Crest Nicholson's Profit Warning Weighs on Sector

Crest Nicholson's Profit Warning Weighs on Sector

0835 GMT - Crest Nicholson's profit warning comes after U.K. house builders have struggled with worsening trading conditions over the summer, and the issues aren't going away soon, Interactive Investor's head of investment Victoria Scholar says in a market comment. With mortgage borrowing becoming increasingly expensive, U.K. house builders are feeling the squeeze, "particularly given that strong wage growth and core inflation means that interest rates are expected to remain elevated for some time," Scholar says. The profit warning weighs on other sector stocks like Taylor Wimpey, Persimmon and Barratt Developments, which are trading at the bottom of the FTSE 100. Shares in Crest Nicholson are down 10% at 175.50 pence, its lowest in ten months. ([e-mail])

COMPANIES NEWS:

Crest Nicholson Lowers Full-Year Profit View On Worsened Business Conditions

Crest Nicholson lowered its adjusted pretax profit full-year expectation on the back of continuing high inflation and rising interest rates.

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DP Eurasia Plans to File Bankruptcy for Russian Business

DP Eurasia has started the process to file bankruptcy for its Russian business, ending the planned sale process of DPRussia as a going concern and therefore the group's presence in Russia.

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TruFin Gets Private Equity Offer for Vertus Capital Stake Worth GBP3.2 Mln

TruFin has conditionally accepted an offer for its majority shareholding in Vertus Capital from a private equity party worth 3.2 million pounds ($4.1 million).

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Fulcrum Utility to Delist Shares From London's AIM After Widened Pretax Loss

Fulcrum Utility Services will seek to cancel its share listing on London's Alternative Investment Market in order to reduce costs after the group reported a widened pretax loss for fiscal 2023.

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FS Gaming Investments Cuts 888 Holdings Stake to 4.55% From 6.57%

888 Holdings said that FS Gaming Investments has cut its shareholding in the business to 4.55% from 6.57%.

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Thungela Resources Revises Operational Guidance After Profit, Revenue Drop

Thungela Resources narrowed its coal production guidance while changing its cost guidance for the full year after profit and revenue dropped in the first half.

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Gattaca to Launch Further GBP500,000 Share Buyback

Gattaca intends to return up to 500,000 pounds ($636,750) to shareholders through a series of share buybacks.

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Trident Royalties Invests in West African Gold Project

Trident Royalties said it has agreed on an acquisition deal with a group of private royalty holders over a gold project in Mali for up to $5.5 million.

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Ferro-Alloy Shares Plummet on Expected Hit to Full-Year Results

Shares in Ferro-Alloy Resources dropped 21% after the company said it expects its full-year production and financial results to take a hit from delays to concentrate supply and continuing low vanadium prices.

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Tirupati Graphite to Focus on PranaGraf Deal

Tirupati Graphite said it will explore options to combine its business with PranaGraf Materials & Technologies after an initial acquisition couldn't be completed due to regulatory restrictions.

MARKET TALK:

JD Sports Likely to Benefit From US Improving Outlook

0806 GMT - JD Sports Fashion could benefit from an improving consumer outlook in the U.S. given its direct exposure to the country, RBC analysts say in a note. The London-listed fashion retailer's U.S. sales represents around 30% of its total sales, they say. Added to that, recent U.S. retail earnings have showed an improved outlook for both 2H and 2024, the analysts say. "We think that the U.S. consumer has held up better than feared. We note a number of companies implying that the worst is behind them and, despite ongoing uncertainty, we think there is an expectation for improvement to come next year, if not earlier," they add. ([e-mail])

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Ferro-Alloy Resources' Supply Issues Are Disappointing

0802 GMT - Ferro-Alloy Resources' supply constraint issues are disappointing as it likely won't meet production views in the third quarter, Shore Capital analyst Sheldon Modeland writes in a research note. Following on from the London-listed vanadium producer's best quarter to date in 2Q, Shore Capital had expected increased production in 3Q, Modeland says. As such, the U.K. investment group's full-year forecasts are placed under review until the secondary plant returns to full capacity, he says. Shore Capital keeps a 10.75-pence price target on the stock. Ferro-Alloy Resources is a house stock of the U.K. investment group. Shares are down 16% at 9.0 pence. ([e-mail])

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