European, UK Banks With Strong Valuation Support Provide Opportunity

European, UK Banks With Strong Valuation Support Provide Opportunity

1211 GMT - The European and U.K. banking landscape illustrates the defensive characteristics of cyclically exposed banks and the cyclical characteristics of defensive banks, Berenberg says. In a note, the brokerage highlights the attractive positioning for AIB Group and Bank of Ireland, which should further benefit from higher ECB interest rates and inorganic growth. In terms of valuation support, NatWest and OSB Group are the highest in its coverage as the former can benefit from a multiyear reinvestment of its deposit hedge while the latter from countercyclical growth and sustainably high returns. Berenberg says ING Group screens as superior to BNP Paribas and Credit Agricole despite similar absolute valuation supports, while those of Nordic banks DNB, Handelsbanken and SEB rank poorly against the sector and it prefers Swedbank along with Nordea. ([e-mail])

COMPANIES NEWS:

Saga Sees Higher FY 2024 Underlying Profit on Continuing Cruises, Travel Momentum

Saga said Tuesday that it expects its year-end underlying profit to be well ahead the previous fiscal year as it continues to benefit from momentum at its cruise and travel businesses.

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Bidco to Buy Lookers in GBP465.4 Mln All-Cash Deal

Lookers said on Tuesday that it had agreed on terms for a takeover through a recommended all-cash offer by Bidco valuing the U.K. car dealership at 465.4 million pounds ($595.4 million).

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SThree 1H Net Fees Sipped Against Tough Comparative; Contract Net Fees Rose 3%

SThree said Tuesday that net fees on a constant-currency basis for the first half of fiscal 2023 fell 2% against a strong post-pandemic comparative and amid an uncertain macroeconomic environment, and that contract net fees were up 3% on year.

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Lords Group Trading Sees Fiscal 2023 Performance in Line With Market Expectations

Lords Group Trading said it maintains expectations for its fiscal 2023 performance in line with the market despite a persistently negative macroeconomic environment.

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Somero Enterprises Shares Fall on Lower 1H, 2023 Revenue Due to US Market Issues

Shares in Somero Enterprises fell Tuesday after it said it expects revenue for the first half and full-year 2023 to be below the year-prior comparatives due to factors affecting the U.S. market, and that it expects revenue in the second half to improve.

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Conroy Gold & Natural Resources to Raise GBP400,000 for Gold Exploration Programs

Conroy Gold & Natural Resources said Tuesday that it will raise 400,000 pounds ($511,760) via a discounted share placing and will use the funds to accelerate gold and other minerals exploration programs in Ireland and Finland.

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Capital Metals Shares Drop on Plans for Discounted Placing to Raise GBP500,000

Shares in Capital Metals dropped on Tuesday after the miner outlined plans to raise gross proceeds of 500,000 pounds ($640,155) through a placing of shares in order to resolve license issues.

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Abrdn Sells Remaining GBP337 Mln Shareholding in HDFC Asset Management

Abrdn on Tuesday said that it has sold 21.8 million shares in HDFC Asset Management Co. for 337 million pounds ($431.2 million) and that it will return most of the proceeds from stake sales to shareholders.

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Gear4Music Trades Lower After Swing to Pretax Loss in FY 2023

Shares in Gear4music fell on Tuesday after the company swung to a pretax loss in its fiscal year 2023 as market conditions continue to be challenging.

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Bidstack Shares Fall on Widened 2022 Pretax Loss, Lower 1H Revenue for Current Year

Shares in Bidstack Group fell Tuesday after the company said its 2022 pretax loss widened due to higher costs, and that it expected revenue for the first half of 2023 to be below the year-prior's comparative.

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Braemar Names Grant Foley as New CFO, Starting August

Braemar said Tuesday that it has named Grant Foley as chief financial officer, effective from the first day of August, replacing current CFO Nick Stone.

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OPG Power Ventures FY 2023 Results Were in Line With Views

OPG Power Ventures said Tuesday that revenue and profit after tax for fiscal 2023 were in line with market expectations.

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Guild eSports Completes GBP622,200 Fundraise

Guild eSports said Tuesday that it has completed a fundraise of 622,200 pounds ($796,609) meant for general working capital purposes in order to drive growth and execute its existing strategy.

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C4X Discovery Chair Steps Down; CEO Named Interim Chair

C4X Discovery said Tuesday that nonexecutive chair Eva-Lotta Allan will step down with immediate effect to focus on other board roles, and named Chief Executive Officer Clive Dix as interim executive chair.

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Tlou Energy Raises $4.5 Mln via Entitlement Offer, Falling Short of Original $7.3 Mln Target

Tlou Energy said Tuesday that it raised around 6.6 million Australian dollars ($4.5 million) via an entitlement offer, below original expectations of A$10.65 million as announced on May 12.

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Standard Bank Expects Record Early 2023 Revenue Growth; Sees 1H EPS Rising

Standard Bank Group said Tuesday that it saw record revenue growth in the first five months of the year and expects first-half earnings per share to rise.

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Proton Motor 2022 Loss Widened on Slow Orders, Rising Finance Costs

Proton Motor Power Systems on Tuesday said that its losses widened in 2022 as its orders slowed down and financing costs increased and that it has extended its loan facility.

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Revolution Beauty Signals Potential Proceedings Against Founder Adam Minto

Revolution Beauty Group on Tuesday said that it has sent a letter of claim to its founder and former Chief Executive Adam Minto to recover costs incurred from alleged breaches of duties.

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Accesso Technology Group PLC Acquisition of VGS

TIDMACSO

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Frasers Group Buys Stakes in Currys, Boohoo

Frasers Group on Tuesday said it has invested in technology-products retailer Currys and online fashion retailer Boohoo Group as part of its strategy to build stakes in companies in the sector.

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PayPal to Sell European BNPL Loan Receivables to KKR, Increase Stock Buybacks

By Will Feuer

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Tiger Royalties' Shares Fall on Widened 2022 Pretax Loss

Tiger Royalties & Investments shares fell Tuesday after the company said 2022 pretax loss widened after booking a loss in fair value of investments, and that the board was considering ways to recapitalize the company to facilitate investments or a transaction going forward.

MARKET TALK:

DS Smith Tipped to Report Better Margins at FY Results

1318 GMT - DS Smith should demonstrate resilience relative to rivals and margin improvement in full-year results on Thursday, Citigroup says. Box demand has been slower, but likely better than that experienced by Smith's peers given the group's higher exposure to fast-moving consumer-goods customers, Citi says. "Margins are also likely to have benefited from lower energy costs and lower pulp input costs; the short paper strategy may prove to be advantageous in periods of falling paper prices," Citi analysts say, adding that they expect margins to be strongest in southern Europe and North America. "We think a reiteration of the resilence of DS Smith's business model in the current environment could support sentiment, given positive momentum is difficult to see elsewhere." ([e-mail])

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Man Group Merits Higher Rating Given Strong AUM Dynamics

1223 GMT - Man Group's relatively low valuation doesn't reflect its relatively strong financial and business performance, Peel Hunt says in a note, initiating coverage of the London hedge-fund's stock with a buy rating and 271 pence target price. The group's asset under management (AUM) dynamics are above average compared with its U.K. peer group, so it seems anomalous for shares to trade at a discount to peers with such AUM growth and flow metrics, analysts say. Performance fees can be volatile, detract from earnings visibility and contribute to the shares' low rating, but also facilitate share buyback programs, they say. "Conversely, the recurring generation of investment alpha validates the raison d'etre for the business and aligns the interests of Man with its clients," the U.K. brokerage says. ([e-mail])

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SThree Consensus Downgrades Likely on Revenue Trajectory, Seasonal 2H Weighting

1217 GMT - SThree's 2Q net fees of GBP106 million are 8% below consensus, with momentum for the recruitment company deteriorating sequentially during the quarter, Jefferies analysts Kean Marden and Allen Wells say in a note. Organic growth fell 7% in the quarter, versus 1Q's 4% rise, and analysts' forecasts of minus 1%. A 3% reported fall in growth included a 4% foreign exchange tailwind with permanent contracts falling 19% compared with the 3% rise in its contract business, the analysts say. The company didn't give any FY 2023 profit expectations but, "Consensus downgrades seem likely, given the revenue trajectory, Sthree's seasonal 2H Ebita weighting, and a similar narrative from Robert Walters last week," analysts say. Jefferies rates the stock hold and has a 390 pence target price. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

06-20-23 0947ET