Gilt Yields Rise After Weak Demand at BOE's Gilt Sale

1053 GMT - The Bank of England's medium-term gilt auction on Monday received weak demand and has resulted in a selloff in gilts, pushing yields higher, say ING analysts in a note. "Our debt strategy has been pointing out that investor demand is for shorter-dated gilts and that GBP6.25bn worth of gilt auctions later this week will not have helped the BOE's gilt auction," say the analysts. Yields on 10-year gilts trade at 3.618%, versus around 3.557% before the results of the BOE's auction were announced, according to Tradeweb. (miriam.mukuru@wsj.com)


 
Companies News: 

Persimmon Sales Fell; Backs 2022 View But Sees 2023 Sales Slipping

Persimmon PLC said Tuesday that sales over the first four months of the second half of the year fell against a strong comparative and macroeconomic headwinds, and while it sees 2022 meeting views, it expects 2023 sales to fall.

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ALD Acquisition of LeasePlan Gets UK Competition Regulator Clearance

The U.K. competition regulator said Tuesday that it has cleared the acquisition of LeasePlan Corp. by Societe Generale SA's vehicle-leasing business ALD SA.

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Aveva 1H Pretax Loss Widened on Amortization Relating to Schneider Deal

Aveva Group PLC said Tuesday that its pretax loss for the first half widened due to amortization of intangible assets relating to the combinations with the Schneider Electric industrial software business and OSIsoft.

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WPP CFO John Rogers to Step Down; Britvic's Joanne Wilson Named Successor

WPP PLC said Tuesday that Chief Financial Officer John Rogers has decided to step down from the company, and named soft-drink company Britvic PLC's CFO Joanne Wilson as successor.

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AB Foods FY 2022 Pretax Profit Rose on Robust Pricing; Launches GBP500 Mln Share Buyback

Associated British Foods PLC said Tuesday that pretax profit for fiscal 2022 rose on robust pricing amid a normalization of customer behavior, and raised its dividend payout and launched a buyback program.

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IMI 3Q Organic Revenue Rose; Upgrades 2022 EPS Guidance

IMI PLC said Tuesday that third-quarter organic revenue growth was 4% and that it is upgrading its full-year earnings per share guidance.

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Irish Government Sells 134 Mln AIB Group Shares at EUR2.96

J.P. Morgan Securities PLC said Tuesday that it has now sold 134 million ordinary shares in AIB Group PLC on behalf of the Irish Government at 2.96 Euros a share ($2.97), as first announced late Monday.

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Hilton Food's 2022 SeaFood Business Profit to Miss Expectations

Hilton Food Group PLC said that volume and revenue performance have been in line with the board's expectations, although it expects a drop in its U.K. seafood business operating profit for the full year amid macroeconomic pressures.

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Hammerson 3Q Rental Income, Sales Rose; Sees 2022 Adjusted Earnings Rising

Hammerson PLC said Tuesday that its third-quarter rental income and sale increased on further postpandemic recovery, and it expects full-year adjusted earnings to rise.

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Seraphine Sees 1H Loss Amid Tough UK Conditions

Seraphine Group PLC said Tuesday that it expects to post a loss for the first half after experiencing a challenging retail environment and softer trading during the summer months.

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IMI PLC to Buy U.K. Smart Thermostatic Control Manufacturer for Up to GBP118 Mln

IMI PLC said Tuesday that it is buying U.K. smart thermostatic control manufacturer Heatmiser UK Ltd. for up to 118 million pounds ($135.9 million), as part of its plan to accelerate growth in smart buildings.

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Marks Electrical 1H Pretax Profit Flat; Backs FY Guidance

Marks Electrical Group PLC said Tuesday that pretax profit for its fiscal first half was flat on year in a tough trading environment and that it was well positioned to achieve full-year targets.

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Direct Line Insurance 3Q New Business Sales Fell

Direct Line Insurance Group PLC said Tuesday that new business sales in the third quarter fell as it raised prices in order to restore margins in the motor division.

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CVS Group Plans to Double Ebitda, Boost Revenue Over Five Years

CVS Group PLC said Tuesday that it plans to double its Ebitda over the next five years and significantly increase revenue growth.

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ZOO Digital Posts Maiden 1H Pretax Profit on Localization Growth, Media-Services Expansion

ZOO Digital Group PLC said Tuesday that it booked its first-ever pretax profit for the first half of fiscal 2023, and that it is backing its full-year guidance.

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Chesterfield Resources to Drop Some Cyprus Licenses to Focus on Most Prospective Ones

Chesterfield Resources PLC said Tuesday that it will drop a number of licenses in Cyprus as they expire over the next six months, and that this will allow it to focus on the most prospective licenses.


 
Market Talk: 

Persimmon Should Expect More Sector Weakness Ahead

1053 GMT - Persimmon has suffered from the weakness felt across the house building sector, manifesting in significantly lower sales rates and selling prices, Davy Research says. The house builder's outlook is understandably non-committal when considering the backdrop, as it said it is well placed to deliver its target for the year, but flagging uncertainty given the higher cancellation rates--and now significantly lower profits in 2023 should be expected, Davy analyst Colin Sheridan says in a research note. "The bumpy ride on this sector has some way to go," the Irish research firm says. Davy retains its neutral rating on the stock. Shares are down 6% at 1,244.0 pence. (joseph.hoppe@wsj.com)

Persimmon Faces Short Term Pain as Market Nerves Grow

1034 GMT - Persimmon reporting its cancellation rate on sales jumping to 28% from 21% just six weeks ago shows there is real nervousness in the market, says Julie Palmer, partner at Begbies Traynor. The house builder's management remain positive about hitting 2022's targets, and the company's properties generally sell for less than average, so it might be better insulated than some, Palmer says in a market comment. "There's no doubt there's a housing shortage in the U.K., and Persimmon is confident in the long-term that demand will remain strong. It's the short and medium term that's the issue: management say the situation is too uncertain to give guidance for 2023 other than they expect fewer sales, lower selling prices and squeezed profit," Palmer says. Shares are down 6.3% at 1,239.5 pence. (joseph.hoppe@wsj.com)

Persimmon Drops After Shareholder Return Shake-Up

1032 GMT - Persimmon shares are the top FTSE 100 faller, down 6% after the U.K. house-builder reported lower sales in the second half so far and forecast fewer legal completions next year than in 2022, potentially hitting 2023 margins. It also said it had decided to end its previous capital-return program following a review. Persimmon had no choice but to consider changing its dividend policy, having used significant cash reserves to pay the dividend in recent years, rather than funding it entirely from free cash flow, AJ Bell says. "A double-digit dividend yield was the market ringing the alarm bell over the fate of the dividend and a hefty cut can't be ruled out," Bell's investment director Russ Mould writes. (philip.waller@wsj.com)

DCC's Exposure to Squeezed Consumers Warrants Some Caution

0941 GMT - DCC's 1H results were a bit light with Ebita of GBP221 million versus consensus of GBP225 million, although this is the company's less significant half, RBC Capital Markets analyst Andrew Brooke says in a note. Even though management has executed operationally very well, the market is unlikely to give the company the benefit of the doubt until it sees material changes to the business mix come through, Brooke says. Consensus FY 2023 operating profit stands at GBP649 million, with RBC forecasting GBP634 million, reflecting some caution over consumer exposure, he says. "Whilst headline valuation remains undemanding, we continue to feel that exposure to a squeezed consumer warrants some caution," Brooke says.(anthony.orunagoriainoff@dowjones.com)


Contact: London NewsPlus; paul.larkins@wsj.com

(END) Dow Jones Newswires

11-08-22 0639ET