Vodafone May Need To Accelerate Shake-Up To Ease Activist Pressure : AJ Bell

Vodafone May Need To Speed Up Shake-Up To Ease Pressure

1037 GMT - Vodafone Group shares are among the biggest FTSE 100 risers, up 3.4% after the U.K. mobile-phone operator said third-quarter trading matched expectations and that it is on track to meet fiscal 2022 guidance. While Vodafone is making progress, it may face pressure from activist investor Cevian Capital unless it speeds up efforts to streamline the business and focus on fewer areas, AJ Bell says. "Activists don't like to wait around, preferring to look for the quick wins to help drive up business value," Bell's investment director Russ Mould says. "That could create a culture clash, so expect some fireworks between Vodafone's management and Cevian if it does decide to take a more aggressive approach to pushing for change." ([e-mail])

 
Companies News: 

British Land Buys Three Warehouses in London for GBP157 Mln

British Land Co. said Wednesday that it has bought three warehouses located in London for 157 million pounds ($212.3 million).

---

Severn Trent's Operational Excellence Continued Since November Interims

Severn Trent PLC said Wednesday that in the period from Nov. 23 to Feb. 2 its operational excellence continued across all areas of the business, and backed its customer Outcome Delivery Incentive, or ODI, rewards guidance.

---

DX (Group) Says 1H Was in Line with Board's Expectations

DX (Group) PLC said Wednesday said that the first half of fiscal 2022 was in line with board's expectations, despite issues in the labor market and customers' supply chains.

---

Vodafone Group 3Q Performance in Line; On Track to Meet Fiscal 2022 Guidance

Vodafone Group PLC said Wednesday that third-quarter performance was in line with expectations and that it is on track to meet fiscal 2022 guidance.

---

Chamberlin to Raise GBP1.8 Mln via Discounted Equity Raise

Chamberlin PLC said Wednesday that it has conditionally raised 1.8 million pounds ($2.4 million) via a discounted share issue.

---

WANdisco 4Q Revenue Seen in Line with Market Views

WANdisco PLC said Wednesday that its performance in the fourth quarter of 2021 was strong, with revenue now expected to be in line with current market views.

---

Playtech Doesn't Expect GBP2.1 Bln Aristocrat Proposal to Succeed; Receives Other Offers

Playtech PLC said Wednesday that it doesn't expect the recommended 2.1 billion pounds ($2.84 billion) offer from Aristocrat (UK) Holdings Ltd. to achieve the minimum threshold required for approval and that it is evaluating proposals from third parties for the B2B and B2C businesses.

---

Cyba Completes GBP6 Mln Fundraising for Acquisition

Cyba PLC said Wednesday that it has completed a six million pound ($8.1 million) fundraising related to the acquisition of Narf Industries LLC at an issue price of two pence a share.

---

Empiric Student Property's Occupancy Rose at Upper End of Guidance

Empiric Student Property PLC said Wednesday that it achieved a good performance at the start of its 2021-22 academic year, with revenue occupancy increasing from the prior year.

---

Softline Holding Increases Buyback to $100 Mln

Softline Holding PLC said Wednesday that it has increased its buyback program to $100 million to fund its long-term management incentive plan.

---

Abrdn European Logistics Raises GBP38 Mln

Abrdn European Logistics Income PLC said on Wednesday that it has raised 38 million pounds ($51.4 million) via a placing and a retail offer.

---

Glencore Backs 2022 Production Guidance After In-Line 2021 -- Update

Glencore PLC on Wednesday reaffirmed guidance for 2022, and said that its operations in 2021 performed in line with expectations.

---

Origo Partners to Return $1.7 Mln to Shareholders; Sells Asset

Origo Partners PLC said Wednesday that it will return around $1.7 million to shareholders and that it has agreed to sell its interest in Moly World for $200,000.

---

UK SPAC PLC Shares to Be Cancelled Thursday

U.K. SPAC PLC said Wednesday that while its planned acquisition of Hellenic Dynamics SA is progressing, it isn't expected to complete by the deadline, and its shares will therefore be cancelled from trading on Feb. 3.

---

Longboat Energy to Abandon Ginny/Hermine Well in Norwegian Sea; Shares Falls

Longboat Energy PLC said Wednesday that it has failed to encounter hydrocarbons at the stacked Ginny/Hermine exploration prospects in the Norwegian Sea, and that the well will be plugged and abandoned.

---

Wynnstay Group FY 2021 Pretax Profit Rose; FY 2022 Starts in Line With Views

Wynnstay Group PLC said Wednesday that its fiscal 2021 pretax profit rose as revenue increased, and that its performance in fiscal 2022 has started in line with expectations.

---

Intercede Group Secures $500,000 Contract With U.S. Federal Agency

Intercede Group PLC said Wednesday that it has secured a $500,000 contract with an independent U.S. federal agency for the supply of its MyID credential management software.

---

Beeks Signs $2.2 Mln Contract With FX Broker, Expects FY 2022 Revenue to Beat Market Views

Beeks Financial Cloud Group PLC said Wednesday that it has signed a $2.2 million contract with one of the largest foreign-exchange brokers for its recently launched Proximity Cloud offering.

---

Residential Secure Income to Raise GBP39 Mln Via Share Placing

Residential Secure Income PLC said Wednesday that it will raise up to 20 million pounds ($27 million) via a share placing and use the funds to finance up to GBP39 million of shared ownership transactions that are currently in process.

---

Scirocco Expects Greenan Generation Ebitda to Exceed Guidance

Scirocco Energy PLC on Wednesday forecast that its 50%-owned Greenan Generation Ltd. anaerobic-digestion business will generate higher-than-expected earnings in the first 12 months of ownership.

 
Market Talk: 

Land Securities Is Likely to See Better Share Price Soon

1026 GMT - Land Securities' new strategy and rebased retail rents are likely to lead to better than ever share prices, though current stock prices remain in line, RBC Capital Markets says. If the commercial-property developer and investment company's management delivers successfully on its plan for a more flexible, operational business, better than historic share price multiples would be justified, offering some 20% or more potential upside, the Canadian bank says. "We expect a combination of news of elevated activity levels and a positive inflection in key financial metric trends to drive a continuation of Landsec's recent share price outperformance," RBC says, retaining its outperform rating and 1,000 pence price target on the stock. Shares are up 1.1% at 795.2 pence. ([e-mail])

British Land's Acquisition Exemplifies Urban Logistics Strategy

1006 GMT - British Land's GBP157 million acquisition of three warehouses in Hannah Close, London is another fine example of its strategy of delivering new urban logistics space through the intensification and repurposing of existing buildings, Goodbody says. The real-estate company's purchase builds on previous purchases in Enfield, North London, Thurrock to the east and Finsbury Square in the city, the brokerage says. Combined with opportunities identified on British Land's standing portfolio, this brings the urban logistics pipeline to more than GBP1 billion, which has a forecast blended internal rate of return of around 15%, Goodbody says. Goodbody retains its hold rating and price target of 525 pence for British Land's stock. Shares are up 0.6% at 548.8 pence. ([e-mail])

IG Group's EPS Has Scope Grow

0957 GMT - IG Group Holdings' recent forecast upgrade suggests that earnings per share has room to grow as the company benefits from core business strength, Shore Capital says. The U.K. investment group says volatility could boost client activity volume, while revenue at Tastytrade--an IG-owned U.S. trading platform--should improve in case of a weakened pound against U.S. dollar, and increasing Fed rates could raise the interest income Tastytrade generates. Shore Capital has a buy rating on the stock and upgrades the target price to 1,150 pence from 980 pence. Shares are up 1.8% at 825.0 pence. ([e-mail])

Vodafone's Growth Could Be on the Up

0942 GMT - Vodafone's growth could be revitalized by a number of factors, including a recovery in handset sales and roaming fees with the increase in international travel, interactive investor says. Shares in the telecoms provider are in focus again, rising 11% since the beginning of the year amid recent reports of stakebuilding by an activist investor and a potential partner tie-up in the Italian market, head of markets Richard Hunter says. Vodafone has yet to fulfil the potential provided by its scale, cash generation, experience and global sprawl, he adds, noting the longer-term underperformance, with shares over the last year having risen 1% compared with an almost 16% rise for the wider FTSE 100. Shares trade up 2.9% at 131.66 pence. ([e-mail])

Vodafone's Ability to Unlock Value, Improve Returns Remains in the Spotlight

0913 GMT - Vodafone management's actions to unlock value and improve returns will remain in focus, Citi says, adding that expectations need to be kept in check given the challenges in delivering on some of the deals that have been highlighted in the press. Overall, the numbers released in its performance update look like they will satisfy the market, while developments with regards to consolidation in U.K., Italy and Spain will be particularly monitored, the U.S. bank says. The deconsolidation of Vantage will also be in the spotlight, it says. Citi has a buy rating on the stock with a target price of 170 pence. Vodafone shares trade up 2.7% at 131.36 pence. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires; Dow Jones Newswires; [e-mail]

(END) Dow Jones Newswires

02-02-22 0556ET