FTSE 100 Closed Down 0.2% on Geopolitical Events, Higher-Than-Forecast U.K. Inflation

The FTSE 100 closed down 0.2% as the geopolitical uncertainty stemming from the reported landing of Russian-made missiles in Poland lingered. A higher-than-expected U.K. inflation number was also a reminder "that continued sticky inflation was likely to be a significant drag on future earnings potential, not only in the U.K., but also in Europe where it is just as high, and in a lot of cases much higher," CMC Markets analyst Michael Hewson says in a note. Ocado was the session's biggest faller, down 5.7%, followed by Rightmove and Rolls-Royce, down 4.5% and 4.3% respectively. Sage Group was the biggest riser, up, 7.3%, followed by BAE Systems, up 4.2%, and Haleon, up 3.2%.

 
Companies News: 

Experian 1H Pretax Profit Fell Amid Higher Costs; Backs FY 2023 Views

Experian PLC on Wednesday reported a fall in pretax profit for the first half of fiscal 2022 and reiterated its full-year guidance despite expecting the economic backdrop to be tougher over the year.

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Deliveroo to End Operations in Australia

Deliveroo PLC said Wednesday that it has decided to stop operations in Australia as it doesn't hold a broad base of strong local positions, but said this won't change full-year guidance.

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British Land Swung to 1H Pretax Loss on Interest Rate Hikes; Raises Dividend

British Land Co. said Wednesday that it swung to a pretax loss in the first half of fiscal 2023 as portfolio valuations fell on rising interest rates, though revenue rose and it increased its dividend.

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Sage Group FY 2022 Profit Fell as Costs Rose

Sage Group PLC said Wednesday that fiscal 2022 pretax profit fell as costs increased due to a change in recurring and nonrecurring items, including higher net gains in the prior year from disposals.

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SSE Swung to 1H Pretax Loss After Booking Higher Costs; Backs Guidance

SSE PLC said Wednesday that it swung to a pretax loss for the first half of fiscal 2023 after booking higher costs, and backed its guidance for the year.

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CMC Markets 1H Pretax Profit Rose on Higher Market Activity

CMC Markets PLC said Wednesday that pretax profit for the first half of fiscal 2023 rose slightly as market activity accelerated, and that the group's expansion plans remain on track.

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McBride Performing in Line Year to Date Despite Challenging Market

McBride PLC said Wednesday that it has performed in line with expectations in the year to date, despite uncertainty in the political and macroeconomic environment.

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Mediclinic International 1H Boosted by More Inpatients, Day Cases

Mediclinic International PLC on Wednesday reported a 4.4% rise in pretax profit for the first half of fiscal 2023 on revenue that was boosted by more inpatient and day case admissions, but offset by lower average revenue per case compared with the pandemic-affected comparable period.

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Premier Foods 1H Pretax Profit, Revenue Rose on Brand Strength

Premier Foods PLC said Wednesday that pretax profit and revenue rose in the first half of fiscal 2023, with consistently strong growth recorded across its brand portfolio.

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Tullow Oil 10-Month Production Meet Views; Narrows 2022 Guidance Range

Tullow Oil PLC said Wednesday that production for 2022 is in line with expectations, and narrowed the range of its full-year guidance.

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Hill & Smith PLC Upgrades 2022 Operating Profit Views on Robust Performance

Hill & Smith PLC said Wednesday that it expects full-year operating profit to be ahead of market expectations as revenue continued to be robust.

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Senior 10-Month Performance in Line With Views; Maintains Full-Year Outlook

Senior PLC said Wednesday that it performed in line with management's expectations in the 10-month period ended October, and maintained its full-year guidance.

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CLS Holdings Expects 2022 EPS to Rise, Says It Is Well-Positioned for Future

CLS Holdings PLC said Wednesday that it is on track to meet market views for 2022 earnings per share, and that it is well-positioned to weather challenging economic conditions.

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IDOX FY 2022 Revenue, Adjusted Ebitda Rose in Line With Views

IDOX PLC said Wednesday that it expects to report an increase in revenue and adjusted earnings before interest, taxes, depreciation and amortization for fiscal 2022, in line with the board's expectations.

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Bridgepoint Backs 2022 Views Amid Resilient Performance

Bridgepoint Group PLC said Wednesday that it remains on track to achieve its full-year guidance despite the challenging macroeconomic backdrop.

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Beazley Raises Around GBP350 Mln via Discounted Placing

Beazley PLC said Wednesday that it has conditionally raised around 350 million pounds ($415.3 million) via a discounted placing, a subscription and a retail offer, missing a previously announced bookbuild target.

 
Market Talk: 

UK Inflation Data Makes 75Bps BOE Interest-Rate Rise Likely in December

0926 GMT - U.K. inflation data for October leaves no good choices for the Bank of England, making another 75 basis-point interest-rate rise in December likely, Tim Graf, head of EMEA macro strategy at State Street, says in a note. Energy prices remain a large contributor to headline inflation, and it should be borne in mind that the effects of the government's energy price cap should soon become more visible, he says. Without energy, headline inflation likely would have fallen, he notes. "However, the rise in core inflation is more troubling, with an implied rate of approximately 0.7% [month on month] one of the strongest monthly prints of this whole cycle," Graf says. ([e-mail])

British Land's 1H Beat Expectations but Risk Remains High

0858 GMT - British Land's first-half performance across various cost lines were better than RBC Capital Markets expected, outperforming underlying earnings per share forecasts by 17%, but exposure to uncertainty remains high. The property developer and investor's letting performance into the third quarter appears to give management confidence that positive operational trends can be sustained, RBC analysts say in a note. "The sensitivity of its revenues to the strength of the U.K. consumer remains significant. At the same time, the risk of committing to London office developments currently appears high given uncertainty over construction costs, funding costs and tenant demand," the Canadian bank says. RBC retains its underperform rating and 330 pence price target on British Land's stock. Shares are down 2.1% at 387.9 pence. ([e-mail])

British Land's 1H Was Strong But Results Already out of Date

0856 GMT - British Land's first-half operational performance was impressive, but the U.K. market has moved on considerably since the valuations were compiled, with capital values down significantly in October alone, Goodbody says. The real-estate company's occupier demand would appear to remain firm--reserved space figures shows this continuing--and this is supporting rental levels, which can offset some of the yield-driven valuation decline, Goodbody analyst Colm Lauder says in a market note. "However, capital values are moving fast in the U.K., and the 695 pence first half net tangible asset print is already well dated," the Irish brokerage says. Goodbody retains its hold rating on British Land's stock. Shares are down 1.3% at 391.1 pence. ([e-mail])

Sage Group Can Unlock Further Growth

0845 GMT - Sage Group can unlock further upside through accelerating organic revenue growth and improving operating margins as it continues its cloud transition, Shore Capital's Martin O'Sullivan says in a research note. The FTSE 100 software group's fiscal 2022 results showed encouraging signs, similar to previous updates, and more than before it seems committed to building platforms and systems that empower customers to run smarter, more digital organizations, which could in turn drive powerful network effects, they say. Shore Capital reiterates its buy rating on the stock. Shares trade up 5.3% at 795.60 pence.([e-mail])

British Land's Headwinds Look More Macroeconomic Than Personal

0845 GMT - British Land's exposure to the office and retail sectors leaves it under pressure, but it has some strong factors in its favor and the building blocks in place to turn that exposure to its advantage, Interactive Investor says. Concerns which are more broadly based on economic prospects remain the major headwind for the property developer, and investors are split on whether any recovery is too early to call, Interactive Investor's head of markets Richard Hunter says in a note. "On balance, the current market consensus of the shares remains unconvincing and comes in at a hold, albeit a strong one," Hunter says. Shares are down 1.6% at 389.6 pence. ([e-mail])

SSE Investors to Focus on UK Budget Despite Weak 1H Result in Renewables Sector

0838 GMT - Although energy company SSE's 1H numbers are in line with expectations, there was a weaker-than-anticipated result in the renewables segment although it was offset by a strong performance in thermal generation and gas storage, RBC Capital Markets analyst John Musk says in a note. "The weakness in renewables may prove a slight disappointment although we note full-year guidance has been fully reiterated and the near-term focus for investors will very much be on the U.K. budget to be announced tomorrow and details on the planned windfall tax for electricity generation," Musk says. RBC has a 1,825-pence target price on the stock. Shares are down 1.3% at 1,623 pence.([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

11-16-22 1250ET