The FTSE 100 closed Wednesday up 0.34% after commodities investors reversed course. The index has had a better day, bouncing back from two days of declines helped by the basic resources sector, CMC Markets UK chief market analyst Michael Hewson said in a research note. This follows Rio Tinto bringing forward the start of production of iron ore at its Simandou project in Guinea, as well as expressing confidence in demand from China, Hewson said. Elsewhere, Weir Group rose after saying its 2026 operating margin target would be 20%, though British American Tobacco fell to 13-year lows, pushing it close to being one of the worst performers year to date due to forecasting a GBP25 billion impairment charge, Hewson noted.


COMPANIES NEWS:

British American Tobacco Sees GBP25 Bln Impairment But Backs Guidance

British American Tobacco said it expects a one-off impairment of around 25 billion pounds ($31.49 billion) in 2023, though it backed its full-year guidance.

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Ten Entertainment Agrees to GBP287 Mln Takeover by Trive Capital

Ten Entertainment Group has agreed to a 287 million pound ($361.5 million) takeover by Neon Buyer, which is indirectly owned by investment funds advised by U.S.-based buyout company Trive Capital Partners.

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Likewise Group Expects to Meet Market Views After Year-to-Date Revenue Rise

Likewise Group said its revenue rose in the first eleven months of the year and that it remains on track to meet current market expectations.

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Paragon Banking Pretax Profit Fell; Plans GBP50 Mln Buyback

Paragon Banking Group reported a lower pretax profit for fiscal 2023 and said it plans a share buyback of up to 50.0 million pounds ($63 million) for fiscal 2024, reflecting the strength of its capital ratios and liquidity level.

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Redde Northgate Pretax Profit Fell Despite Revenue Growth

Redde Northgate reported a lower pretax profit for fiscal 2024's half-year due to higher interest costs, despite revenue growth reflecting strong demand.

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PPHE Hotel Group Appoints Kenneth Bradley as Non-Executive Deputy Chairman

PPHE Hotel Group said it has appointed Kenneth Bradley on its board of directors as non-executive deputy chairman, effective immediately.

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Various Eateries Plans GBP10 Mln Share Placing to Fund Expansion

Various Eateries said it plans to raise around 10 million pounds ($12.6 million) in a share placing to roll out a series of new sites.

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Yellow Cake's Uranium Holdings Value Rose as Higher Demand Lifts Spot Prices

Yellow Cake said the value of its uranium holdings rose in the first six months of fiscal 2024 due to higher spot prices and an increase in its physical holdings.

MARKET TALK:

Ten Entertainment Takeover Offer Looks Too Low

0732 ET - A takeover bid for Ten Entertainment undervalues it, Peel Hunt says, downgrading the bowling-alley operator to hold from buy. Ten said it had agreed to a 412.5 pence-per-share offer from U.S. private-equity firm Trive Capital Partners, valuing the company at about GBP287 million. Ten's shares were "woefully undervalued" before the offer, which equates to 6.7x enterprise value/EBITDA, Peel Hunt says. "This is a low exit multiple for a company that had average EV/EBITDA rating of 7.3x pre-pandemic and has generated over 40% like-for-like volume growth post-pandemic," Peel analysts say in a note, cutting their target price to 412 pence from 450p to reflect the offer. Shares surge 32% to 408p. (philip.waller@wsj.com)

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Weir Group Shares Have Scope For Further Gains After Upbeat Update

1201 GMT - Weir Group is among the biggest FTSE 100 risers, up 3% to 1924 pence after the Scottish mining engineer announced a new group operating-margin target of 20% in 2026 and said it was on track to achieve an operating margin of 17% this year. It also said conditions in its markets and the 2023 guidance in its 3Q trading update last month were unchanged. The move shows the stock's potential for further material progression, Peel Hunt says. "We have highlighted we see Weir as one of the most compelling compound growth propositions in the sector," Peel analysts say in a note, reiterating their buy recommendation and 2530p price target. "Today's announcement reinforces this confidence." (philip.waller@wsj.com)


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(END) Dow Jones Newswires

12-06-23 1223ET