Hard to See Reason for Sterling to Fall For Now

1142 GMT - With U.K. inflation very high and interest rates looking likely to rise further, sterling is likely to stay strong, says ING currency analyst Francesco Pesole in a note. "At least two more 25bp hikes [by the Bank of England] are on the cards," he says. "For now, it remains hard to see a sustained GBP downtrend." Later this year the inflation trend should improve, however, enabling the pound to fall as rate expectations come down, he says. Sterling rises on Friday, helped by a broadly weak dollar. GBP/USD rises 0.3% to 1.2770 while EUR/GBP falls 0.2% to 0.8532. (jessica.fleetham@wsj.com)

COMPANIES NEWS:

JD Sports to Buy Outstanding Stake in Iberian Sports Retail for EUR500 Mln

JD Sports Fashion said Friday that it plans to buy the 49.98% stake of Iberian Sports Retail Group it doesn't already own, for a total cash consideration of 500.1 million euros ($544.7 million).

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M.J. Gleeson FY 2023 Expected to Meet Views; New Year Looks Encouraging

M.J. Gleeson said Friday that it expects its fiscal 2023 results to meet expectations, as higher average selling price offset lower volumes, and said it has encouraging prospects for fiscal 2024.

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Quadrise to Raise up to GBP4 Mln to Progress Operations, Projects

Quadrise said Friday that it is seeking to raise up to 4 million pounds ($5.1 million) via a share placing and open offer and will use the money to progress operations and projects through to at least February 2024.

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Shell to Book Up to $3 Bln of 2Q Impairments, Upstream Production Fell on Quarter

Shell said Friday that it expects to book after-tax impairments of up to $3 billion for the second quarter of 2023, and that upstream production declined from the first three months of the year.

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YouGov Raises GBP51.2 Mln via Share Placing at 920 Pence

YouGov said Friday that it has now raised 51.2 million pounds ($65.2 million) via the share placing first announced late Thursday.

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Lok 'n Store Raises GBP20.5 Mln via Oversubscribed Placing, Retail Offer

Lok 'n Store Group said Friday that it has now raised 20.5 million pounds ($26.1 million) via the placing and retail offer outlined late Thursday, more than planned.

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Vast Resources to Raise GBP1.7 Mln via Discounted Placing

Vast Resources said Friday it will raise 1.7 million pounds ($2.2 million) via a discounted placing and that it will use the funds to meet current obligations in Romania and at the corporate level.

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1Spatial Secures New Customers Despite Protracted Sales Cycles

1Spatial said Friday that it has secured several new customers despite protracted sales cycles, and that the investments made in fiscal 2023 and at the start of the current fiscal year have helped grow its sales pipeline.

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CMC Markets CFO Euan Marshall to Resign

CMC Markets said Friday that Chief Financial Officer Euan Marshall has resigned with effect from January to become CFO at IntegraFin Holdings.

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Electric Guitar PLC Reverses Into 3radical in GBP3 Mln All-Share Deal

Electric Guitar said Friday that it has agreed buy 3radical for 3 million pounds ($3.8 million) in an all-share deal that is classified as a reverse takeover under London Stock Exchange rules.

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ProCook Names Lee Tappenden as Incoming CEO

ProCook Group said Friday that Lee Tappenden is expected to take over as CEO from early October, succeeding Daniel O'Neill.

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IntegraFin Appoints Euan Marshall CFO

IntegraFin Holdings said Friday that Euan Marshall has been appointed chief financial officer and will join the company once released from his current employment at CMC Markets, where he is CFO.

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OSB to Book Up to GBP180 Mln Interest Rate Reversion Adjustment in 1H Accounts; Shares Fall

Shares of OSB Group fell 17% in early trade on Friday after the company said late Thursday that it expects to book an interest rate reversion adjustment of up to 180 million pounds ($229.4 million) in its half-year accounts.

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Caspian Sunrise Shares Rise on Swing to 2022 Pretax Profit, Lifting of Share Suspension

Shares in Caspian Sunrise rose Friday after the company said it swung to a 2022 pretax profit as revenue rose on strong oil prices, and that the suspension of its shares was lifted earlier in the day.

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Quartix Technologies' CTO Laura Seffino Steps Down From Board to Focus on Development

Quartix Technologies said Friday that Chief Technology Officer Laura Seffino has resigned from the board, to focus on delivering on the company's technology roadmap and continued development of her team.

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Pendragon's COO Martin Casha to Stand Down in November; Role Won't Be Replaced

Pendragon said Friday that Chief Operating Officer Martin Casha will stand down on Nov. 7 to take up a chief executive officer position at Marshall Motor Group, and that it won't replace his role.

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Hornby to Buy 25% of Warlord Games for GBP1.25 Mln; Has Option to Buy Rest

Hornby said Friday that it is buying a 25% share of Warlord Games for 1.25 million pounds ($1.6 million) with an option to buy a majority stake within two years and the rest of the company over time.

MARKET TALK:

Rotork Looks Well Placed; M&A, Buybacks Possible

1245 GMT - Rotork shares rise 2% to 297 pence after Jefferies upgrades the supplier of industrial flow-control systems to buy from hold. The company's medium-term oil & gas outlook looks particularly good and its business growth strategy bodes well, Jefferies says. "While trading continues to throw up additional challenges, we believe Rotork's equity story is attractive, the group looks well positioned over the next few years--arguably more--and it's not inconceivable for M&A/share buybacks to be additional catalysts," Jefferies analysts say in a note. "With the shares currently trading at attractive levels compared to history/relative to 'quality peers', we upgrade to buy with a new 370p price target, up from 350p." (philip.waller@wsj.com)

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Elementis Earnings Outlook Has Picked Up, JPM Says

1240 GMT - Elementis's earnings prospects are improving and the shares look attractive, JPMorgan says, upgrading the chemical company to overweight from neutral. While short-term demand in the sector still looks tough, Elementis's earnings outlook has improved thanks to a possible significant earnings recovery in its talc division and relatively better demand in its personal-care division, JPM says. Material cost savings from the ramp-up of a new lower-cost plant in India and a strong line-up of new business in coatings and personal care should also help, the bank says. "Valuation also looks undemanding," JPM analyst Chetan Udeshi writes, reiterating JPM's 144 pence price target. Shares rise 4% to 104p. (philip.waller@wsj.com)

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AO World's Steady Growth Likely to Prompt Share Buyback

1158 GMT - AO World is likely to benefit from a period of stability, with steady growth, profitability and returns, Peel Hunt analysts say in a note. The electrical retailer has cut low margin sales activity and affiliate vouchers, while delivery charges were introduced, they highlight. Added to that, gross margins are rising while costs ratios decline, the analysts note. This indicates that AO increasing its cash balance over the next three years to GBP100 million, they say. "With no growth capex and revenue investment initiatives on the horizon, we can see AO launching a buyback program sooner rather than later," the analysts add. (michael.susin@wsj.com)


Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

07-07-23 0905ET