TRIFAST PLC FTSE 100 index finished up 0.35% at 7,487.71 points on Monday in what has been a slow start of the week for European markets. Lifting the index into the green were top risers Entain, Persimmon and JD Sports while London-listed miners were under pressure. "A mixed Asia session which saw Chinese markets fall sharply after a failure to cut loan rates which has served to weigh on commodity prices more broadly," CMC Markets UK analyst Michael Hewson writes in a market comment. The weakness in China has translated into weakness in basic resources with Rio Tinto and Glencore trading lower to close down 1.7% and 3.5%, respectively. Endeavour Mining also fell 3.3% after posting disappointing fourth-quarter results.
COMPANIES NEWS:
Endeavour Mining Meets Gold Production Estimates; Sees 2024 Growth
Endeavour Mining said gold production met its estimates, and forecast further growth.
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Getech Sells Part of Head Office to Pay Debt
Getech Group said it had sold part of its head office and that it will use the net proceeds to pay debt and as working capital.
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S4 Capital Sees No Improvement in Backdrop, Expects Clients to Remain Cautious
U.K. digital advertising company S4 Capital said it doesn't expect the current market backdrop to improve in 2024, with client caution on marketing spend likely to persist
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Kooth Expects Strong Revenue Growth On U.S. Expansion Strategy
Kooth said that it expects strong revenue growth for 2023 on the back of its international-expansion strategy, which focused on the U.S. market, and despite challenges in the U.K. market.
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Virgin Wines Revenue Edges Up, Expects Full-Year in Line With Market Views
Virgin Wines UK said total revenue for the first half of its fiscal year rose slightly, despite a subdued consumer economic landscape, and that it expects its performance for the year to be in line with current market expectations.
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HG Capital Trust Sells Argus Media Stake for $66.1 Mln
HG Capital Trust said it has sold all its shareholding in Argus Media, a provider of intelligence to the energy and commodity markets, in a deal valued at around 52 million pounds ($66.1 million).
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Compass to Buy CH&CO for Initial Enterprise Value of $600 Mln
Compass Group said it has agreed to buy provider of premium contract and hospitality services CH&CO for an initial enterprise value of 475 million pounds ($603.4 million) to complement its footprint in the U.K. and Ireland.
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Trifast Cuts Guidance, Plans to Lay off Around 130 Employees
Trifast has cut its full fiscal-year guidance and plans to lay off around 130 workers due to weaker-than-expected demand.
MARKET TALK:
U.K. Insurers Have Strong Capital Builds
1400 GMT - U.K. insurers are still well capitalized with a strong dividend-paying capacity on Solvency II operating surplus generation, despite swap rates being significantly down in the last quarter of 2023, Mediobanca writes in a note to clients. "Solvency II will remain strong with leverage continuing to improve, while operating capital generation will continue to support dividends and excess capital return capacity," analyst Fahad Changazi writes. Strong returns, along with U.K. macro stability from lower inflation and interest rates cuts, should at least keep the performance of U.K. stocks from eroding, he adds. The broker raises its rating on Aviva to outperform and cuts M&G to neutral. It also downgrades motor insurer Admiral to underperform on valuation. (elena.vardon@wsj.com)
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Trifast's Cost-Saving Plan Could Drive Margin Recovery
1353 GMT - Trifast could recover margins via its cost saving actions, Shore Capital analysts Tom Fraine and Robert Sanders write in a research note. The industrial fastening specialist's pricing power has proven to be limited in recent years, with price increases lagging and possibly being below inflation, the analysts say. "However, we believe there is scope for the new management team to recover margins through cost saving initiatives," they say. Due to a weak demand outlook, Trifast has moved forward a recovery plan to save GBP3 million in costs, while undertaking a strategic review to take further measures. Shares are down 19% at 75.00 pence. (christian.moess@wsj.com)
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Trifast Looks Well-Prepared For Improving Markets
1344 GMT - Trifast's looks better prepared than before for when market conditions improve, Peel Hunt analysts write in a research note. "Despite the tough markets, management is delivering on the strategy and creating a more focused organization," Peel Hunt says. The U.K. maker and distributor of industrial fastening plans to restructure its business to save GBP3 million, while looking into making further cost-saving actions. It cut its guidance due to persisting weak demand which particularly hit its Asia operations and global distribution sales channel. Trifast is a corporate client of Peel Hunt. Shares are down 19% at 75.00 pence. (christian.moess@wsj.com)
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(END) Dow Jones Newswires
01-22-24 1216ET
