UK Spring Budget Announcements Unlikely to Affect -2-

1100 GMT - ConvaTec's 2022 results delivered a small outperformance, with adjusted operating profit of $404 million beating market views of $391 million, Peel Hunt says. The medical products and technologies company's outlook appears in line and there may be small adjustments upwards, but the added finance costs will likely offset this, Peel Hunt analysts Miles Dixon and Edward Sham say in a research note. "Though the group continues to describe the inflationary pressures coming through, we think today should be seen as an incremental positive," the brokerage says. Peel Hunt retains its add rating and 250 pence price target. Shares are down 2.1% at 219.8 pence. ([e-mail])

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Spirax-Sarco 2022 Results Beat Views But Guidance Turns Conservative

1055 GMT - Although Spirax-Sarco Engineering's Ebita and revenue were ahead of consensus, the tone of its outlook was slightly more cautious than in November, RBC Capital Markets analyst Mark Fielding says in a note. The steam-system engineering company's slightly more conservative guidance comes due to a slight fall in sale expectations at its Watson-Marlow division amid the normalization of Covid-19 vaccine-related demand, Fielding says. "Despite the slight change in tone, we do not expect an overall shift versus consensus Ebita at GBP428 million," he says. RBC rates the stock underperform and has a 10,500 pence target price. ([e-mail])

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Harbour Energy Boosts Dividend Despite Profit Hit

1051 GMT - Harbour Energy shares rise 1.3% after the North Sea oil & gas company launched a $200 million share buyback and raised its dividend, despite reporting a net-profit hit from the U.K.'s energy windfall tax. The so-called Energy Profits Levy had "all but extinguished our profit for the year", forced it to cut staff and investment and made it more determined to expand beyond the U.K., Harbour said. Still, it generated $2.1 billion of free cash flow and slashed net debt while paying out a decent level of dividends, AJ Bell says. "This situation is unlikely to engender a great deal of sympathy, particularly among those struggling with the cost of heating their homes," Bell's investment director Russ Mould writes.([e-mail])

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DS Smith Drops After Flagging Softer Box Demand

1027 GMT - Shares in DS Smith drop 4% after the packaging company blamed a slowdown in like-for-like corrugated-box volumes on market weakness and evidence of de-stocking over Christmas and New Year. While positive first-half profit trends had continued into 2H, with financial performance in line with company expectations, Smith said like-for-like corrugated-box volumes during 2H had been "lower than the comparative period." While Smith's valuation remains undemanding, rival Smurfit Kappa offers more attractive risk-reward, Goodbody analyst David O'Brien says in a note. ([e-mail])

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PageGroup Results Unlikely to Shift Earnings Views

1023 GMT - PageGroup's 2022 earnings were in line with consensus, with better-than-expected performance in EMEA and Asia Pacific offset by shortfall in the Americas and the U.K., Jefferies analysts Kean Marden and Allen Wells say in a note. The U.K. recruitment company gave only a vague insight into the year ahead, the analysts say, adding that momentum remained unchanged in the first two months of the year compared with December. However, they note that these are seasonally quiet months for the company, and that more significant catalysts should occur from March onward. "In our view, consensus 2023 earnings-per-share estimates are unlikely to change today," the analysts say. Jefferies has an underperform rating on the stock. ([e-mail])

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Informa Gains After FY Profit Rise, Acquisition

1002 GMT - Informa shares rise 3% after the business publisher announced higher annual profit and revenue and an acquisition. The results were strong and ahead of expectations and the outlook was robust, with the group guiding to underlying revenue/operating profit in line with/mildly ahead of expectations, even factoring in adverse foreign-exchange movements, Citigroup says. "The overall implication of the results and deal announcement is that consensus forecasts, in both underlying and reported terms, will likely move up," Citi analysts say in a note. Still, the company's planned acquisition of business-to-business events group Tarsus for $940 million would use up some of Informa's available balance-sheet firepower, Citi says. ([e-mail])

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Sterling Faces Hit as BOE Falls Behind Fed, ECB

0941 GMT - Sterling is at risk of falling as the Federal Reserve and European Central Bank show more resolve to raise interest rates than the Bank of England, ING says. GBP/USD dropped after Fed Chair Jerome Powell signalled higher rates than previously anticipated on Tuesday and it could depreciate further to 1.1650, ING analyst Chris Turner says in a note. "We continue to favor EUR/GBP trading up to and staying near 0.90 over coming months given the risk of the BOE shifting to a pause far earlier than the Fed or the ECB." GBP/USD rises 0.2% to 1.1870 after hitting a three-and-an-half-month low of 1.1803 on Wednesday, according to FactSet. EUR/GBP falls 0.1% to 0.8899. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

03-09-23 0656ET