UK Home Builders Drop as House Prices Fall in April

UK Home Builders Drop as House Prices Fall in April

0928 GMT - U.K. home builders lose ground after industry data showed house prices falling last month. Average house prices decreased by 0.3% to GBP286,896 in April--following a 0.8% rise in March--and the annual rate of house-price gains slowed to 0.1% versus 1.6% in March, according to the Halifax House Price Index. "The housing market was in focus after Halifax's latest HPI showed a decline in prices in April after three months in a row of recovery," AJ Bell investment director Russ Mould writes. Berkeley Group Holdings is the sector's biggest top-flight faller, down about 2%, while other FTSE 100-listed builders including Barratt Developments, Taylor Wimpey and Persimmon and second-tier players such as Vistry, Redrow and Bellway also drop. ([e-mail])

 
Companies News: 

Fresnillo Doesn't See Material Impact From Mexico's New Mining Law

Fresnillo PLC on Tuesday said it doesn't believe the enactment of Mexico's new federal mining law will have any material impact on its operations.

---

SDX Energy Names William McAvock as New CFO

SDX Energy PLC on Tuesday appointed William McAvock as its chief financial officer with immediate effect.

---

JD Sports in Talks to Buy Groupe Courir for EUR325 Mln

JD Sports Fashion said Tuesday that it has entered negotiations with owners of Groupe Courir to potentially buy the company for 325 million euros ($357.7 million), and it is reviewing options to simplify its European shareholdings.

---

Direct Line Insurance 1Q Gross Written Premiums Rose

Direct Line Insurance Group said Tuesday that adjusted gross written premiums for the first quarter rose, driven by its motor and home divisions, and that its earnings outlook for 2023 continued to be challenging.

---

WANdisco Names Stephen Kelly as Interim CEO

WANdisco said Tuesday that it will appoint Stephen Kelly as interim chief executive officer, effective Wednesday.

---

Rainbow Rare Earths Raises GBP7.5 Mln for South African Project

Rainbow Rare Earths on Tuesday said it had raised 7.5 million pounds ($9.5 million) via private share placement to complete its rare earth pilot project in South Africa.

---

TT Electronics Revenue Rose In First Four Months of 2023

TT Electronics said Tuesday that its revenue rose in the first four months of the year as its order intake nears record levels.

---

Purplebricks No Longer Sees Cash Generation in Early FY 2024

Purplebricks Group PLC said Tuesday that it doesn't expect to return to cash generation in early fiscal 2024 as previously forecast, and potential transactions being contemplated in its sales process could be at a discount to share price.

---

Victrex 1H Pretax Profit Fell on Lower Sales Volumes

Victrex said Tuesday that pretax profit for the first half of fiscal 2023 fell as sales volumes declined, with full-year volumes tracking to be down by a double-digit percentage compared with fiscal 2022.

---

Treatt 1H Profit Fell on Exceptional Items; Revenue Rose

Treatt said Tuesday that its first-half pretax profit fell 26% on exceptional items, though revenue rose and it hiked its dividend.

---

Mincon Group's 1Q Revenue Fell as Mining Segment Lags

Mincon Group said Tuesday that revenue has declined in the first quarter of 2023 but that margins have improved, and that it keeps a positive outlook for the year.

---

MacFarlane Group on Track to Meet 2023 Views After 1Q Growth

MacFarlane Group PLC on Tuesday said it is on track to meet its full-year expectations after a solid start to 2023.

---

Petards 2022 Pretax Profit Fell on Lower Rail Market Sales

Petards Group said Tuesday that pretax profit and revenue fell in 2022 due to lower sales in the rail market.

---

Marshalls' Performance to End of April Hurt by Lower New Housing Starts; Lowers Guidance; Shares Fall

Shares in Marshalls fell Tuesday after it said National House Building Council new housing starts in the first quarter were 27% lower than in 2022 and that this hurt its performance and lowered guidance.

---

Osirium Technologies 1Q Revenue Rose; Shares Jump

Shares in Osirium Technologies rose 13% on Tuesday after the company reported continued positive trading over the first quarter on new customer wins and license upsells and expansions with existing customers.

---

AltynGold Shares Rise as Trading Resumes After Publication of 2022 Audited Results

Shares in AltynGold PLC rose 22% on Tuesday after the company's trading suspension was lifted upon publication of its audited results for 2022.

---

Echo Energy Shares Soar As Company Plans Sale of Argentinian Assets

Shares in Echo Energy jumped Tuesday after the company said it plans to sell 65% of its current 70% working interest in the assets in Santa Cruz Sur, Argentina, to Selva Maria Oil and InterOil Exploration and Production for up to 1.73 million pounds ($2.2 million).

---

Kanabo Appoints Ian Mattioli Nonexecutive Chairman, to Raise Around GBP2.5 Mln

Kanabo Group said Tuesday that it has appointed Ian Mattioli as nonexecutive chairman with immediate effect, and that it will raise around 2.5 million pounds ($3.2 million) via a discounted share issue subscription.

---

Tirupati Graphite Shares Rose as FY 2023 Profit, Sales Increased

Tirupati Graphite PLC shares rose Tuesday after it said fiscal 2023 gross profit and sales rose significantly.

---

Kin and Carta Buys Forecast Data for GBP3 Mln to Strengthen Data, AI Capabilities

Kin and Carta said Tuesday that it has bought Forecast Data for an initial 3 million pounds ($3.8 million) to strengthen its data and artificial intelligence capabilities.

---

Griffin Mining 2022 Pretax Profit, Revenue Fell on China Operation Suspensions

Griffin Mining said Tuesday that its pretax profit and revenue fell in 2022 as results were severely hit by several suspensions in operations for nearly five months of the year.

---

Amala Foods Shares Rise on Reverse Takeover Opportunities

Amala Foods PLC shares rose Tuesday after it said it has prepared a shortlist of reverse takeover opportunities, and it has sufficient funding to carry out a transaction.

 
Market Talk: 

Direct Line Insurance's High Claims Inflation Views Hurt Dividend Outlook -- Market Talk

1012 GMT - Direct Line Insurance 1Q update showed another setback in it motor business and saw its solvency ratio not improving, RBC Capital Markets analysts Derald Goh and Sarah Chong say in a note. Motor's higher-than-anticipated claims from physical damage, affecting both current and prior-year losses also hurt the commercial book which comprises 25% motor, the analysts say. Forward view of claims inflation also remains at high single digits across both motor and home and although no meaningful 1Q deflation was expected, the deterioration was surprising, they add. Furthermore analysts see higher risks to 2023's dividend outlook in the absence of tangible signs of recovery to capital and earnings. "This cements our expectations of a dividend reset this year," the analysts say. ([e-mail])

Next's Total Platform Has Long-Term Potential

0944 GMT - Clothing retailer Next's Total Platform offer is expected to boost long-term financial estimates and valuation, RBC Capital Markets analyst Richard Chamberlain says in a note. The platform offers brands Next's infrastructure and online services, including next day delivery, quick refunds and AI-driven search and recommendations, he says. Currently operational for four clients, the platform is guided to generate revenue of around GBP177 million and profit around GBP22 million in the year to Jan 2024, add three more clients from next year and a further eight in 2025/26 which we see with a potential to generate around GBP50 million in revenue each, Chamberlain estimates. ([e-mail])

Direct Line's Elevated Claims Severity Inflation Hasn't Gone Away

0942 GMT - Direct Line Insurance's 1Q premiums rose 10%, with growth driven by its commercial division, which grew 28% in the period, Jefferies analysts note. The nonlife insurer's motor business saw 1Q average renewal premiums rise 19% in the period, which reflected 2022 and 1Q rate increases, with analysts viewing this as a positive. Still, the company said it experienced further adverse claims development in respect of late 2022 and early 2023 in motor, with this putting pressure on earnings in 2023, the analysts say in a note. "Whilst the quantum of the impact is unclear, what is clear is that elevated claims severity inflation has not gone away," analysts say. Jefferies rates the stock buy and has a 210 pence target price. ([e-mail])

Beazley's Has Attractive Long-Term Characteristics, Prospects

0941 GMT - Beazley's strong return outlook for the next two years is not reflected in its current valuation levels, J.P.Morgan Cazenove says in a note. "We expect the current issues to only be near-term noise rather than longer term headwinds," analyst Kamran M Hossain says, noting the upcoming first-quarter results aren't expected to solve concerns around its cyber business' likely weak new business volumes after its tightened policy wording. Hossain also points to the specialty insurer's long-term characteristics: an optimal operating structure, alignment with innovation and strong track record of growth and profitability. The broker rates the stock overweight. Shares, which have lost 13% year-to-date, climb 2.15% at 594 pence to the top of the FTSE 100. ([e-mail])

UK House Price Growth Slowing Suggests Stability Is Returning

(MORE TO FOLLOW) Dow Jones Newswires

05-09-23 0709ET