The FTSE 100 closed up 0.32% on Thursday at 7,644.78 points as London's blue-chip index still finds support with higher oil prices pushing the stocks of energy heavyweights BP and Shell upward. "Travel and leisure appears to be stuck on the tarmac," CMC Markets analyst Michael Hewson writes in a market comment. In comparison, European markets underwent another lackluster session with U.S. headline inflation and PPI numbers coming in a little hotter than expected and pushing yields higher, Hewson adds.


COMPANIES NEWS:

easyJet to Reinstate Dividends After 4Q Pretax Profit Increase

easyJet said it expects to report a rise in headline pretax profit for the fourth quarter of fiscal 2023, and that it will reinstate dividend payments.

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Dechra Pharmaceuticals Swung to Pretax Loss on Higher Finance Costs

Dechra Pharmaceuticals said it swung to a pretax loss on higher finance costs, but that revenue grew on a strong performance by its EU pharmaceuticals business.

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Wise PLC Upgrades Income Growth Guidance After 2Q Income Rose

Wise PLC said it is upgrading its income growth guidance for fiscal 2024 after a strong start to the year and an increase in second-quarter income.

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Hays 1Q Net Fees Fell 7% on Extended Hiring Processes

Hays said that the group net fees fell in the first quarter of fiscal 2024, and that it expects its conversion rate and operating profit to decline.

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Shield Therapeutics CFO Hans-Peter Rudolf to Step Down

Shield Therapeutics said Chief Financial Officer Hans-Peter Rudolf will step down from the role on Oct. 20 to pursue other opportunities, and said Group Company Controller Paul Spoors will assume additional responsibilities on an interim basis.

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Restaurant Group Shares Jump on GBP506 Mln Takeover Deal

Shares in Restaurant Group surged 38% after the company said it has agreed to an all-cash takeover offer worth around 506 million pounds ($623.1 million) by asset manager Apollo's Rock Bidco.

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Hotel Chocolat FY 2023 Pretax Loss Narrowed Despite Lower Sales Revenue

Hotel Chocolat Group has reported a narrowed pretax loss for fiscal 2023 despite a revenue decline, reflecting a rebalance of pandemic driven e-commerce sales.

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easyJet Delivers Record Performance Over the Summer; To Reinstate Dividends -- Update

easyJet delivered a record financial performance over the summer, allowing for the resumption of dividends and said it expects to report a rise in headline pretax profit for the fourth quarter of fiscal 2023 as demand has remained strong.

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Mobico Group Shares Drop on Guidance Cut; Company Seeks North American Unit Divestment

Shares in Mobico Group fell 21% after the company cut its full-year earnings guidance and suspended its dividend payout as higher costs are slowing down a return to profitability.

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Norcros Revenue Fell on Decreased International Sales

Norcros has reported a decline in group revenue as a result of the challenging demand environment diminishing its international sales.

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Mitie Group Sets Out New FY 2025 to FY 2027 Financial Targets

Mitie Group said it will set out a range of new financial targets, including for earnings and revenue, for fiscal 2025 to fiscal 2027 at its Capital Markets Event.

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Norman Broadbent Shares Up on Revenue, Net Fee Income Rise

Shares in Norman Broadbent rose after it said revenue and net fee income rose in the third quarter despite macroeconomic pressures, and that momentum continues to be strong.

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N. Brown Group Swings to Pretax Loss on Restructuring, Lower Online Sales

N. Brown Group said it swung to a pretax loss on restructuring costs and a lower online orders, caused by cautious consumer behavior and unseasonable weather.

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Marks Electrical Group Margins Hurt by Installation Service Implementation, Inflation

Marks Electrical Group said margins in the first half were hurt after it introduced its own installation service along with distribution-cost inflationary pressures.

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F.W. Thorpe Pretax Profit Rose, But Flags Slower Growth Ahead

F.W. Thorpe said pretax profit and revenue rose in fiscal 2023, partly driven by acquisitions, while it warned of slower revenue growth in the current fiscal year.

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Versarien Shares Fall on Going Concern Warning

Shares in Versarien fell after the company said its ability to operate as a going concern will be at risk if the share-capital reorganization resolutions aren't passed at a general meeting to be held on Oct. 30.

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Workspace Group Sees Strong Demand Driving 2Q Rent Roll Growth

Workspace Group said is rent roll increased in the second quarter, driven by good customer demand and improved pricing.

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Oxford Instruments 1H Revenue Rose; Sees Full Year at Lower End of Market Views

Oxford Instruments sees on-year revenue growth, reflecting particularly strong results in research and discovery, but expects full-year profit on the lower end of market views.

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Brooks Macdonald Sees Positive Flows for FY 2024 After Outflows in 1Q

Brooks Macdonald Group reported net outflows for the first quarter of 2024 as client behavior continued to be affected by high interest rates and market volatility, and reiterated that it expects to report positive flows for the full-year.

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Polar Capital Assets Under Management Fell on Outflows

Polar Capital Holdings posted a drop in its assets under management over the second quarter of fiscal 2024 as net outflows and fund closures offset positive market movements and fund performance.

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Distil Sees Loss Narrow, Revenue Rise on Restructuring, Lower Costs

Distil said its pretax loss narrowed and revenue rose for the first half of the year on the back of its business-remodel strategy despite a challenging business environment.

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Ethernity Networks Suspends Shares, Applies for Israeli Court Order

Ethernity Networks said its shares have been temporarily suspended from trading in London at its request, and that it has applied to court in Israel for a temporary suspension of proceeds order and a meeting of creditors.

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Centamin Narrows Full-Year Production View; Lifts Long-Term Targets for Sukari Mine

Centamin said it backed its full-year guidance on costs and narrowed its production target, and improved its long-term outlook for the Sukari gold mine in Egypt.

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MARKET TALK:

Brooks Macdonald's Share Value Is Too Low Given Sector Opportunities

1335 GMT - The valuation of Brooks Macdonald's shares is simply too low given the ongoing sector consolidation and secular growth offered, Panmure Gordon says in a note. The asset manager reported outflows for its first quarter, as warned, but the three-month period was "not quite as quiet as we had anticipated," analysts Rae Maile and Ross Luckman write. The growth ambitions of the London-listed group aren't included in its estimates, and the current share price even fails to capture the more modest growth they do include in their forecasts, they analysts say. Panmure rates the stock buy with a 3,000 pence target price. Shares, which are down 23% year to date, rise 2.2% to 1,625 pence. (elena.vardon@wsj.com)

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Polar Capital's Share Price Seen Outperforming Sector

1334 GMT - Polar Capital and the wider asset-management sector look undervalued, Equity Development writes in a research note. The decline in the sector seems overdone and Polar's share price could outperform it, given its compelling "deep value" argument, its solid cash position as well as its expected core margin and dividend yield, analyst Paul Bryant writes. The London-listed fund manager posted a slight drop in assets under management over its second quarter. "Pleasingly, the rate of outflows from open-ended technology funds continued to decline, with Polar positioned to benefit from sentiment turning more positive (albeit slowly and cautiously) in the sector," the analyst writes. Equity trims its price target on the stock to 575 pence from 625 pence. Shares slip 2.7% to 425.5 pence. (elena.vardon@wsj.com)

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Johnson Matthey Faces Earnings, Dividend Pressure

1319 GMT - Johnson Matthey faces risks to earnings and its dividend, Berenberg says, downgrading the catalytic-converter maker to hold from buy. Progress made under the company's new chief executive in securing customers for catalyst and hydrogen technology sparked hopes of a turnaround, Berenberg says. Still, doubts about Matthey's ability to increase earnings in the next few years have increased amid factors such as pressure on platinum-group metal prices and the potential impact of higher interest rates on automotive sales, the brokerage says. "Downward earnings momentum and needed investments in growth call into question the mid-term tenability of the 77p/share dividend floor," Berenberg analysts write. Berenberg also cuts its share-price target to 1,650 pence from 2,200 pence. The stock drops 1.2% to 1,537 pence. (philip.waller@wsj.com)

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Hummingbird's Balance Sheet Seen Significantly Improving on New Debt Deal

1308 GMT - Hummingbird Resources' debt refinancing will not only help it post a stronger balance sheet at year-end, but also gives it more flexibility to fully commission the Kouroussa mine in Guinea, Canaccord Genuity analysts Tim Huff and Alex Bedwany write. The gold miner's recent update indicated the commissioning of Kouroussa was going slower than Canaccord had forecast, prompting a 35% reduction to the Canadian investment bank's full-year adjusted Ebitda forecast, now at $43 million. However, the new debt package, which includes $35 million refinanced debt with repayment pushed back at least two quarters, significantly improves its balance sheet, the analysts say in a research note. As such, Canaccord keeps a speculative buy rating on the stock and a 22-pence price target. Shares are up 7.8% at 8.25 pence. (christian.moess@wsj.com)

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easyJet Seen Set to Benefit if Costs Are Kept Down and Fares Up

(MORE TO FOLLOW) Dow Jones Newswires

10-12-23 1230ET