Risks to UK's Inflation Outlook Remain High
1052 GMT - Risks to the U.K.'s inflation outlook remain too high even after official data showed inflation rate declined to 10.1% in January from 10.5% the previous month, say Mizuho analysts in a note. The Bank of England is likely to raise the bank rate by 25 basis points in March as inflation risks are still too high to ignore, the analysts say. "The decline in services inflation is not widespread enough to call it quits." (miriam.mukuru@wsj.com)
Companies News:
Centrica Swung to 2022 Net Loss on Negative Remeasurements; Extends Buyback
Centrica PLC said Thursday that it swung to a net loss in 2022 on negative remeasurements of energy contracts, restarted its final dividend and extended its share buyback program.
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RELX 2022 Pretax Profit Rose But Failed to Meet Consensus
RELX PLC said Thursday that 2022 pretax profit rose due to higher adjusted pretax profit but failed to meet consensus, and that momentum remained strong across the group.
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SSP Group Had Strong Start to FY 2023 Boosted by Travel Recovery, Contracts
SSP Group PLC said Thursday that it has had a strong start to the new fiscal year with revenue exceeding pre-pandemic 2019 levels, driven by a continued recovery in passenger numbers, with strong demand over the holiday season, and new contracts.
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M.J. Gleeson 1H Profit, Revenue Fell on Land Unit Slip; Sees Reservations Improving
M.J. Gleeson PLC said Thursday that its first-half pretax profit and revenue fell on a drop in its Land unit profits, and said reservation rates are recovering.
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OnTheMarket Shareholder to Sell 3.1 Mln Shares at 76 Pence Each
OnTheMarket PLC said Thursday that Link Market Services is selling 3.1 million of the company's shares on behalf of Morgan Ross at 76 pence (91 cents) each.
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Indivior Swung to 4Q Pretax Loss on Exceptional Litigation Provision
Indivior PLC said Thursday that it swung to a fourth-quarter pretax loss after booking an exceptional provision, and that it expects 2023 to be another year of progress.
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Moneysupermarket.com 2022 Pretax Profit Rose On Travel Recovery, Money Volumes
Moneysupermarket.com Group PLC on Thursday posted an increase in its 2022 pretax profit driven by recovery in travel channels and strong trading volumes in money, and said it is confident in meeting views for the year ahead.
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Centrica Swung to 2022 Net Loss Although Adjusted Profit Soared; Extends Buyback -- Update
Centrica PLC said Thursday that it swung to a net loss in 2022 on negative remeasurements of energy contracts, though adjusted profits soared, restarted its final dividend and will extend its share-buyback program.
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Creo Medical Seeking to Raise GBP30.2 Mln to Maintain Business Momentum
Creo Medical Group PLC said Thursday that it is planning to raise around 30.2 million pounds ($36.3 million) via a share placing, subscription and shareholder open offer and will use the money to maintain momentum in the business.
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Kerry Group 2022 Profit Fell Despite Increased Revenue; Expects Growth in 2023
Kerry Group PLC said Thursday that its 2022 pretax profit fell although revenue rose, and that it expects to achieve growth in 2023.
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Bank of Georgia Increases Share Buyback Program, to Recommend Dividend
Bank of Georgia Group PLC on Thursday said that its board has approved an up to 148-million Georgian lari ($55.2 million) increase in its share buyback and cancellation program and that it intends to recommend a final dividend of GEL5.8 per share payable in pounds.
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Jaywing Shares Fall on Expected FY 2023 Earnings Miss, Revenue Slip
Jaywing PLC shares fell Thursday after the company said it expects fiscal 2023 earnings to rise but remain below market expectations, and revenue to slip on delayed client spending.
Market Talk:
Centrica's FY Tops Hopes as Gas Production Arm Shines
1157 GMT - Centrica's annual results were well ahead of expectations despite lower profits at U.K. energy retailer British Gas, Hargreaves Lansdown says. While group adjusted operating profit rose to more than GBP2.8 billion from GBP392m a year ago, British Gas Energy's adjusted operating profit fell 39% to GBP72 million, due partly to the company spending GBP75m on customer support measures, HL says. "The huge dichotomy between a group that makes billions and British Gas making millions is because the money is being made in the North Sea and beyond, where the energy is brought out of the ground at high prices," HL's head of equity funds Steve Clayton writes. "The figures, which were well ahead of expectations, impressed the market." Shares rise 5%. (philip.waller@wsj.com)
RELX's Growth Look Sustainable
1156 GMT - RELX's legal and STM growth accelerated to 5% and 4% respectively and such output looks sustainable given increased weighting and growth of data and analytics, J.P.Morgan Cazenove analysts say in a research note. This is supported by the London-listed information-and-analytics group's outlook, with the company expecting another year of above-trend growth in 2023, they say. Accelerated growth warrants a re-rating, with RELX having closed the growth gap to peers, they add. "We would expect consensus upgrades supported by the 2022 beat, above-trend underlying growth, an almost complete exhibitions recovery and a bigger buy back," the analysts say. The brokerage has an overweight rating and shares trade up 2.8% at 2,517.00 pence. (kyle.morris@dowjones.com)
BOE Rate Rise in March Could Be Its Last
1121 GMT - The Bank of England is likely to deliver one more interest rate rise of 25 basis points in March before ending policy tightening, UBS Global Wealth Management says. The larger-than-expected fall in January U.K. inflation is a "welcome development" for the BOE, UBS economist Anna Titareva says in a note. "However, we think that in order to significantly ease concerns about inflation persistence, the Monetary Policy Committee would need to see signs of easing in services inflation beyond seasonal items (travel and recreation) which was anticipated by the MPC." Meanwhile, the latest employment data showed wage growth accelerated and the BOE sees significant upside risks to the inflation outlook so should lift rates once more in March, Titareva says. (renae.dyer@wsj.com)
Centrica Shares Look a Buy as Higher Energy Prices Boost Profits
1119 GMT - Centrica's 2022 earnings outperformed market forecasts as higher energy prices following the war in Ukraine trebled profits, Interactive Investor says. The energy group's costs are being raised by inflation, as with other businesses, and recent weather--with its unseasonal swings-- are causing uncertainty over customer energy demand, Interactive Investor investment writer Keith Bowman says. On the flip side, strong cashflows have pushed net debt to net cash, the dividend is reinstated, and the company is looking at opportunities to invest in energy transition, Bowman says. "For now, and with the consensus analyst estimate of fair value standing at over 130 pence per share, market opinion currently points towards a buy," Bowman says. Shares are up 5.2% at 103.7 pence. (joseph.hoppe@wsj.com)
M.J. Gleeson Could See Premium Share Value Returning
1050 GMT - M.J. Gleeson's first-half results met expectations as overhead recovery suffered from slower sales after the September mini-budget, Liberum says. The house builder's premium valuation seen before the Covid-19 pandemic has been eroded in the last three years, but could be restored once volume growth returns, and encouraging sales rates and forward looking indicators are improving, Liberum analysts Charlie Campbell and Edward Prest say in a research note. "We leave our 2023 estimates unchanged as guidance is narrowed and the sales rates have improved in the second half, albeit still quiet for January," the brokerage says. Liberum retains its buy rating and 560 pence price target on the stock. Shares are up 4.7% at 103.2 pence. (joseph.hoppe@wsj.com)
SSP Seen Returning to Historic Growth Trends
1042 GMT - SSP showed an encouraging trading update for the first four months of fiscal 2023, Shore Capital analysts Greg Johnson and Clive Black say in a note. The food-and-beverage company's update was seen as supportive of fiscal 2023 earnings before interest, taxes, depreciation and amortization improving to a GBP250 million-GBP280 million range, and to GBP325 million-GBP375 million in fiscal 2024 as the global travel market recovers and its pipeline continues growing, the analysts say. "Beyond the recovery in passenger volumes, margins and mobilization of contracts, we see a return to historic growth trends: mid-to-high single-digit annual revenue growth, modest annual margin accretion and a capital allocation framework supporting shareholder returns," they say. Shore Capital has SSP as a house stock. Shares are down 1.2% at 266.40 pence. (anthony.orunagoriainoff@dowjones.com)
RELX's Strong Growth Driven by M&A
1033 GMT - RELX reported strong 2022 results, with revenue 11% higher and operating profit up 14% on a constant currency basis, ING's Jan Frederik Slijkerman says in a research note. The London-listed information-and-analytics group shows strong growth, driven by M&A, and operates in an unregulated sector, Slijkerman points out, adding that the brokerage continues to like the company. All divisions performed well and the exhibition segment has recovered from the impact of Covid-19 restrictions, the analyst says. Shares trade up 2.9% at 2,520.00 pence. (kyle.morris@dowjones.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
02-16-23 0736ET
