SONIA Illiquidity Could Explain Disconnect in BOE Peak Rate Pricing

1207 GMT - The illiqiud nature of U.K.'s Sterling Overnight Index Average (SONIA) contracts could be behind the disconnect between market pricing of the Bank of England's peak rate and economists' consensus expectations, say Rabobank Research team in a note. Markets and economists revised up their BOE terminal rate expectations after recent U.K. inflation and labor market data came in stronger-than-expected, raising expectations of more BOE rate increases. Markets are pricing in a terminal rate of 6.29% while the economists' consensus forecast stands at around 5.40%, Rabobank says. The BOE's Bank Rate is currently 5.0%. (miriam.mukuru@wsj.com)

COMPANIES NEWS:

Revolution Beauty Shares to Be Restored After Board Reappointed

Revolution Beauty Group said Wednesday that its shares will be restored to trading on London's alternative market after the sole remaining nonexecutive director re-appointed directors that failed to secure enough votes for re-election at its annual general meeting.

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Warpaint London Sees Higher 1H Sales After Strong Performance

Warpaint London said Wednesday that its performance over the first half of the year has been strong and that it expects to report 43% higher sales than for the same period last year.

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Mulberry FY 2023 Pretax Profit Fell on Higher Costs, Cuts Dividend

Mulberry Group on Wednesday posted a drop in pretax profit for fiscal 2023 partly due to higher operating expenses and said revenue for the first quarter of fiscal 2024 is ahead of the comparable period.

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Various Eateries Sees FY 2023 Sales Meeting Market Views but Margins Look Pressured

Various Eateries said Wednesday that while it expects fiscal 2023 sales to broadly meet market views, several factors have hit its bottom-line performance more than previously expected, and that it expects pressure on its earnings margins.

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Vertu Motors Three-Month Performance Beats Comparable Period, Boosted by Helston Buy

Vertu Motors said Wednesday that trading profit for the three months ended May 31 has been above the same levels last year, boosted by the acquisition of Helston Garages and despite inflation-related cost headwinds.

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Molecular Energies Plans IPO for Alternative-Energies Division

Molecular Energies said Wednesday that it plans to spin out and list its alternative-energies division Green House Capital on the AIM stock exchange in an initial public offering in the latter part of the year.

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ProCook Swung to Pretax Loss in FY 2023 on Inflationary Pressures

ProCook Group on Wednesday said it swung to a pretax loss in fiscal 2023 on lower sales, gross margin impacts and inflationary cost pressures, and that difficult trading conditions have carried on into the new fiscal year.

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Location Sciences Agrees to Potential Reverse Takeover of Sorted; Shares Suspended

Location Sciences Group said Wednesday that it has entered nonbinding terms to carry out a potential reverse takeover of Sorted Holdings Ltd., and as a result its shares have been suspended from trading.

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Marechale Capital Raises GBP235,800 via Premium Share Subscription

Marechale Capital said Wednesday that it has raised 235,800 pounds ($300,668) via a premium share subscription and will use the money toward investment and co-investment opportunities.

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Bluejay Mining Shares Fall After Discount Fundraising

Shares in Bluejay Mining fell Wednesday after the company said that it has raised 1.3 million pounds ($1.7 million) through a share placing at a price of 1.75 pence a share, representing a 21% discount.

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Lok 'n Store Sees 2H Revenue Rising 10.5% On-Year

Lok 'n Store Group said Wednesday that business continues to be buoyant with second-half revenue expected to be up 10.5% on-year.

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Nanoco Group Gets Call to Remove Board

Nanoco Group said Wednesday that it has received a request from shareholders owning 5.02% of its issued share capital to call a meeting to remove the board--including the chairman, chief executive officer, chief finance officer and chief technology officer.

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Diversified Energy Sells US Central Region Assets for Around $40 Mln

Diversified Energy said Wednesday that it has sold assets in its Central Region--Oklahoma, Texas, Louisiana--for a gross consideration of around $40 million.

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One Media 1H Profit Slipped on Increased Investments; Revenue Rose

One Media iP Group said Wednesday that first-half pretax profit fell on increased investment, though revenue rose, and said its outlook for the industry is positive.

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Aferian Shares Fall After Lower 1H Revenue Guidance

Aferian shares on Wednesday fell 19% after the company said it expects its revenue for the first half of fiscal 2023 to almost halve on year.

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EKF Diagnostics CFO to Step Down

EKF Diagnostics Holdings on Wednesday said Marc Davies will stand down as chief financial officer to pursue other opportunities.

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Golden Rock Notes Share Price Rise; Confirms Early Takeover Talks

Golden Rock Global said Wednesday that it has noticed a recent rise in its share price and said while it wasn't aware of any reason for the increase, it was in early discussions with a number of parties over potential acquisitions.

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Beowulf Mining Names Ed Bowie as CEO

Beowulf Mining said Wednesday that it has appointed Ed Bowie as chief executive officer from Aug. 7.

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Instem's Executive Pay, Auditor Reappointment Get Low Shareholder Support at AGM

Instem on Wednesday said its resolutions on directors' remuneration and the reappointment of its auditors were approved with low shareholder support at the annual general meeting.

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Zenova Group Shuffles Board as CEO, CFO Roles Shift

Zenova Group said Wednesday that it has shaken up his board, including Chief Executive Officer Tony Crawley stepping down from the role to take on the position of sales project director, and Chief Financial Officer Thomas Melchior becoming interim CEO with immediate effect.

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Predator Oil & Gas Fall On Discount Fundraising

Shares in Predator Oil & Gas tumbled on Wednesday after the company said it will raise 1.9 million pounds ($2.4 million) in a shares placing at a 19% discount.

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Woodbois Shares Rise on GBP6 Mln Share Subscription, Financing Package

Woodbois Ltd. shares rose Wednesday after it said it has raised 6 million pounds ($7.7 million) through a discount share subscription, satisfying a cash shortfall and forming part of a wider financing package.

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Boots to Close 300 Stores; 3Q Sales Rose

U.K. pharmacy chain Boots said Wednesday that it will close 300 stores over the next twelve months.

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AMTE Power Says It Is Considering All Options to Raise Funds, Including Selling Business

AMTE Power said Wednesday that it is considering all options, including a sale of the business, and said if it can't secure funding within the next three weeks prospects for value recovery by shareholders would be uncertain.

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Thames Water Says It Is Working With Shareholders for Equity Funding

Thames Water said Wednesday that it has noted recent press speculation raising concerns the U.K. government and regulators were discussing contingency plans if it collapsed, and said it continues to work constructively with shareholders over further funding.

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WANdisco Delays Publication of 2022 Results; Equity Fundraise Planned for July 3

WANdisco said Wednesday that it will delay publication of results for 2022 to July 4, as the auditor has requested more time to complete procedures, and that is planning to launch a $30 million equity fundraise in early July.

MARKET TALK:

AB Foods Enters Into Earnings Growth Period After Inflationary Storm

1148 GMT - AB Foods has passed through the worst of cost inflationary pressures while a number of factors are likely to drive into a period of significant earnings growth, Liberum analysts Anubhav Malhotra and Wayne Brown say in a note after raising their rating on the stock to buy from hold. The British conglomerate's store-opening acceleration in established markets will increase average selling space by around 6% a year for the next four to five years, with the Eastern Europe market representing a significant growth opportunity, they say. The group has also further margin recovery at Primark, grocery and sugar businesses, the analysts note. AB Foods' new capital allocation policy from FY 2024 can drive value, given the possibility for special dividends or buybacks, they add. (michael.susin@wsj.com)

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Diageo's Diddy Dispute Could Lead to Lengthy Legal Battle

1127 GMT - Diageo ending its relationship with Sean "Diddy" Combs could drag both sides into a lengthy legal battle, head of investment at Interactive Investor Victoria Scholar says. The rapper sued the London-based maker of Johnnie Walker Scotch whisky, Guinness stout and Smirnoff vodka, accusing it of neglecting the DeLeón tequila brand they co-own. Combs also alleged the group wasn't allocating enough funds compared with other celebrity brands and made claims of racial discrimination. Diageo said the allegations are false and reckless and described the accusations of racism defamatory and disparaging, Scholar highlights. (michael.susin@wsj.com)

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ProCook's Plans Whet Appetite for Future

1112 GMT - ProCook is set to serve up a tasty future with exciting plans to increase brand recognition,conversion and customer recruitment, Peel Hunt says in a note after the U.K. kitchenware brand posted a pretax loss in line with expectations for fiscal 2023. ProCook, peers and the industry as a whole have had a tough year of transition, and coming out of it "management has a plethora of good ideas...and we are encouraged, as cost savings fend off some persistent headwinds," the analysts write. ProCook's current performance is steady if not spectacular, they say. Peel Hunt rates the stock buy with a 75-pence price target. (elena.vardon@wsj.com)

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06-28-23 0828ET