UK Labor Market, Inflation Data Could Offer Upside to Gilts
1310 GMT - There is potential for U.K. gilts to rally further if the labour market and inflation data due to be published on Tuesday and Wednesday respectively show easing inflationary pressure and a less tight labor market, Mizuho analysts say in a note. "There is room to see a bit more upside in Gilts if data warrants it," they say. U.K. gilt yields, which move inversely to price, have mostly dropped since the start of 2023 as gilt prices rally. Yield on the 10-year U.K. gilt is down 21 basis points to 3.427% and yield on the 5-year gilt is down 24bps to 3.368% according to Tradeweb. Nonetheless, yield on the U.K. 2-year gilt is up 6bps to 3.636%. (miriam.mukuru@wsj.com)
Companies News:
Lok 'n Store Group 1H Revenue Grew on Higher Occupancy, Pricing
Lok 'n Store Group PLC on Monday said its first-half revenue grew on buoyant business during the period as it expects its net asset value to be stable at the end of the year.
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Brickability Sees FY 2023 Adjusted Earnings Beating Market Views
Brickability Group PLC said Monday that it expects to report fiscal 2023 adjusted earnings ahead of market views and remains confident in its outlook.
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Mkango Resources to Raise GBP3.5 Mln for Projects
Mkango Resources Ltd. said it conditionally raised 3.5 million pounds ($4.2 million) via a discounted placing and a subscription, and that it will use this develop various projects and as working capital.
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MJ Hudson Auditor Resigns Citing Lost Trust, Confidence
MJ Hudson Group PLC said Monday that its auditor Ernst & Young LLP has resigned, citing lost trust and confidence.
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DX (Group) Receives Claim Over Obtaining of Confidential Information
DX (Group) PLC said Monday that it received a claim on Friday from Tuffnells Parcels Express relating to confidential competitor information being obtained by DX in the past.
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Bidstack 2022 Revenue More Than Doubled; Provided Security Over Azerion Claim
Bidstack Group PLC said Monday that it expects to report 2022 more-than-doubled revenue with an improved gross margin, and it has been provided security in the initial part of its claim for damages from Azerion Technology BV.
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FRP Advisory Sees FY 2023 Results in Line With Views, Declares 3Q Dividend
FRP Advisory Group PLC on Monday said it expects its fiscal 2023 revenue and core earnings to be broadly in line with market expectations as it declared a third-quarter dividend.
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Goldplat Names Gerard Kemp Chairman as Gerard Kisbey-Green Steps Down
Goldplat PLC said Monday that Gerard Kemp has been appointed nonexecutive chairman with immediate effect, and that Gerard Kisbey-Green will stand down as but remain as an independent nonexecutive director.
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Unikmind Holdings Launches $1.51 Bln Offer for Kape Technologies
Unikmind Holdings Ltd. on Monday tabled a 1.25 billion pound ($1.51 billion) offer for Kape Technologies PLC and said regardless of the outcome to its proposal it would call a meeting of the digital-security company seeking its delisting from London's junior AIM.
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Net Zero Infrastructure Requests Its Share Listing to Be Restored
Net Zero Infrastructure PLC said Monday that it has requested its listing be restored to the standard segment of the London Stock Exchange, after the publication of its fiscal 2022 and fiscal 2023 first-half results.
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Mark Allen to Buy Bonhill's UK, Asia Businesses
Mark Allen Group said Monday that it has agreed to buy the U.K. and Asia brands of wealth-management publishing company Bonhill Group PLC for 6.5 million pounds ($7.8 million).
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Aptamer Names Rob Quinn as Incoming CFO
Aptamer Group PLC said Monday that it has appointed Rob Quinn as chief financial officer, effective from March 1, taking over from interim CFO Jenny Cutler.
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BH Macro Raises GBP315 Mln for Investment in Fund
BH Macro Ltd. said Monday that it has raised around 315 million pounds ($379.9 million) through an initial placing of shares, intermediaries offer and offer for subscription, to be invested in Brevan Howard Master Fund Ltd.
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Dolphin Capital Chairman Martin Adams Resigns, Replaced by Sean Hurst
Dolphin Capital Investors Ltd. said Monday that Chairman Martin Adams resigned from the board with immediate effect, and that Sean Hurst has been appointed director and elected new Chairman by the board with immediate effect.
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Non-Standard Finance Shares Fall After FCA Redress Talks Continue
Shares in Non-Standard Finance PLC drop 12% on Monday after the group said talks with the U.K. Financial Conduct Authority over a redress plan related to its guarantor-loans division continue and that it is working on an alternative transaction.
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Cineworld Rival Vue International Preparing Takeover Bid, Sky News Reports
--Cineworld Vue International has lined up financial backing from new shareholders Barings LLC and Farallon Capital Management LLC to mount a takeover bid, according to Sky News.
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Playtech Makes $9.2 Mln Investment in NorthStar Gaming, Extends Commercial Arrangements
Playtech PLC said Monday that it has made a 12.3 million Canadian-dollar ($9.2 million) strategic investment in Ontario-based online casino and sportsbook operator NorthStar Gaming Inc. and extended its commercial arrangements with the company.
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Cineworld Group Shares Rise on Vue Takeover Report
Shares of Cineworld Group PLC rose as much as 41% on Monday after a report that rival Vue International was planning to put forward a takeover bid for the London-listed company.
Market Talk:
UK Trade Data Underscore Structural Headwinds Facing Pound
1243 GMT - The U.K.'s latest trade data highlight the structural headwinds the pound is likely to face over the medium-term, Bank of America says. "Whilst sterling has shrugged off the news and fallen into line with broader G10 FX trends, the trend deterioration in the U.K.'s external trade position remains a worrying one and leaves the currency vulnerable to the kind of pressure seen in September 2022," BofA forex strategist Kamal Sharma says in a note. Sterling fell sharply in September after former U.K. Treasury chief Kwasi Kwarteng announced a raft of unfunded tax cuts. The U.K.'s total trade in goods deficit, excluding precious metals, widened by GBP2.3 billion to GBP23.6 billion in December, the Office for National Statistics reported Friday. (renae.dyer@wsj.com)
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National Grid Looks Attractive, UK Water Is Balanced
1311 GMT - National Grid shares look appealing, but U.K. water stocks appear more fully valued, RBC Capital Markets says. National Grid is clearly expanding, it has ongoing scope to do better than others in the sector and its stock valuation looks attractive, RBC says, resuming coverage of the U.K. energy-network operator with an outperform rating and price target of 1250 pence. Shares rise 2% to 1053 pence. Still, a recovery in valuations of U.K. water stocks relative to the sector leaves them looking more balanced, RBC says, downgrading Severn Trent and Pennon to sector perform and keeping a sector-perform rating on United Utilities. (philip.waller@wsj.com)
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Devolver Digital Shares Now Look Good Value
1326 GMT - Devolver Digital's share price has fallen around 40% since mid-January and its valuation now appears more appropriate, Shore Capital research analyst Katie Cousins says in a note. The videogame publisher has suffered continuing headwinds after disappointing major game launches last year and weaker-than-expected December performance, she says. "This has led to downgrades to our forecasts and uncertainty over the future performance of both its back catalogue and new titles. That being said, the share price has fallen almost 40% since our last note, 13 January 2023, and we believe DEVO's valuation now appears more appropriate versus peers," Cousins notes. Shore Capital upgrades its recommendation on the stock from sell to hold. Shares are up 4.4% at 35.50 pence. (kyle.morris@dowjones.com)
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Vesuvius Shares Look Cheap Given Upbeat Capital Outlook
1340 GMT - Vesuvius shares look cheap, Panmure Gordon says, starting coverage of the engineered ceramics maker with a buy recommendation and 565 pence target price. The company, which supplies its products to steel-makers and foundries among other industrial customers, is trading at a price-earnings rating of 7.7x, well below its average forward PE of 13x over the past decade, Panmure says, adding that rising interest rates will inevitably repair supply chains and boost capital outside China. "We would be more bullish if management used the free cashflow to help consolidate a fragmented refractory industry rather than focus on dividends," Panmure analysts say in a note. Shares rise 1% to 405 pence. (philip.waller@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
02-13-23 0903ET
