Vodafone's UK Merger Seen as a Hard Sale for Regulators
1207 GMT - Vodafone's U.K. merger with CK Hutchison Holdings will be a hard sale for regulators as both have been outperforming the market over the last year, PP Foresight analyst Paolo Pescatore says in a note. Both parties will need to show how the merger is genuinely in the U.K.'s interest for it to have a chance of getting over the line, Pescatore says. Although convincing the Competition and Markets Authority will be the real test, regulator Ofcom has recognized the U.K. mobile market's challenges and the need for scale as current investment levels aren't sustainable in the longer term, he says. There shouldn't be any security concerns as the JV should be majority owned by Vodafone with Hutchinson's share expected to reduce over time, he says. (anthony.orunagoriainoff@dowjones.com)
COMPANIES NEWS:
M.P. Evans Launches GBP 12Mln Share Buyback Program
M.P. Evans Group said Wednesday that it will launch a share buyback program of 12 million pounds ($15.1 million) starting immediately to invest across its estates, in strategic acquisitions and for payment of dividends.
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Shell to Lift Dividend by 15%, Launch $5 Billion Buyback
Shell said Wednesday that it will increase shareholder distributions, while outlining plans for $5 billion in buybacks and a reduction in capital spending.
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Prosus Sees Lower Earnings Per Share in FY 2023
Prosus NV said Wednesday that it expects earnings per share to fall in fiscal 2023 due to reduced contributions from associates, and Chinese tech giant Tencent in particular.
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Safestore 1H Pretax Profit Fell Despite Revenue Rise
Safestore Holdings said Wednesday that pretax profit declined 64% in the first half of fiscal 2023 due to lower gain on properties, but that revenue rose on higher average store rates.
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Shaftesbury Capital Five-Month Rents Are 6% Ahead of December's Estimated Rental Value
Shaftesbury Capital said Wednesday that in the first five months of the year rents on average are 6% ahead of December's estimated rental value, or ERV, and that demand for space in its West End locations, in London, continued to be strong.
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Games Workshop Sees Higher FY 2023 Pretax Profit, Core Sales
Games Workshop said Wednesday that the group's estimated pretax profit for fiscal 2023 rose on higher core revenue.
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GCM Resources Shares Fall on Discounted Placing, Need for Further Fund Raise Before Year's End
Shares in GCM Resources fell on Wednesday after the company said it intended to raise around 500,000 pounds ($630,700) via a discounted placing, and that it will need to conduct another fundraise before the end of the year to fund its working capital into 2024.
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TomCo Raises GBP500,000 in Discount Placing, Subscription
TomCo Energy said Wednesday that it has raised 500,000 pounds ($630,700) through a discount share placing and subscription in order to replace a credit line and help cover anticipated expenditure.
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San Leon Energy Shares Fall on Trading Suspension Warning Due to Accounts Publishing Delays
San Leon Energy shares fell Wednesday after it said it expects its shares will be suspended from trading effective July 3 as it will delay publishing its accounts for 2022 beyond June 30, and that it hasn't been able to access funding from an alternative loan facility yet.
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Victrex Shares Fall on FY 2023 Adjusted Profit Warning
Shares in Victrex fell Wednesday after the company lowered its fiscal 2023 adjusted pretax profit outlook, blaming lower revenue expectations due to weaker demand.
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M&C Saatchi Sees Lower Revenue for 2023 Amid Downbeat Environment; Shares Fall
M&C Saatchi shares fell Wednesday after the company said a challenging business environment has persisted into the second quarter of 2023, and that it now sees a small net revenue decline on-year.
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Dalata Sees Higher 1H Adjusted Ebitda on Strong Demand
Dalata Hotel Group said Wednesday that adjusted Ebitda for the first half of 2023 will be ahead of the year-prior period amid strong demand across all markets, and that revenue per available room will be 29% ahead of prepandemic levels.
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James Cropper CFO Steps Down; New Incoming CFOO Named
James Cropper said Wednesday that Chief Financial Officer Isabelle Maddock has resigned from the board and her role with immediate effect, and named Andrew Goody as incoming chief financial and operations officer.
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Robert Walters Shares Drop After Profit Warning
Shares in Robert Walters fell Wednesday after the company said its 2023 profit is likely to be significantly lower than market consensus, and that it will cut costs following a drop in income in the second quarter.
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Frontier Developments Sees Revenue Decline in FY23
Frontier Developments said Wednesday that it expects revenue to fall in fiscal 2023, although in line with guidance, and that it will cease acquiring third-party titles following review of its Foundry games label.
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Eckoh FY 2023 Pretax Profit Rose on Higher Revenue
Eckoh said Wednesday that pretax profit rose for fiscal 2023 on higher revenue that was driven by organic growth and the full-year effect from the Syntec acquisition.
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Severfield Shares Rise With Higher Profit, Positive Outlook
Shares in Severfield rose Wednesday after it reported a higher pretax profit for fiscal 2023, said many of its markets have a positive outlook, and raised its final dividend.
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AssetCo 1H Pretax Loss Widened on Higher Costs
AssetCo said Wednesday that pretax loss for the first half of fiscal 2023 has widened on the back of increased costs and operational losses after the introduction of its newly acquired businesses in the report.
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James Fisher & Sons Performance to May 31 Ahead of Views; 2023 Within Views
James Fisher & Sons said Wednesday that its performance in the five-month period to May 31 was slightly ahead of the board's expectations, and that despite uncertainty in the macroeconomic environment its markets remained resilient and the board's outlook for the year remains unchanged.
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Restore CFO Neil Ritchie Plans to Step Down by Mid-December
Restore said Wednesday that Chief Financial Officer Neil Ritchie intends to step down from the role by mid-December, in order to pursue other business interests.
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Corcel Chair James Parsons Becomes CEO
Corcel said Wednesday that Chairman James Parsons will assume the role of chief executive officer and executive director with immediate effect.
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Trending: Shell Bumps Shareholder Returns, Commits to Oil Production
0955 GMT - Shell is among the most mentioned companies across news items over the past 12 hours, according to Factiva data, after the energy major said it will increase shareholder distribution while deepening its commitment to the oil-and-gas business. In an update ahead of its Capital Markets Day, the company said it will increase shareholder distribution to 30%-40% of cash flow from operations through the cycle, from 20%-30% previously, with a 15% increase in dividend a share effective from the second quarter. RBC Capital Markets had expected a 20% bump, however the Canadian bank noted the move might be a re-basement with potentially further increases to come. "With buybacks year to date and the guidance for second half of 2023 [of "at least $5 billion"], Shell should repurchase around 6%-7% of its shares this year, providing room to increase the dividend further," RBC said. Shell also said it will cut spending, keep its oil production steady and scale back on less-profitable businesses. "We will invest in the models that work-those with the highest returns that play to our strengths," Chief Executive Wael Sawan said. Dow Jones & Co. owns Factiva. (christian.moess@wsj.com)
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Vodafone and Three Agree to Merge UK Businesses
Vodafone Group said Wednesday that it has entered into binding agreements with Hong-Kong listed CK Hutchison Group Telecom Holdings, in relation to a combination of Vodafone UK and Three UK, their telecommunications businesses in the U.K.
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Seed Capital Solutions Appoints New Chief Financial Officer
Seed Capital Solutions said Wednesday that it has appointed Segar Karupiah as chief financial officer with immediate effect.
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Manchester Airports Group Appoints Ken O'Toole as CEO
Manchester Airports Group said Wednesday that it has appointed Ken O'Toole as chief executive officer with effect from Oct. 1.
MARKET TALK:
Shell's Focus on Shareholder Returns Makes Pivot From Oil and Gas Challenging
1227 GMT - Shell's long-term focus on pay-outs to shareholder will restrict capital available for investing in new technologies, which could make the pivot away from oil and gas more challenging, Hargreaves Lansdown Head of Equity Research Derren Nathan says in a research note. "[Shell] has made some meaningful nearer-term pledges including the elimination of gas flaring at its wells by 2025, but there will be some disappointment that oil production is set to remain at current levels out to at least 2030," Nathan says. The energy major increased its shareholder returns to be 30%-40% of cash flow from operations, up from 20%-30% previously, which will be underpinned by a move to keep oil production at current levels, instead of a previously set-out reduction of 1%-2%. (christian.moess@wsj.com)
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Aston Martin's Geely Deal Shifts It Into M&A Gear
(MORE TO FOLLOW) Dow Jones Newswires
06-14-23 0903ET
