UKX FTSE 100 Index

The FTSE 100 ended the day down 0.9% on Thursday as European markets struggled in the wake of U.S. Treasury Secretary Janet Yellen saying there weren't any plans to extend banking deposit insurance. "The FTSE 100 in particular has struggled on a combination of ex-dividends, and a weak performance from banks. British American Tobacco is the worst performer on an ex-div basis, while HSBC and Standard Chartered have also slipped back after posting two successive days of gains," CMC Markets UK's Chief Market Analyst Michael Hewson says in a research note. Melrose Industries ended the day as the biggest gainer, finishing up 3.7%, while British American Tobacco was the biggest faller, ending the day down 3.7%.

 
COMPANIES NEWS: 
 

FinnCap, Cenkos to Merge in All-Share Deal

London-listed investment banks finnCap Group PLC and Cenkos Securities PLC said Thursday that they have agreed to an all-share merger under which finnCap will buy Cenkos for 21.1 million pounds ($25.9 million).

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Safestyle UK Sees 2023 Revenue Below Views Amid Challenging Consumer Backdrop

Safestyle UK PLC said Thursday that 2023 revenue is anticipated to come in below current expectations amid a tough consumer backdrop, and that it swung to a pretax loss in 2022.

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Wickes 2022 Profit Fell on Non-Recurring Costs; Revenue Rose

Wickes Group PLC Thursday reported a fall in pretax profit for 2022, driven by non-recurring costs, and despite a rise in revenue.

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Crest Nicholson Says UK Housing Market Recovering; Early 2023 Sales Improving

Crest Nicholson Holdings PLC said Thursday that a recovery in customer confidence and housing market activity is under way, with sales improving in the new calendar year.

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Inland Homes Shares to Be Suspended on 2022 Results Delay; Considers Fund Raising

Inland Homes PLC said Thursday that it won't be able to publish its 2022 results before the March 31 deadline and its shares will be temporarily suspended, and it is contemplating a fund raising.

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C&C Sees FY 2023 Operating Profit Jump; To Resume Dividends

C&C Group PLC said Thursday that it expects operating profit for fiscal 2023 to nearly double on the back of increased revenue, and that it seeks to return to dividend payments and further capital returns.

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Playtech Reports Record 2022 Earnings Driven by B2B Markets, Snaitech

Playtech PLC said Thursday that adjusted pretax profit and revenue rose in 2022, with record earnings driven by strength in business-to-business markets and its Snaitech division.

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Carr's Group FY 2022 Pretax Profit Rose Despite Higher Costs, Supply-Chain Delays Hitting Engineering Unit

Carr's Group PLC reported Thursday a slight rise in pretax profit for fiscal 2022 as revenue grew in its specialty agriculture division, and despite a decline in engineering revenue due to supply-chain issues and inflationary pressure.

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Inchcape 2022 Pretax Profit Rise on Strong Sales; Raises Dividend

Inchcape PLC said Thursday that pretax profit rose in 2022 on growth across business segments and regional markets, and that it has proposed a final dividend.

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Audioboom Swung to 2022 Pretax Loss Despite Record Revenue

Audioboom Group PLC on Thursday reported a swing to pretax loss for 2022 after booking share-based payment charges and despite revenue hitting record levels, driven by higher monthly downloads.

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ECO Animal Health Sees FY 2023 Earnings Above Market Views; Shares Rise

Shares in ECO Animal Health Group PLC rose 15% on Thursday after the company said that it expects revenue and earnings before interest, taxes, depreciation and amortization for fiscal 2023 to be slightly ahead of market expectations amid strong performance in Asia.

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IDOX Expects Double-Digit Rise in FY 2023 Revenue

IDOX PLC said Thursday that it is well-placed to achieve double-digit revenue growth in fiscal 2023 thanks to high levels of recurring revenue, contract renewals, orderbook and a good acquisition pipeline.

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SRT Marine Systems Shares Rise on Narrowed FY 2023 Pretax Loss, UK Contract News

Shares in SRT Marine Systems PLC rose Thursday after it said it expects to report that pretax loss for fiscal 2023 narrowed as revenue soared, and that it has agreed on a contract for a new U.K. Coast Guard project worth 145 million pounds ($177.9 million).

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Seplat Energy Terminates Consultancy Agreement, Files Suit Against Former Chair

Seplat Energy PLC said Thursday that it has taken legal action against its former chair after terminating a consultancy agreement with its wholly-owned subsidiary and its co-founder with immediate effect.

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Zinnwald Lithium' Shares Jump on Premium Fund Raising

Shares of Zinnwald Lithium PLC rose 24% on Thursday after the company said that it has raised 18.7 million pounds ($23 million) via the premium share placing first announced late Wednesday.

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888 Holdings Backs 2022 Guidance; Sees 2023 Earnings Meeting Market Views

888 Holdings PLC said Thursday that its 2022 results will be consistent with prior guidance, and it is confident in meeting market expectations for adjusted earnings for 2023.

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Osirium Technologies Shares Fall on Widened 2022 Pretax Loss

Shares in Osirium Technologies PLC fell 17% on Thursday after the company reported a widened pretax loss for 2022 on higher administrative expenses, despite higher revenue and record bookings.

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Pollen Street 2022 Pretax Profit Fell on Higher Costs

Pollen Street PLC said Thursday that 2022 pretax profit fell after booking higher costs but that it was well-positioned through its core strategies to drive long-term organic growth.

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Sopheon Shares Rise on Higher 2022 Profit, Revenue

Sopheon PLC shares rose Thursday after it said its 2022 pretax profit rose together with revenue, while adjusted earnings beat market expectations.

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Hardide Sees 1H Sales Up 7%, But Economic Headwinds Delaying Customer Orders

Hardide PLC said Thursday that it has experienced growth across its key markets over the first half of fiscal 2023 with sales 7% ahead of the same period a year earlier.

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GB Group Managing Director Nick Brown to Retire

GB Group PLC said Thursday that Group Managing Director Nick Brown will retire from the board at the end of this month.

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Marula Mining Hires Consultants, Lawyers, Ahead of London Listing

Marula Mining PLC said Thursday that it is making continued progress in its plans to float on London's junior AIM, with the appointment of technical consultants and a law firm.

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Gulf Keystone 2022 Pretax Profit Rose on Higher Production, Oil Price

Gulf Keystone Petroleum Ltd. said pretax profit rose in 2022 thanks to an increase in oil prices and higher production, and that it has declared a dividend payout.

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Fragrant Prosperity Signs Preliminary Reverse Takeover Deal; Shares Suspended

Fragrant Prosperity Holdings Ltd. said Thursday that it has signed a preliminary deal to buy U.K. based fintech business Hi 55 Ventures Ltd. in a deal that would be classified as a reverse takeover if it proceeds.

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SVB UK's Deposit Base Rises After HSBC Takeover, Sky News Reports

Silicon Valley Bank's U.K. arm has had hundreds of millions of pounds of deposit inflows after its 1 pound ($1.23) rescue takeover by HSBC Holdings PLC, Sky News reports.

MARKET TALK:

Carr's Group Shares May See Downward Pressure Once Trading Resumes

1342 GMT - Although Carr's Group posted a strong set of results for FY 2022, investors should focus on the agriculture and engineering company's outlook given the delay to results, Shore Capital analysts Akhil Patel and Clive Black say in a note. Energy and raw material costs are plateauing despite being higher year-on-year, which should support its specialty agriculture division, while the engineering division's order book of GBP40.6 million is strong, the analysts say. "However, we note the group has lost its FTSE index status suggesting there may be some downward pressure on shares once trading resumes," the analysts say. Shares are currently suspended due to the delay in reporting fiscal 2022 earnings. (anthony.orunagoriainoff@dowjones.com)

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Informa Might Face Pressure if Customers Cut Spending

1314 GMT - Informa could take a hit as a bank-lending clampdown potentially prompts companies to cut spending, Morgan Stanley says, downgrading the business publisher and event organizer to equal-weight from overweight. Informa's long-term equity story remains attractive, driven by factors such as the enduring value of face-to-face meetings for business development and smart use of surplus capital in both accretive M&A and share buybacks, Morgan Stanley says. Still, tighter credit conditions prompted by ongoing banking-industry dislocation may indirectly affect Informa's business-event operations, with corporate customers likely to be more cautious on discretionary operational spending in 2023 and 2024, Morgan Stanley analysts write. The bank also cuts its price target to 730 pence from 750p. Shares fall 2% to 678p. (philip.waller@wsj.com)

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Sterling to Gain if BOE Takes Rates Higher Than Expected

1309 GMT - The Bank of England could raise interest rates further than expected and is unlikely to revert to cutting rates any time soon, which should support sterling, Ebury says. The BOE, which lifted rates by 25 basis points to 4.25% on Thursday, is likely deliver another 25bps rise in May with a further possible increase in June before pausing, Ebury strategist Matthew Ryan says in a note. Rate cuts don't look likely for some time, particularly given the upside surprise in the latest core inflation data, he says. "This could be bullish for sterling, as markets see the base rate ending 2023 only modestly higher than current levels." (renae.dyer@wsj.com)

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Pound Trims Initial Post-BOE Gains on Prospect of Pause in Rate Rises

1258 GMT - Sterling trims its initial gains after the Bank of England raised interest rates by 25 basis points to 4.25% Thursday as the central bank's inflation projections indicate it could soon pause its rate rise cycle, IG says. The BOE might pause rate rises given its expectations that inflation will fall sharply over the rest of this year, IG analyst Chris Beauchamp says in a note. "Traders are right to be sceptical on this, and as with last night's Federal Reserve [decision] it seems there will be a much more meeting-by-meeting approach, rather than risking credibility by sticking dogmatically to a set path." GBP/USD is last up 0.4% at 1.2313 and EUR/GBP falls 0.1% to 0.8844. (renae.dyer@wsj.com)

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UK Economy Needs New Dynamics to Overcome Underperformance

1256 GMT - The U.K. is in an economic "danger zone" and needs bold plans to break a high tax and low growth loop, Charles White Thomson, chief executive officer at Saxo UK, says in a note after the Bank of England raised the bank rate by 25 basis points to 4.25%. "The U.K. continues to underperform its key counterparties and have underserved the majority and their aspirations," he says. He sees the U.K.'s economic situation as increasingly painful and uninspiring, and says no one should be celebrating recent monthly GDP growth of an anaemic 0.3% and the avoidance of a technical recession. In its assessment, the BOE said uncertainties around the financial and economic outlook had risen. (emese.bartha@wsj.com)

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UK Gilt Yields Stay Steady After BOE Rate Rise

1252 GMT - U.K. gilt yields are relatively unchanged after the Bank of England's 25 basis points rate increase as markets expect the BOE to pause rate increases going forward. "In monetary policy terms we are now gradually leaving the theatre of action and entering a period of circumspection," says AJ Bell head of investment analysis Laith Khalaf in a note, "This is likely to mean interest rates plateauing from here, or only modest, less frequent adjustments being made by the central bank," he says. The U.K. 10-year gilt yield last trades at 3.424% compared to 3.422% prior to the BOE announcement. The U.K. 2-year gilt yield last trades at 3.376%, compared to 3.375% beforehand. (miriam.mukuru@wsj.com)

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BOE's Rate Rise Shows Priority Focus on Inflation Fight

1248 GMT - The Bank of England's decision to raise the bank rate by 25 basis points, following in the Federal Reserve's footsteps, shows that the Monetary Policy Committee is focusing on its inflation-fighting mandate rather than financial stability risks, Jessica Hinds, director in Fitch Ratings' economics team, says in a note. This stance "will have surely been cemented by the inflation data earlier this week," she says. While the MPC stated that further tightening will depend on evidence of more persistent inflationary pressures, Fitch Ratings' economics team thinks that the tightness of the labor market will keep services inflation too sticky for the BOE to be confident that it has done enough. (emese.bartha@wsj.com)

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BOE Should Refrain From Guidance Given Inflation Uncertainty

1238 GMT - The Bank of England should refrain from offering forward guidance about its future rate policy, having frequently signaled that they expect interest rates to peak at current levels but then inflation data has proved otherwise, Karen Ward, chief market strategist, EMEA, at J.P. Morgan Asset Management says in a note. After February inflation surprised to the upside, the persistence of inflation looks more worrying in the U.K. than elsewhere, reflecting that a combination of Brexit, the Covid-19 pandemic and an energy crisis appears to have done more lasting damage to the supply side of the economy, she says. The central bank should leave itself degrees of freedom by simply stating they will do whatever it takes to bring inflation down, she says. (edward.frankl@wsj.com)

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BOE Could Lift Rates Further But End of Cycle Nearing

1236 GMT - The Bank of England could raise interest rates further after Thursday's 25 basis points rise but the end of monetary policy tightening is nearing, Charles Stanley says. The U.K. government's budget earlier this month showed the Office for Budget Responsibility expects inflation to fall to 2.9% by the end of 2023, compared to 10.4% in February, but this target looks ambitious, Charles Stanley chief investment officer Garry White says in a note. "This means there may be at least one more rate rise ahead, but we are probably close to the top of the cycle," he says. "However, if this 2.9% target is to be met, interest rates may not be coming down for quite some time." (renae.dyer@wsj.com)

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BOE's Rate Rise Could Be the Last Before a Pause

1235 GMT - The Bank of England "had no choice" but to raise interest rates by 25 basis points to 4.25% on Thursday given high inflation but this could mark the final increase before a pause, says Richard Carter, head of fixed interest research at Quilter Cheviot, in a note. "It will be hoped this will be the final rate hike before a period of pause to assess how the rate hikes are taking effect," he says, noting that the economy is expected to contract this year. "Inflation is proving sticky so it is hard to say if this is the end, but consumers up and down the country will be hoping for some relief when the Bank of England sets rates again in May." (jessica.fleetham@wsj.com)

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BOE Will Soon Need to Focus on Banking Sector, Credit Conditions

1235 GMT - The need to counteract high inflation is "paramount" for the Bank of England, which raised interest rates by 25 basis points on Thursday, but it will likely need to turn its focus to banking sector problems and tightening credit conditions, says Neil Birrell, chief investment officer at Premier Miton Investors in a note. "Policy needs to remain flexible," he says. "None of those issues are going away in a hurry and the tightrope they are walking with policy has got tighter over the last two weeks." (emese.bartha@wsj.com)

Contact: London NewsPlus, Dow Jones Newswires; paul.larkins@wsj.com.

(END) Dow Jones Newswires

March 23, 2023 13:19 ET (17:19 GMT)

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