London Shares Drop as Tesco, Persimmon, M&S Fall

01/13/2022 | 04:54am
Jason Windsor

FTSE 100 Drops as Tesco, Persimmon, M&S Fall

The FTSE 100 drops 0.2%, or 17 points to 7534 as retailers and house builders fall after trading updates. Marks & Spencer Group is the top loser, down more than 5% after reiterating full-year guidance. Persimmon retreats 3% after the builder said its current forward-sales position for the year fell slightly on year. Tesco also drops 2% even as the grocer reported stronger-than-expected sales to date and said it expected full-year retail operating profit slightly above its previous top-end guidance. "Markets are setting themselves up for a down day after a lacklustre start to the European open," Interactive Investor analyst Victoria Scholar says.

 
Companies News: 

Aviva CFO Jason Windsor Resigns to Join Persimmon

Aviva PLC said Thursday that Chief Financial Officer Jason Windsor has resigned with effect from July to take up the role at Persimmon PLC.

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Persimmon PLC 2021 Revenue Rose, Forward Sales Slip Slightly

Persimmon PLC said Thursday that revenue rose 8.4% in 2021, though its current forward-sales position for the year fell slightly on-year.

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Tesco 3Q Sales Rose, Boosted by Strong Christmas Demand

Tesco PLC said Thursday that it has had stronger-than-expected sales to date following a strong third quarter of fiscal 2022 and robust during Christmas, and that it now expects to post a retail operating profit for the full fiscal year slightly above its previous top-end guidance.

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Marks & Spencer Reports Strong Performance Over Christmas; Backs FY 2022 Guidance

Marks & Spencer Group PLC said Thursday that its performance over the Christmas period was strong, and backed its guidance for the year.

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ASOS Backs FY 2022 Guidance; To Move to LSE Main Market

ASOS PLC said Thursday that its guidance for the year remains unchanged despite uncertainty related to the Omicron coronavirus variant, and that it intends to move to London Stock Exchange's main market.

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Countryside Properties 1Q Revenue, Profit Fell; CEO Steps Down

Countryside Properties PLC said Thursday that its first quarter adjusted revenue and adjusted operating profit fell, and Chief Executive Officer Iain McPherson will step down immediately.

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Hays 2Q Net Fees Rose; FY 2022 Operating Profit Seen Ahead of Market Expectations

Hays PLC said Thursday that net fees increased on a like-for-like basis in the second quarter and that it expects fiscal 2022 operating profit to be ahead of consensus market expectations.

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Johnson Service Sees 2021 Results Ahead of Market Views

Johnson Service Group PLC said Thursday that it expects 2021 results to exceed market expectations, despite challenges from the Omicron coronavirus variant in the last two weeks of December.

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Hilton Food 2021 Performance in Line With Views; Gets Regulatory Clearance for Foppen Acquisition

Hilton Food Group PLC said Thursday that performance for 2021 was in line with the board's expectations, and that its acquisition of Foppen has received regulatory clearance from the Dutch competition authority.

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Allergy Therapeutics 1H Revenue Fell, Expects Full-year Slip; Shares Drop

Allergy Therapeutics PLC shares fell Thursday after the company said that revenue fell in the first half of fiscal 2022 and it expects full-year revenue to decline.

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BMO Private Equity Trust Shareholder to Sell 3.8% Stake

BMO Private Equity Trust PLC said Thursday that one of its shareholders is planning to sell a 3.8% shareholding in the company.

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Rosslyn Data Technologies Expects Lower FY 2022 Revenue, Shares Fall

Shares in Rosslyn Data Technologies PLC fell Thursday after the company said it expects lower revenue in fiscal 2022 as the Covid-19 pandemic lengthened the lead times of larger contracts.

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Steppe Cement 2021 Revenue Rose on Higher Sales, Increased Prices

Steppe Cement Ltd. said Thursday that revenue for 2021 rose on year on the back of higher sales and prices.

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Polar Capital Holdings Nine-Month Assets Under Management Rose

Polar Capital Holdings PLC said Thursday that its assets under management at the end of 2021 rose compared with the end of March, and that net inflow momentum in the last quarter has continued into the first two weeks of January.

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Brooks Macdonald 2Q Funds Under Management Rose

Brooks Macdonald Group PLC said on Thursday that funds under management rose in the second quarter of fiscal 2022, and that it has a healthy pipeline and expected continuing positive net flows.

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Circassia 2021 Revenue Rose; Swung to Positive Adjusted Earnings

Circassia Group PLC said Thursday that its 2021 revenue rose 17%, and it swung to positive adjusted earnings before interest, taxes, depreciation, and amortization for the first time.

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Safestore Holdings FY 2021 Pretax Profit Jumped After Gain on Investment Properties

Safestore Holdings PLC said Thursday that pretax profit more than doubled for fiscal 2021 after it booked a significant gain on its investment properties and that it has raised the final dividend.

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IP Group Expects 2021 Profit More Than Doubled On Year

IP Group PLC said Thursday that it expects profit in 2021 more than doubled on year.

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Magnit's Revenue in the First 10 Days of 2022 Rose 33%

Magnit said Thursday that revenue in the first 10 days of 2022 rose 33% year-on-year on the back of an 8.4% increase in like-for-like sales.

 
Market Talk: 

Persimmon Falls as Trading Update Underwhelms Investors

0933 GMT - Shares in Persimmon drop 3.1% after the U.K. house-builder said its current forward-sales position for the year fell slightly on-year. Total forward sales value was GBP1.62 billion as of Dec. 31, compared with GBP1.69 billion a year earlier. "With approaching 300 sites in operation, Persimmon has a lot of moving parts," Hargreaves Lansdown fund manager Steve Clayton says. "Some analysts expected turnover to be a shade higher, but then again, the big jump in forward bookings, up from GBP1.32 billion to GBP1.62bn, suggests demand is fine and most likely, some completions slipped over the year-end as Omicron raced through workforces up and down the country."

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Tesco Shares Drop Despite Strong Christmas

0929 GMT - Tesco is among the biggest FTSE 100 fallers, down 1.6% even after the U.K. grocer reported stronger-than-expected sales to date and said it expected full-year retail operating profit slightly above previous top-end guidance. In a 3Q update covering the 19 weeks to Saturday, Tesco said Christmas performance had been strong. "Shareholders seem a little less impressed, with the shares falling back in early trade," CMC Markets analyst Michael Hewson says. "This response seems a little churlish, but may have more to do with the fact that the shares are close to their highest levels in 11 months. It certainly doesn't mean they can't go higher longer-term."

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ASOS Has Work to Do This Year After Slow Start to 2022, Liberum Says

0853 GMT - ASOS has maintained its guidance despite seeing its demand in the European Union and the U.S. being hit by supply-chain challenges and the effects of the Covid-19 Omicron variant, Liberum says. The online fashion retailer's slow start to the year leaves significant work for the rest of 2022, the U.K. brokerage says, noting that the company's gross margin declined to 43%, and that it has also burned significant cash to achieve technological and infrastructure progress. Liberum keeps its hold recommendation on the stock and reduces its target price to 2,300 pence a share from 3,560 pence. Shares are up 6% at 2,394.00 pence.

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Marks & Spencer Valuation Isn't in the Bargain Basement Anymore

0827 GMT - Marks & Spencer's third-quarter update is seen as another positive data point, with strong sales in the clothing and home category and full-price sales in clothing, RBC Capital Markets. Food sales were also robust over the peak period, RBC notes. But, although the U.K. retailer is making steady progress in food--helped by an improved value-for-money perception, range development and its joint venture with Ocado Retail--its more premium offer may lose some momentum in a higher-cost environment, RBC says. "We think Marks & Spencer's valuation is reasonable but not in the bargain basement anymore, as it was for much of spring and summer 2020," the bank says. (anthony.orunagoriainoff@dowjones.com)

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Tesco's 3Q, Christmas Performance Shows Strength in Meeting Targets

0825 GMT - Tesco's performance and growth in sales evidence the strength of its foundations to deliver on its targets, Citi says. The U.K.'s biggest grocer by market share set out its stall to deliver sales, EBIT and market share over the mid-term and, so far, so good, Citi says. "Evidencing the relative strength of its value-focused offer, Tesco has seen consistent switching gains from its competitor set and is growing share both in-store and online," the U.S. bank says in relation to its U.K. performance. Citi has a buy recommendation on the stock and a target price of 300 pence.

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com

(END) Dow Jones Newswires

01-13-22 0454ET

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