Sterling Unlikely to Rise Further on Brexit Deal After Brief Gains

Sterling Unlikely to Rise Further on Brexit Deal After Brief Gains

0822 GMT - Sterling's modest and brief gains after the U.K. and EU agreed a deal on post-Brexit Northern Ireland trading arrangements look sufficient, ING says. Sterling's initial rise reflects a warmer political relationship between the U.K. and EU but the agreement to overhaul the Northern Ireland protocol isn't a game changer for the currency, ING analyst Chris Turner says. Any approval of the deal by Northern Ireland's Democratic Unionist Party won't make much difference to sterling, he says. Weak U.K. growth and an "increasingly hawkish" European Central Bank that favors further interest-rate rises will "probably keep EUR/GBP supported for most of the year," he says. EUR/GBP rises 0.1% to 0.8804. ([e-mail])

COMPANIES NEWS:

Reckitt Benckiser Swung to 2022 Profit, Beat Market Views

Reckitt Benckiser Group PLC reported on Wednesday a better-than-expected swing to pretax profit in 2022 on the back of lower costs and raised its dividend payout.

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Purplebricks Receives Credible Takeover Interest After Launching Review

Purplebricks Group PLC said Wednesday that it has received several credible expressions of acquisition interest after launching a strategic review on Feb. 17, which management intends to pursue.

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Weir Group 2022 Pretax Profit Rose on Strong Order Activity

Weir Group PLC said Wednesday that 2022 pretax profit rose, beating consensus, on higher revenue due to strong order activity, and that 2023 started with a record order book and positive conditions in mining markets.

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Rathbones 2022 Pretax Profit Fell on Higher Costs, Raises Dividend

Rathbones Group PLC said Wednesday that pretax profit for 2022 fell on the back of higher costs and raised its dividend payout.

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Aston Martin 2022 Pretax Loss Widened as Pound Weakens Against Dollar

Aston Martin Lagonda Global Holdings PLC said Wednesday that it pretax loss widened for 2022 as it booked a hit from the weakening of the U.K. pound against the U.S. dollar.

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Persimmon 2022 Profit Fell on Charges; Sees Lower 2023 Completions, Profits -- Update

Persimmon PLC said Wednesday that pretax profit fell in 2022 on exceptional charges despite higher selling prices, and its current sales rate implies that 2023 completions will fall significantly together with profits.

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Artemis Resources to Raise A$2.6 Mln for Exploration Activities

Artemis Resources Ltd. said Wednesday that it will raise 2.6 million Australian dollars ($1.7 million) via a discounted placing, and that it will use proceeds to fund its exploration activities in 2023.

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International Personal Finance 2022 Pretax Profit Rose, Raises Dividend

International Personal Finance PLC said Wednesday that pretax profit for 2022 rose, supported by a positive performance across all three divisions and that it has raised its dividend payout.

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Nichols Swung to 2022 Pretax Profit on Cost Controls; Proposes Dividend

Nichols PLC on Wednesday reported a return to pretax profit for 2022 despite inflationary pressures which hurt the second half of the year in particular, and said it expects to meet market expectations for 2023.

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Haydale Graphene 1H Pretax Loss Widened; On Track to Meet Views

Haydale Graphene Industries PLC said Wednesday that its pretax loss widened for the first half of fiscal 2023 after booking higher costs, and that it was on track to meet expectations for the financial year.

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Ricardo Swung to 1H Pretax Loss on Impairments; to Meet FY 2023 Forecasts

Ricardo PLC on Wednesday reported a swing to pretax loss for the first half of fiscal 2023 after booking a number of impairments, but said it is on track to meet the board's full-year expectations.

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Glanbia to Buy Back Shares of Up to EUR50 Mln After 2022 Pretax Profit Rose

Glanbia PLC said Wednesday that pretax profit rose in 2022 driven by a robust brand performance, adding that it raised its dividend payout and that it will buy back shares.

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Glenveagh 2022 Profit Rose on Suburban Strength; Outlook Positive

Glenveagh Properties PLC said Wednesday that its 2022 pretax profit and revenue rose on 50% growth in its suburban division, and said it was well-placed for the future.

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GetBusy 2022 Pretax Loss Narrowed on Strong US Showing

GetBusy PLC on Wednesday reported a narrowed pretax loss for 2022 thanks to revenue growth, particularly in its U.S. market, and said it has had a strong start to the new year.

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Mobile Tornado to Raise GBP500,000; Sees 2022 Revenue Fall

Mobile Tornado Group PLC said Wednesday that it plans to raise 500,000 pounds ($601,150) via a discounted subscription and that it expects revenue for 2022 to fall on year.

MARKET TALK:

Reckitt's 2023 Guidance Underwhelms, RBC Says

0758 GMT - Reckitt's 2022 results were overall as expected, but 2023 targets suggests a cut on profit expectations, RBC Capital Markets analysts James Edwardes Jones and Emma Letheren say in a note. The consumer-goods company sees 2023 adjusted operating margin in line with or slightly above 2022 levels, indicating that EBIT margin will be down by around 80 basis points compared to a consensus decrease of 40bps, they say. Sales guidance also suggests a downgrade of 2% to 3% to 2023 consensus operating profit expectations. "Results for 2022 were a triumph of expectations management, with modest sales and profit beats versus company-compiled consensus, albeit a small miss at the EPS level," they add. ([e-mail])

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Weir's 2023 Margin Target Suggests Consensus Upside

0822 GMT - Weir reported a strong beat for 2022 with continued positive order momentum and an outlook which supports consensus upside with further growth in sales, profits and margins, RBC Capital Markets analyst Mark Fielding says in a note. The engineering company reiterated its 17% margin target for 2023, versus consensus of 16.5%, which when added to a stronger base in 2022 could suggest a mid-upper single digit consensus Ebita upside is possible, Fielding says. "We...continue to believe the underlying performance of Weir Minerals highlights not just a top tier mining equipment play, but also comparable traits to much higher rated 'quality' names in our wider coverage," he says. RBC rates the stock outperform and has a 2,275 pence target price. ([e-mail])

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Persimmon May Still Have Worst to Come

0827 GMT - Persimmon has ground out a creditable performance for 2022 considering last year's challenges, but the current outlook is rather more troubling, with early 2023 sales rates low on year and stark challenges, Interactive Investor says. The house builder's share price reflects a sector fraught with difficulties, falling 40% over the last year compared to a 7.4% jump for the wider FTSE 100, Interactive's Head of Markets Richard Hunter says. "After some considerable time of a positive consensus which included Persimmon as one of the preferred plays, the market consensus of the stock has now switched to a sell, implying that in terms of the economic cycle, the worst may yet be to come," Hunter says in a market comment. Shares are down 8.1% at 1,334.5 pence. ([e-mail])

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Persimmon's Lack of Formal Guidance Unlikely to Win Over Market

0829 GMT - Persimmon's selling rates in early 2023 showed the required minimum improvement from its fourth quarter collapse, but with no formal guidance for the full-year--and instead a range of margin scenarios offering meaningful downside to market views--there is a risk share-price upside won't materialize, Jefferies says. "While 2022's dividend of 60 pence is in line with [our estimates], with no set payout coverage for dividend set, investors may still feel they lack the clarity to buy this stock for yield," Jefferies analysts say in a research note. Jefferies retains its hold rating and 1,469.0 pence price target. Shares are down 7.4% at 1,344.5 pence. ([e-mail])

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Reckitt's Innovation Program to Drive Further Growth in 2023

0839 GMT - Reckitt Benckiser's 4Q performance, driven by its U.S. infant formula, was better than expected, and the group raised its dividend for the first time since 2019, Jefferies analysts say in a note. In the consumer-goods company's 2023 guidance, it said it expects to significantly increase brand equity investments to support an innovation program in 2023 which is anticipated to drive like-for-like growth of 1.8% and operating margins to 23.2%, the analysts say. "The target includes a return to growth in its disinfection portfolio from around +40% larger base versus prepandemic levels," they say. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

03-01-23 0359ET