30Y Gilt-Bund Yield Spread to Widen as UK Interest Rates Rise
1119 GMT - The gap, or spread, between yields on 30-year gilts and those of their German counterparts is set to widen as interest rates in the U.K. rise, says Mizuho. This spread widened four basis points on Monday and it has more "room to run," analysts at the bank say. The Japanese bank's stance is underpinned in its structural view that the difference in yields will widen as interest rates rise in the U.K., with the Bank of England widely expected to raise its base rate by 25 basis points to 0.5% this week. The 30-year gilt-bund spread is last at 115.1 basis points, according to Tradeweb. (lorena.ruibal@wsj.com)
Companies News:
Tesco to Close Down Jack's Brand, 130 Jobs to Be Axed
Tesco PLC said Tuesday that it will close down the Jack's brand, and that 130 jobs will be affected upon the closing of seven of the brand's stores in the coming months.
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Mears Sees 2021 Revenue, Adjusted Pretax Profit Ahead of Consensus
Mears Group PLC said Tuesday that it expects to report revenue and adjusted pretax profit for 2021 that are ahead of market consensus after a strong end to the year.
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SDX Energy to Sell 33% of South Disouq for $5.5 Mln, Return $3 Mln via Buyback
SDX Energy PLC said Tuesday that it has agreed to sell a 33% stake in its South Disouq gas concession in Egypt for $5.5 million, and will return up to $3.0 million to shareholders via a share buyback.
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James Halstead Expects 1H Profit to Be Affected by Increased Costs
James Halstead PLC said Monday that it expects profit for the first half of fiscal 2022 to be slightly affected by continued higher costs, though expectations for the full-year performance remain positive.
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A.G. Barr Expects 18% Rise in Revenue for FY 2022
A.G. Barr PLC said Tuesday that it is confident about delivering revenue and profit growth in fiscal 2022 as it expects an 18% rise in revenue and sees pretax profit ahead of previous expectations.
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Inspecs Sees 2021 Performance In Line Despite Covid-19 Challenges
Inspecs Group PLC said Tuesday that it expects to report performance in line with management expectations for 2021 despite Covid-19 restrictions experienced during the period.
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Vast Resources Retreats From Deal to Buy Gem Diamonds' Mine in Botswana
Vast Resources PLC said Tuesday that it won't proceed with the agreement to acquire Gem Diamonds Ltd.'s Ghaghoo diamond mine in Botswana.
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Warpaint London Expects 2021 Adjusted Pretax Profit Ahead of Market Views
Warpaint London PLC said Tuesday that it expects 2021 adjusted pretax profit and adjusted Ebitda to be ahead of market expectations, and that it had a strong start to 2022.
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UK Grocery Sales Fall as Rising Prices Drive Changing Consumer Habits
U.K grocery sales declined in the past three months, despite remaining 8% higher than prepandemic levels, according to the latest report by Kantar.
Market Talk:
Cineworld Saga Could Be at Home in Marvel Universe
1053 GMT - The saga at Cineworld Group is starting to feel like a rival to the Marvel Cinematic Universe owing to its longevity, AJ Bell says. The U.K.-listed cinema operator is looking for clemency from former Regal Entertainment shareholders over payment obligations. "Cineworld should be a beneficiary of cinema's revival in the wake of the pandemic but whether the market will recognize this given the mess the company finds itself in is open to question," AJ Bell investment director Russ Mould says. Shares in the company trade down 1.3% at 38.75 pence. (kyle.morris@dowjones.com)
A.G. Barr Profit Momentum Set to Continue
1051 GMT - A.G. Barr's performance update reiterates views that the group has the ability to increase sales and profit again in fiscal 2023, Liberum Capital says. The London-listed drinks company--which houses IRN-BRU, Rubicon and Funkin among its brands--forecasts revenue for fiscal 2022 of around GBP267 million, which is GBP3 million above expectations and represents the third upgrade in six months, the U.K. investment bank says. Liberum has a buy rating on the stock and a target price of 655.0 pence. Shares are up 1% at 500.0 pence. (michael.susin@wsj.com)
Mears an Attractive Investment Case, Says Peel Hunt
1020 GMT - Mears Group's shares are materially undervalued given the compounding free cash flow and growth opportunities, Peel Hunt says. "The proactive contract reshaping, the withdrawal from capital-intensive activities, strategic disposals and operational self-help, leaves Mears as a market-leading, focused and low capital-intensive housing services solutions provider," the U.K. brokerage says. Mears is an attractive investment case that will deliver appealing organic growth with high sustainable cash conversion. Peel Hunt has a buy rating on the stock with a target price of 275 pence. Shares trade up 3.3% at 202 pence. (kyle.morris@dowjones.com)
AG Barr Brews Strong Performance as it Beats Pre-Pandemic Levels
1019 GMT - AG Barr's expectations of FY 2022 revenue at around GBP267 million despite the Omicron variant's impact on hospitality beats previously raised guidance but--most importantly--beats the pre-pandemic level of GBP256 million, Shore Capital says. The U.K. investment group says the London-listed drinks company--which houses IRN-BRU, Rubicon and Funkin among its brands--showed a robust outcome while handling inflationary headwinds through a combination of cost control and price adjustment. Shore capital has a price target of 496 pence on the stock. Shares are up 2% at 505.0 pence. (michael.susin@wsj.com)
Mears an Attractive Investment Case, Says Peel Hunt
1020 GMT - Mears Group's shares are materially undervalued given the compounding free cash flow and growth opportunities, Peel Hunt says. "The proactive contract reshaping, the withdrawal from capital-intensive activities, strategic disposals and operational self-help, leaves Mears as a market-leading, focused and low capital-intensive housing services solutions provider," the U.K. brokerage says. Mears is an attractive investment case that will deliver appealing organic growth with high sustainable cash conversion. Peel Hunt has a buy rating on the stock with a target price of 275 pence. Shares trade up 3.3% at 202 pence. (kyle.morris@dowjones.com)
Contact: London NewsPlus, Dow Jones Newswires; Dow Jones Newswires; paul.larkins@wsj.com
(END) Dow Jones Newswires
02-01-22 0700ET
