UKX FTSE 100 Index

The FTSE 100 closed Wednesday down 0.2% to 7744 points amid a weaker trading in global markets while travel and leisure stocks continued their positive streak. Insurer Aviva lead a short list of risers, up 3.3%, after reporting a positive update to its general-insurance businesses. British Airways owner IAG rose 2% on the back of easyJet forecasting a return to annual profit supported by strong demand for travel despite the cost-of-living crisis, CMC chief market analyst Michael Hewson says in a note. Amid the top fallers, Ocado closed down 4.9%, while credit-reporting agency Experian was down 3.7% and Scottish Mortgage Investment Trust fell 2.9% after posting a negative return for the year ended March 31.

Companies News: 

Fresnillo 2022 Gold Production Fell, Sees 2023 Production Potentially Rising

Fresnillo PLC on Wednesday said its 2022 gold production fell in line with expectations though silver production rose, and it forecast a range including potentially higher gold production in 2023.

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Quilter 4Q Assets Under Management Down On Year

Quilter PLC on Wednesday said its fourth-quarter assets under management and administration came in below those of a year earlier due to slower activity in equity markets and slightly lower bond yields in the three-month period.

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Aviva Estimates GBP50 Mln Cost Due to UK December Weather

Aviva PLC said Wednesday that it expects the cold weather in the U.K. during December to cost around 50 million pounds ($61.6 million) and that its overall weather experience for the quarter year is marginally above the long-term averages, although in line for the year as a whole.

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J.D. Wetherspoon 1H Sales Rose On Year But Remain Short of Prepandemic Levels

J.D. Wetherspoon PLC said Wednesday that sales for the first half of fiscal 2023 rose on year though remained below prepandemic levels, and said it was cautiously optimistic for the full-year.

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easyJet Expects to Beat FY 2023 Pretax Profit Market Consensus After 1Q Revenue Rose

easyJet PLC said Wednesday that it expects to beat fiscal 2023 market consensus for pretax profit after first-quarter revenue rose, and that booking strength continues across the second quarter and into the summer season.

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CMC Markets Sees FY 2023 Net Operating Income in Line With Views

CMC Markets PLC said Wednesday that net operating income for fiscal 2023 is on track to meet market expectations, but didn't provide any figures

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Tullow Oil to Report Higher Revenue, Free Cash Flow Ahead of Guidance for 2022

Tullow Oil PLC said Wednesday that it expects to report a rise in revenue for 2022, and that free cash flow for the year will be around $267 million and ahead of guidance.

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Polymetal Meets 2022 Production Expectations; Sees 2023 Costs Rising Slightly

Polymetal International PLC said Wednesday that it met production guidance in 2022, and guided for roughly flat production and slightly higher costs in fiscal 2023.

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Next Fifteen Sees FY 2023 Revenue Grow 55% On Year

Next Fifteen Communications Group PLC on Wednesday said it expects fiscal 2023 results to be in line with management expectations after a strong second half.

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Pendragon to Beat 2022 Underlying Pretax Profit Forecasts After Strong 4Q

Pendragon PLC said Wednesday that it expects to beat 2022 underlying pretax profit market expectations after a strong fourth-quarter performance.

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OnTheMarket Expects Higher Adjusted Operating Profit for FY 2023

OnTheMarket PLC said Wednesday that its adjusted operating profit for fiscal 2023 is expected to rise in line with management expectations.

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hVIVO Shares Rise on Expected Higher 2022 Revenue; To Make Shareholder Distribution

Shares in hVIVO PLC rose Wednesday after the company said it expects to report a year-on-year rise in revenue for 2022 and that it intends to make a shareholder distribution in respect of 2022's financial performance.

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Home REIT Confirms Tenant Hasn't Paid Rent; Working to Fix Issues

Home REIT PLC confirmed Wednesday that tenant Lotus Sanctuary CIC hasn't paid rent for the quarter to Nov. 30, and it was working constructively with Lotus to fix the tenant's operational issues.

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Keywords Studios Expects 2022 Revenue, Adjusted Pretax Profit to Exceed Recent Guidance

Keywords Studios PLC said Wednesday that it expects to beat previously forecast revenue and adjusted pretax profit expectations for 2022 as it benefited from high demand for its services, particularly the create and globalize service lines.

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Watkin Jones FY 2022 Pretax Profit Fell on Exceptional Charge

Watkin Jones PLC on Wednesday said its pretax profit for fiscal 2022 was 64% lower as it booked an exceptional charge and said it sees margin pressures continuing into fiscal 2023.

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Inland Homes Shares Fall on Downgraded Guidance for FY 2022 Pretax Loss

Inland Homes PLC shares fell Wednesday after it said that it expects a wider pretax loss for fiscal 2022 than previously guided, and said it has sold its greenfield strategic land portfolio given strengthening government restrictions.

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XP Factory Sees 2022 Revenue, Adjusted Ebitda Significantly Rising

XP Factory PLC said Wednesday that it expects to report significantly increased revenue and adjusted earnings for 2022, reflecting underlying growth and the first year of revenue from its Boom Battle Bar brand acquisition.

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Rurelec Shares Fall on Liquidity Warning

Shares in Rurelec PLC fell Wednesday after the company said its liquidity position will become acute in the second quarter of 2023.

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Van Elle Shares Fall After CEO Warns of Challenges

Shares in Van Elle Holdings PLC fell Wednesday as Chief Executive Mark Cutler warned of more challenging market conditions in the short term, though the company's board is confident in achieving market expectations for the full year.

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Gresham House Sees 2022 Adjusted Operating Profit at Top End of Market Views

Gresham House PLC said Wednesday that it expects adjusted operating profit for 2022 to be at the top end of market forecasts, and that assets under management at year-end are expected to be up 20%.

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Ascential Shares Soar After 2022 Results to Beat Views, Proposed Reorganization

Shares in Ascential PLC rose 24% on Wednesday after the company said its revenue and core profit for 2022 are expected to beat market expectations an that it intends to spin off one of its businesses and sell another as part of a reorganization of its portfolio.

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Epwin Group Sees 2022 Adjusted Pretax Profit in Line With Views

Epwin Group PLC said Wednesday that it expects to report adjusted pretax profit for last year in line with market expectations, as pricing increases helped it deliver higher sales.

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Beowulf Mining Shares Fall on $11.2 Mln Discount Fundraise Plans

Beowulf Mining PLC shares fell Wednesday after it said it will raise up to 9.1 million pounds ($11.2 million) in a discount fundraising to maintain the pace of development at the Kallak iron-ore project.

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Lords Group Shares Rise on Expectations of 2022 Beating Market Forecasts

Shares of Lords Group Trading PLC rose 11% on Wednesday after the company said that it expects to report a record performance for last year and to beat market forecasts, boosted by its merchanting unit.

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Fonix Mobile to Pay Higher 1H Dividend on Gross Profit, Adjusted Ebitda Rise

Fonix Mobile PLC said Wednesday that gross profit and adjusted Ebitda both rose 12% over the first half of fiscal 2023 and that it expects to declare an increased interim dividend in March, in line with its policy.

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Scancell Swung to 1H Pretax Loss, Net Assets Fell

Scancell Holdings PLC said Wednesday that it swung to a pretax loss for the first half of fiscal 2023, and that net assets fell.

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eEnergy Is Cautiously Optimistic for FY 2023 After 1H Revenue Rose

eEnergy Group PLC said Wednesday that its revenue significantly rose in the first half of fiscal 2023 and it was cautiously optimistic for the full year.

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Ergomed Sees 2022 Adjusted Earnings Meeting Market Views; Names New CFO

Ergomed PLC said Wednesday that it expects to report an adjusted Ebitda for 2022 in line with market expectations while revenue rose, and appointed Jonathan Curtain as incoming chief financial officer.

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Hargreaves Services Raises Interim Dividend After 1H Pretax Profit Rose on Robust Performance

Hargreaves Services PLC said Wednesday that pretax profit for the first half of fiscal 2023 increased on the back of a robust performance, and raised its interim dividend.

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Hill & Smith Sees 2022 Operating Profit at Top End of Market Forecasts

Hill & Smith PLC said Wednesday that operating profit for 2022 is expected to be at the top end of market expectations after a strong finish to the year and an outperformance in its U.S. business.

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Oakley Capital's 2022 Net Asset Value Rose On Year

Oakley Capital Investments Ltd. on Wednesday said its net asset value at the end of 2022 was 21% higher than a year prior and that it sees resilient business in 2023.

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Tintra Appoints Paul James as COO

Tintra PLC said Wednesday that Paul James has been appointed as chief operating officer, and that although this isn't a board position he will be responsible for the operational rollout of its strategy.

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Biome Technologies Expects 2022 Revenue, Adjusted Ebitda Loss to Meet Market Views

Biome Technologies PLC said Wednesday that it expects to report higher revenue and adjusted loss before interest, taxes, depreciation and amortization for 2022 to meet market expectations.

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Celsius Resources Expects GBP14.8 Mln Market Cap at Start of London Trading in Late January

Celsius Resources Ltd. expects a market capitalization of 14.8 million pounds ($18.2 million) when its shares start trading on London's junior AIM later this month, it said Wednesday.

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Forterra Expects 2022 Earnings to Beat Management Views After Price Increases

Forterra PLC said Wednesday that it expects its 2022 earnings to be slightly ahead of management views as it increased prices to offset inflation costs, but that it saw a softening in demand toward the end of the year.

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Broadcom's $61 Bln Acquisition of VMware Faces UK Regulator Probe

The U.K. Competition and Markets Authority said Wednesday that it has begun a review into chip maker Broadcom Inc.'s planned $61 billion acquisition of VMware Inc. and has set a deadline of March 22 for its initial decision.

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Ex-Janus Henderson analyst accused of insider dealing, money laundering -- Financial News

Redinel Korfuzi is accused of using confidential inside information to help him and four other individuals net profits of GBP1.5m

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Diageo's 1H Sales Poised To Grow, 2H Prompts Caution -- Earnings Preview

Diageo PLC is scheduled to report results for the first half of fiscal 2023 on Thursday. Here's what you need to know:

 
Market Talk: 

J.D. Wetherspoon Sales Close to Prepandemic Levels

1146 GMT - J.D. Wetherspoon's holiday performance update was in line with commentary from its peers with strong business throughout the festive period and like-for-like sales almost meeting prepandemic levels, Jefferies says. The pub operator said it remains "cautiously optimistic" for 2023 and hasn't flagged any incremental cost pressures nor any hit from strikes or snow, Jefferies analysts say in a research note. The company has financial and product characteristics that should mitigate pressures, including a mostly freehold estate, high leverage with interest-rate swaps now terminated, strong offer pricing compared with peers, fixed utility costs and long-term food-and-drink contracts, the U.S. bank says. Jefferies retains its buy rating and 479.0 pence price target on J.D. Wetherspoon's stock. (joseph.hoppe@wsj.com)

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J.D. Wetherspoon's Performance Missing Prepandemic Levels Is 'Damaging'

1149 GMT - J.D. Wetherspoon's Christmas business was better on-year, but that is unsurprising--what is damaging is it is still below prepandemic levels, AJ Bell says. The pub operator always prized volume over margins, so given how fast costs are rising it is unsurprising that profitability is pressured, AJ Bell investment director Russ Mould says in a market comment. Chair Tim Martin labels supermarkets as the culprit, as people buy booze in shops and drink at home--a situation he notes is exacerbated by differences in tax treatment, the brokerage says. "Barring some kind of concession by the government, all Wetherspoons can do is redouble its efforts to make its venues appealing places for people to visit, rather than just somewhere to buy relatively inexpensive drinks," Mould says. Shares are down 2.9% at 465.0 pence. (joseph.hoppe@wsj.com)

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Diageo 1H Likely to Show Little Signs of Change in Consumer Behavior

1157 GMT - Diageo's 1H performance is expected show early signs of slowing premiumisation trends--the action of making a brand more appealing by emphasizing its superior quality or exclusivity--in North America, Citi analysts say in a note. "(In North America) we expect overall trading to have held up well, but for management to highlight early signs of changing consumer behavior with value and standard brands declining less and the rate of premiumisation to higher-end products easing," they say. As for emerging markets, they are likely to be resilient led by India and Latin America, Citi says. Overall, trading is expected to have limited signs of significant changes in consumer behavior or downtrading to date, the U.S. bank says. (michael.susin@wsj.com)

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DiscoverIE Better Than Peers at Passing on Costs, Says Shore Capital

1158 GMT - DiscoverIE has been more successful than peers in passing on costs due to its customized solutions and its products representing a relatively small proportion of clients' budgets, says Shore Capital. Analysts Tom Fraine and Akhil Patel say the electronic components maker's gross margin has remained robust despite copper and aluminum prices decreasing, signaling price increases may have moderated in the third quarter. They add that operational leverage and M&A could drive further margin expansion. Shore rates the stock hold, noting the group looks well placed to benefit from long-term trends. Shares are up 4.6% at 828.0 pence. (elena.vardon@wsj.com)

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J.D. Wetherspoon Sales Growth Reverses, Guidance Seen as Tenuous

1203 GMT - J.D. Wetherspoon's like-for-like sales slowed to 2% below prepandemic levels over the last 12 weeks, having been 0.4% above in the first 14 weeks to early November, Peel Hunt says. The pub operator's high operational gearing in its low pricing/low margin model leaves forecasts hugely sensitive to small changes in sales and Peel Hunt will consider cutting forecasts after an analyst meeting, Douglas Jack and Ivor Jones say in a research note. "We believe the combination of a tough trading environment and current fixed energy contracts maturing in July leave forecast risk weighted to the downside," the analysts say. Peel Hunt retains its hold rating and 550 pence price target on the stock. Shares are down 2.7% at 466.2 pence. (joseph.hoppe@wsj.com)

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Upcoming Central Bank Meetings Likely to Drive Up Bond Yields

1220 GMT - Upcoming meetings by the U.S. Federal Reserve Bank, the European Central Bank and the Bank of England are expected to deliver interest-rate increases which "could be a tough environment for all asset classes," RBC Capital Markets analysts say in a note. Interest-rate hikes are expected to drive up government bond yields and put downward pressure on equity markets, the analysts say. The anticipated economic downturn is also likely to negatively affect equities, according to the Canadian bank. (miriam.mukuru@wsj.com)

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EasyJet's Numbers Need to Come Up as Previous Guidance Looks Overly Cautious

1221 GMT - Considering easyJet's 1Q guidance came at the end of November and looked pessimistic versus commentary from peers, the scale of the 1Q beat is significant and reflects either a strong upturn in December or an overly cautious view at the end of November, Bernstein analyst Alex Irving says in a note. The budget airline guided for an increase of around 20% in revenue per seat which ended up at over 36% as both fares and ancillaries rose around 20%, and it expects these strong trends to continue into 2Q, Irving says. "Airline reporting season starts optimistically, and we expect easyJet to be the first of several strong prints. Earlier guidance looks overly cautious and numbers will need to come up," he says. (anthony.orunagoriainoff@dowjones.com)

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Direct Line Value Could Be Preserved by Ditching 2023 Dividend, Says Berenberg

1226 GMT - Direct Line not paying a dividend in 2023 could be the right option, Berenberg says in a note. The brokerage sees this as the most effective and cost-efficient option for the insurer as it tries to recapitalize itself. "While we believe that Direct Line has the ability to generate good returns in the long term, if the cancelling of the dividend is announced, we believe that this would lead to further underperformance," says analyst Thomas Bateman, cutting Berenberg's rating of the stock to hold from buy. He adds that this option would help preserve the value of shares over the long term instead of permanently devaluing them if other options are utilized. The target price is cut to 160 pence from 272 pence to reflect a higher cost of equity associated with the shares, he adds. Shares fall 2.2% at 172.20 pence. (elena.vardon@wsj.com)

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J.D. Wetherspoon's High-Volume, Low-Margin Structure Looks Risky

1249 GMT - J.D. Wetherspoon's like-for-like sales remain stubbornly below prepandemic levels and while the pub operator is improving, it is still lagging behind the sector's recovery, Liberum says. This is likely structural with a change in demographics and behavior creating challenges for its large-site, high-volume, low-margin model, Liberum analysts say in a research note. Furthermore, the shift in sales mix toward food sales is likely to weigh on margins, compounding the effect of inflationary headwinds, they say. "There is nothing in this update to allay our concerns that J.D. Wetherspoon's reliance on large, high-volume sites remain structurally challenged from both a volume recovery and margin perspective," the brokerage says. Liberum retains its hold rating and 450 pence price target on J.D. Wetherspoon's stock. Shares are down 2.6% at 466.4 pence. (joseph.hoppe@wsj.com)

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Wetherspoon Faces Cost Pressures, Debt Concerns

1255 GMT - J.D. Wetherspoon is facing pressures despite upbeat longer-term prospects, Panmure Gordon says, downgrading the U.K. pub group to hold from buy. The company's unique low pricing and high-volume business model is fundamentally attractive and management acts in the long-term interest of the business, Panmure says. Wetherspoon also has plenty of long-term opportunities including the chance to gain market share from smaller operators likely to be struggling, the U.K. brokerage says. "However, given the current cost pressures facing the company, concerns about net debt and current valuation, we cut to a hold recommendation," analyst Alex Chatterton writes, cutting Panmure's target price on the stock to 460 pence from 640p. Shares fall 3% to 466 pence. (philip.waller@wsj.com)

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

January 25, 2023 11:59 ET (16:59 GMT)

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