UK Banks Rates Hike Benefit Likely to Be Limited

1005 GMT - The marginal benefit of further interest-rate rises to U.K. banks is likely to be limited and could become a headwind, Shore Capital says in a note after the Chancellor told lenders they are expected to pass on higher interest rates to savers. "Banks will still benefit from the tailwind to income from their huge structural hedges, which only re-price slowly as the hedges are gradually rolled onto new (higher) swap rates," analyst Gary Greenwood writes. The brokerage sees net interest margins at their peak already and assumes they will stabilize rather than substantially reverse. Shore keeps a positive stance on U.K. banks, whose balance sheets are in good shape to withstand potential losses if loan defaults increase, Greenwood says. (elena.vardon@wsj.com)

COMPANIES NEWS:

JD Sports Fashion 1Q North American Businesses Performance Softer; Backs Guidance

JD Sports Fashion said Tuesday that its North American businesses' performance in the first three months of fiscal 2024 was softer and consistent with other businesses in the sector, and backed its guidance for the fiscal year.

---

Grainger Sees Momentum Persisting Heading Into Summer; Occupancy, Rent Improved

Grainger said Tuesday that momentum in the eight months to May 31 is persisting as it moves into the peak summer lettings season, with occupancy and rental growth improving when compared to the end of the first half.

---

Unbound Group Ends Formal Sale Process, Considers Equity Raise

Unbound Group said Tuesday that it has ended its formal sale process after failing to receive any offers that could be put to shareholders, and that it is considering an equity fund raise for up to 2 million pounds ($2.5 million).

---

PZ Cussons Expects One-Off Financial Performance Blow From Nigeria Currency Devaluation

PZ Cussons said Tuesday that it expects to take a one-off hit to its near-term financial performance following the devaluation of the Nigerian naira, but will report a rise in fiscal 2023 revenue and adjusted pretax profit.

---

Aston Martin Says It Is on Track to Meet Financial Targets; Plans $2.5 Bln in New Investment

Aston Martin Lagonda Global Holdings said Tuesday that it is on track to deliver on its 2024-25 financial targets and set out a range of new targets for 2027-28, and said it expects to invest around 2 billion pounds ($2.54 billion) over the next five years.

---

Wise PLC Sees Growth Slowing in FY 2024 After Bumper FY 2023 Earnings

Wise PLC on Tuesday said it sees growth slowing in fiscal 2024 and issued income and earnings guidance for the year as it reported a significant rise in pretax profit for fiscal 2023.

---

Telecom Plus FY 2023 Pretax Profit Rose as Revenue Surged on Higher Energy Prices

Telecom Plus said Tuesday that pretax profit for fiscal 2023 rose as revenue surged on higher energy prices and strong organic growth in customer and service numbers, and that it is well-positioned to scale its insurance business after establishing an in-house broker and insurer.

---

Creo Medical Experiencing Growing Demand; Developing Succession Plan for Chair

Creo Medical Group said Tuesday that it experiencing growth in demand for its technology, and said it will seek out a new director suitable for the role of chair.

---

Petrofac 1H Order Backlog to Jump on Year

Petrofac said Tuesday that its order backlog is expected to increase significantly in the first half of 2023, while revenue in its engineering and construction unit is expected to fall, although it sees asset solutions revenue rising.

---

Physiomics Raises GBP335,000 to Fund Growth Opportunities

Physiomics said Tuesday that it has raised 335,000 pounds ($425,919) via a placing and share subscription and will use the money to fund growth opportunities.

---

Inspiration Healthcare Sees Margin Recovery Persisting in 2Q

Inspiration Healthcare Group said Tuesday that a trend of recovery in gross margins in the first quarter of fiscal 2024 has persisted into the second quarter, and that it is optimistic in a return to its usual growth patterns.

---

Aukett Swanke 1H Pretax Loss Widened on TFG Acquisition Costs; Names New COO

Aukett Swanke Group on Tuesday said its pretax loss widened for the first half of fiscal 2023 given one-off acquisition costs from its Torpedo Factory Group deal, and that TFG's finance chief Freddie Jenner will become the enlarged group's new chief operating officer.

---

Surface Transforms Sees Higher Sales in 1H Despite Production Disruptions

Surface Transforms said Tuesday that it has continued to experience small production disruptions which have slowed the rampup in output in the first half, but that it expects a rise in sales for the period.

---

Surgical Innovations Reports Strong, Persistent Demand; Says Order Book is Positive

Surgical Innovations Group said Tuesday that strong U.K. demand in 2022 has persisted into 2023, and its forward order book looks positive.

---

Arkle Resources Shares Slip on Swing to Pretax Loss in 2022

Shares in Arkle Resources dropped Tuesday after the company said it swung to a pretax loss in 2022.

---

STM Group 2022 Earnings Rose on Recurring Revenue; Cuts Dividend

STM Group on Tuesday said pretax profit rose in 2022 as recurring revenue made up 91% of reported revenue, but cut its dividend as earnings per share roughly halved due to a tax charge.

---

RBG Holdings Finance Director Suzanne Drakeford-Lewis Takes Six-Month Sabbatical

RBG Holdings said Tuesday that Finance Director Suzanne Drakeford-Lewis will leave to take a six-month sabbatical, and that Kevin McNair will take over the role on an interim basis.

---

CAB Payments Sets IPO Price at 335 Pence a Share; Conditional Trading to Start July 6

CAB Payments Holdings on Tuesday set its initial public offer price at 335 pence a share, implying a market capitalization of 851.4 million pounds ($1.08 billion) when conditional trading starts on July 6.

---

Gusbourne CEO Charlie Holland to Step Down

Gusbourne said Tuesday that Chief Executive Officer Charlie Holland will be stepping down with effect from Sept. 6 to take up a new role as winemaker at Jackson Family Wines, and that the board will now start the search for a new CEO.

---

RHI Magnesita Says Ignite Luxembourg Tender Offer Undervalues Company

RHI Magnesita said Tuesday that the tender offer by Ignite Luxembourg Holdings to buy 20% of its share capital undervalues the company but didn't make any recommendation to shareholders on whether to accept it or not.

---

SIMEC Atlantis Can't Publish 2022 Accounts by Deadline; Trading Halted From July 3

SIMEC Atlantis Energy said Tuesday that it won't be able to publish its 2022 accounts by the regulatory deadline and that its shares will therefore be suspended from trading on July 3.

---

Pennpetro Energy Shares Fall After Discounted Placing to Fund Well Acquisition

Pennpetro Energy shares fell on Tuesday after the group said it raised 300,000 pounds ($381,420) through share placement at a discount to fund the expansion of oil activities in Texas.

MARKET TALK:

Hotel Chocolat's Profit Warning Drives Material Downgrades

1115 GMT - Hotel Chocolat's profit warning last week has prompted significant downgrades, with fiscal 2024 pretax profit lowered 78% and fiscal 2025 down 58%, which is mostly due to price volatility and cost headwinds, Peel Hunt analysts write in a research note. Fiscal 2023 always looked like being a slump for the U.K. chocolate manufacturer, but the recovery is unlikely to be rapid, the analysts say. "Online remains a tricky market for Hotel Chocolat, and whilst it is still a strong brand, the hoped-for 20% margin at some stage in fiscal 2025 would be a good effort," they say. Shares should take a while to find their poise, they add. The U.K. brokerage reinstates its hold rating and a price target of 100.00 pence following a review. (christian.moess@wsj.com)

---

Alpha Financial Looks Like a Good Buying Opportunity

1035 GMT - Alpha Financial Markets Consulting's de-rating looks like a good long-term buying opportunity, RBC Capital Markets says in a note on the back of the provider of specialist consultancy services' full-year results. The company's comments on increased competition alongside the figures spooked the market on Thursday and weighed on shares, which are down 19% year to date. "Whilst the global consulting market is currently more competitive, this was already factored into forecasts and we continue to see sound market growth, given cost and regulatory pressures along with ongoing consolidation in end-markets," analyst Andrew Brooke writes. The group is well positioned to take share organically and through acquisitions as it has GBP60 million in cash, Brooke adds. (elena.vardon@wsj.com)

---

Telecom Plus' Customer Expansion, Service Provision Drive Sales, Future Growth

1010 GMT - Telecom Plus is looking forward to healthy customer and profit increases in the year to April 2024, even after a record 12 months just ended, AJ Bell analyst Russ Mould says in a note. In the wake of failing energy suppliers such as Bulb, Ampower or Igloo, the company, which operates as Utility Warehouse, is successfully cross-selling to new customers as they seek savings wherever they can get them, having added 158,000 customers and provided 530,000 more services in FY 2023, Mould says. Sales are done by partners and word of mouth, with nothing spent on advertising, so a 25% increase in partner numbers to nearly 60,000 provides a good base for future growth, he says. (anthony.orunagoriainoff@dowjones.com)

---

PZ Cussons Drops After Flagging Nigeria Currency Hit

(MORE TO FOLLOW) Dow Jones Newswires

06-27-23 0850ET