlying operating profit--compared with the GBP8 million expected by Peel Hunt--as well as continuing supply-chain issues and likely lower revenue growth, it says. "If activity recovers more quickly than we now assume and positive earnings momentum returns, then both the target PE and EPS would likely move back up," says analyst Andrew Shepherd-Barron. Peel Hunt lowers its target price to 170 pence from 360 pence. Shares fall 17% at 266.0 pence. ([e-mail])

DFS Furniture's Strong 2Q Supports Upbeat Retail Tone

1024 GMT - Shares in DFS Furniture rise more than 1% after the U.K. retailer reported strong second-quarter trading and backed full-year profit guidance. Christmas trading updates from the retail sector have sounded an upbeat note and sofa-seller DFS has joined the pack, saying life isn't that bad, AJ Bell says. "It would suggest big-ticket items are still on the menu for many people, despite the gloomy economic backdrop," Bell's investment director Russ Mould writes. "Therefore, it's worth watching airline operators closely to see if the nation's appetite for foreign holidays is still intact, despite the cost." ([e-mail])

888's William Hill Synergies Should Help Offset Headwinds

1017 GMT - 888 Holdings' focus remains on the William Hill integration and deleveraging, as the deal should allow the company to better absorb inflation and regulatory headwinds, Jefferies analysts say in a research note. The betting and gaming company looks set to benefit from a halo effect post the FIFA World Cup, with continuing consumer engagement, they add. The valuation looks very modest when compared with historical levels as it executes the integration plan and synergies feed into numbers, and that material valuation discount is seen narrowing going forward, they say. Jefferies has a buy rating on the stock with a 280 pence price target. ([e-mail])

ITV's New Streaming Service Is an Eye Catcher That Can Help Future Proof

0943 GMT - ITV's statement on the initial performance of its new ad-funded streaming platform ITVX is eye-catching, with on-year increases of 55% and 65% in streaming viewing and online users, Shore Capital's Roddy Davidson says in a research note. The free-to-air platform's deep content library also counts in its favor at a time when consumers are increasingly scrutinizing their commitment to subscription services, he adds. "We are pleased to note a positive start from ITVX which we regard as a very important initiative in demonstrating that ITV can successfully capitalize on changing viewing habits via a complementary VOD [video on demand] offering," Davidson says. Shore Capital has a buy rating on the stock. Shares trade up 2.4% at 79.46 pence. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

01-13-23 0630ET