UK Retail Sales Data Point to One-Off Boost Amid Downward Trend
0809 GMT - The better-than-expected 0.1% decline in U.K. retail sales in June can be attributed to an increase in food sales due to the Queen's Jubilee holiday, Samantha Philips, partner at McKinsey & Company, says in a note. This is likely to be an temporary boost for retailers as the cost-of-living crisis continues to squeeze incomes, she says. "Despite June's sales, shoppers tell us they are still feeling cautious about spending," Philips says. The economic impact is showing across all income categories and age groups, with 69% of U.K. consumers lacking confidence in the economy and 74% expecting prices to continue to rise for the next year, she says. (xavier.fontdegloria@wsj.com)
Companies News:
UK Regulator Clears Warner Bros. Discovery/BT Group Deal
The U.K.'s Competition and Markets Authority said Friday that it has decided not to refer BT Group PLC's sports joint venture with Warner Bros. Discovery to a Phase 2 investigation.
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JD Sports Fashion's Five-Month Sales Ahead of Prior Year
JD Sports Fashion PLC said Friday that total sales for the first five months of fiscal 2023 remain 5% ahead of the prior year, and that it expects to close out the current financial year with another record pretax-profit performance.
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Mirriad Advertising Sees Flat 2022 Revenue Due to China Weakness
Mirriad Advertising PLC said Friday that it now sees 2022 revenue being flat on year at around 2 million pounds ($2.4 million) as market conditions in China are significantly weaker than expected.
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Supply@Me Capital to Raise Up to GBP320,855 in Open Offer
Supply@Me Capital PLC said Friday that it intends to raise up to 320,855 pounds ($385,154) through an open offer as part of its capital enhancement plan.
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Homeserve 1Q Performance in Line With Board Views; HVAC Strategy Continues
Homeserve PLC said Friday that its performance in the first quarter of fiscal 2023 has been in line with the board's expectations, and that it continues to execute its buy-and-build heating, ventilation, and air conditioning, or HVAC, strategy.
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Beazley 1H Pretax Profit Fell Sharply on Investment Performance
Beazley PLC said Friday that pretax profit for the first half of 2022 fell sharply due to a complicated investment environment and that gross premiums written rose.
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JTC Posts Net Organic Revenue Growth for 1H, in Line With Guidance
JTC PLC said Friday that its performance in the first half of 2022 was marked by net organic revenue growth, and that it met all of its guidance metrics for the period.
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Stanley Gibbons CEO to Step Down in September; New CEO Named
Stanley Gibbons Group PLC said Friday that Chief Executive Officer Graham Shircore will step down on Sept. 12, with Tom Pickford set to take over the role.
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Record PLC 1Q Assets Under Management Hit by Financial Market Uncertainty
Record PLC said Friday that assets under management fell in the first quarter as investment valuations suffered from uncertain financial markets, and despite recording net inflows for the period.
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BT Group-Warner Bros. Discovery JV Cleared by UK Regulator -- Update
The U.K.'s Competition and Markets Authority said Friday that it has decided not to refer BT Group PLC's sports joint venture with Warner Bros. Discovery to a Phase 2 investigation.
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FRP Advisory FY 2022 Pretax Profit Slipped on Higher Expenses; Revenue Rose
FRP Advisory Group PLC said Friday that its fiscal 2022 pretax profit slipped on higher expenses, though revenue rose and the outlook is positive.
Market Talk:
Mitchells & Butlers Could Face Estimate Downgrades on Inflationary Pressures
0825 GMT - Although U.K. pub-and-restaurant operator Mitchells & Butlers' 3Q like-for-like sales rose 0.9% versus FY 2019, inflationary pressures look set to last longer, Liberum analyst Anna Barnfather says in a note. These pressures--which look set to persist into the next year--put downward pressure on margins and lead Liberum to cut Ebitda estimates for FY 2023 by GBP37 million to GBP385 million, and for FY 2024 by GBP24 million to GBP412 million, mostly reflecting higher energy costs. Still, FY 2022 Ebitda estimates are kept at GBP382 million, Barnfather says. "Importantly, net bank debt should continue to fall and may benefit from reduced pension contributions," she says. Liberum rates the stock a buy and cuts its target price to 280 pence from 315 pence. (anthony.orunagoriainoff@dowjones.com)
Capita Should Focus on Disposals to Boost Growth
0809 GMT - Capita's financial position continues to improve but further disposals will be needed to avoid future uncertainty, Shore Capital analyst Robin Speakman says in a note. The U.K. digital-services company--which is due to report first-half earnings on Aug. 5--has performed in line with management views in 1H, with revenue for the full year likely to be weighted to the second. While debt should materially decline in 2022, Capita's balance sheet remains under pressure, with earnings not yet supported by free cash flows, Speakman says. Revenue and profit should gain momentum from 2023, but further disposals will have to be a priority in order to fund this, he notes. As things stand, dividends remain a way off, the analyst adds. (don.forbes@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
07-22-22 0443ET
