Diageo's New CEO Should Focus on Premium Brands Return

Diageo's New CEO Should Focus on Premium Brands Return

0922 GMT - Diageo's early appointment of Debra Crew as CEO is unlikely to create any issues given that the succession was expected to happen in a month, AJ Bell investment director Russ Mould says in a note. The London-based liquor maker's new CEO will have to show her skills to make a good return from some of the expensive acquisitions of premium spirits in recent years amid increased volatility, Mould adds. "The company has focused on profitability, cash flow and growth in emerging markets under [former Chief Executive Ivan] Menezes, and tapping into the growing middle class in the developing world makes sense. However, recent times have shown this exposes Diageo to volatility too," Mould adds. ([e-mail])

COMPANIES NEWS:

Bigblu Broadband Reports Flat 1H Revenue

Bigblu Broadband said Monday that total revenue for the six months ended May 31 was flat on the year prior at 14.9 million pounds ($18.6 million) and that total customers at period end rose to 62,600 from 60,400.

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Diageo Names Debra Crew Interim CEO Effective Immediately

Diageo PLC said Monday that Debra Crew has been appointed interim chief executive officer with immediate effect, ahead of her planned joining date as CEO in July 1.

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Polymetal International Subsidiary CEO, CFO Resign

Polymetal International said Monday that the chief executive officer and the chief financial officer of its Russian-registered subsidiary JSC Polymetal have resigned from all executive positions.

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Lifesafe Sales in Year to April Grew More Than Expected

Lifesafe Holdings on Monday said its sales growth over the first four months of 2023 have continued to exceed its expectations and that it is well-placed for its seasonally busier second half.

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Hercules Site Services 1H Pretax Loss Narrowed as Revenue Jumped

Hercules Site Services said Monday that its pretax loss narrowed in the first six months of fiscal 2023 due to strong market dynamics and demand.

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Deepverge Makes Cost Reductions; Cautions 2022 Accounts Could Be Delayed

Deepverge said Monday that it will carry out cost reductions and may not be able to publish its 2022 accounts before the AIM rules deadline, and it is contemplating a potential sale of one or more lines of the business.

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Concurrent Technologies Says 2023 Performance in Line With Views

Concurrent Technologies said Monday that its performance in 2023 has been in line with market expectations and the board sees potential to improve further as supply recovers.

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Hargreaves Services Chair Roger McDowell Takes Temporary Sabbatical

Hargreaves Services said Monday that Chair Roger McDowell is taking a temporary sabbatical for personal reasons with immediate effect.

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Flowtech Fluidpower Chairman Steps Down Temporarily

Flowtech Fluidpower said Monday that Chairman Roger McDowell has handed over his role until Aug. 31 to Nonexecutive Director Jamie Brooke in order to tend to a family health matter.

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Verici's Tutivia Given Proposed Gapfill Rate Price; 2022 Loss Widened

Verici Dx said Monday that its Tutivia product has been given a proposed gapfill median rate price of $2,650 a test, and that its 2022 pretax loss widened on higher expenses.

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Avingtrans Chairman Roger McDowell Takes Sabbatical

Avingtrans said Monday that Chairman Roger McDowell was taking a temporary sabbatical for family health reasons with immediate effect, and that Les Thomas will assume the interim chairman position in his absence.

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Haydale Graphene Industries Appoints Patrick Carter as CFO

Haydale Graphene Industries on Monday named Patrick Carter as its new chief financial officer with immediate effect.

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Ironveld Appoints Malebo Ratlhagane Deputy CFO, Brian James Acting Group CFO

Ironveld said Monday Malebo Ratlhagane has been appointed deputy chief financial officer with immediate effect and that Brian James will take on the role of acting group CFO in a non-board capacity over a transitional period of around 12 months.

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Amicorp FS Plans London IPO, Raising Around $16.2 Mln in Placings

Amicorp FS (UK) said Monday that it expects share placings to raise around $16.2 million as part of its initial public offering on London's junior AIM in early June.

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Mondi Pulls Out of Syktyvkar Disposal Agreement; Committed to Eventual Sale

Mondi said Monday that it is pulling out of an agreement to sell Syktyvkar, its most significant facility in Russia, and two affiliated entities to Augment Investments, but that it remains committed to divesting the assets.

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Mallinckrodt Shares Slide Premarket on WSJ Report of Possible Bankruptcy Filing

Shares of Mallinckrodt tumbled more than 20% in premarket trading Monday after The Wall Street Journal reported that the drugmaker is considering once again filing for bankruptcy.

MARKET TALK:

SDX Energy's Moroccan Sales Agreement Reaffirms It as a Leading Regional Operator

1009 GMT - SDX Energy's renegotiated gas sales agreement with a key customer in Morocco, resulting in a higher gas price for its volumes produced in the North African country, is clearly a positive update, Shore Capital analyst Craig Howie writes in a research note. The energy company is positioned as a leading regional operator, combining strong reserve base with an active work program and emerging energy transition strategy, Howie says. "We continue to believe that the company represents an excellent platform for organic and inorganic expansion going forward," the analyst says. Shore Capital acts as broker to SDX Energy and as such doesn't provide recommendations on the stock. Shares are up 5.1% at 5.15 pence. ([e-mail])

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Euro-Denominated Gold Could Outperform in Near-Term

0952 GMT - Sticky inflation and a rising dollar could peg back gold futures in New York in the near-term, but gold backed by the euro could strengthen, analysts at Heraeus say in a note. Dollar-denominated gold may be looking overpriced due to high rates of inflation, which could mean further rate hikes from the Federal Reserve and in turn a rising dollar, they say. Furthermore, the euro has been weakening against the dollar since the start of May, while falling inflation rates in the eurozone mean expectations of ECB rate hikes have come down, the analysts add. "This points to there being less upside for the EUR/USD pair in the short term and could lead to outperformance in gold as the euro weakens." ([e-mail])

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Asos's Takeover Unlikely to Happen Given Timing, Turnaround Plans

0918 GMT - Reports that Asos received a bid approach of around GBP1 billion in late December from Turkey's Trendyol might be frustrating for investors given that the company didn't disclose the approach, AJ Bell investment director Russ Mould says in a note as shares rise 11%. If the reports are correct, it is assumed that talks aren't going forward, otherwise the group would have mentioned something by now given that it has been six months since the approach, he says. However, Asos's profitability has significantly improved at the start of the year and it raised GBP75 million to boost its turnaround plan, which could explain why the company wasn't ready for takeover. ([e-mail])

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Kromek's CZT-Based Product Line Commercialization Has Forecast Upside Potential

0847 GMT - Kromek announcing a new $1.5 million contract win in the civil nuclear market and that it expects additional orders for its new CZT--cadmium zinc telluride--based product line is in line with chemical, biological, radiological and nuclear revenue forecast growth, finnCap analyst Mark Brewer says. CBRN revenue is expected to rise to around GBP9.4 million in fiscal 2024 from around GBP7.5 million in fiscal 2023, and to GBP10.8 million in fiscal 2025 in line with forecast growth, Brewer says. "The commercialization of this product line potentially provides upside to forecasts in the outer years," Brewer says.finnCap has a 25.0 pence target price on the stock. Shares are up 1.8% at 5.60 pence. ([e-mail])

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Bigblu Broadband's Strong 1H Progress Prompts Upgrades

0839 GMT - Bigblu Broadband delivered strong 1H operational progress, however revenue of GBP14.9 million reflected Australasia's growth being affected by satellite internet provider Starlink, finnCap analyst Michael Hill says in a note. Still, analysts expect revenue to rebound in 2H as its Australian business SkyMesh leverages new NBN Co tariffs, which have received excellent feedback and substantially lowered churn in trials, Hill says. The Nordic business is stabilizing and its planned separation into two legal entities in Norway has been completed, Hill says. "We revise our revenue forecasts due to Australia and FX, we upgrade our adjusted Ebitda, equity free cashflow, and net cash, as management continues to generate efficiencies and focuses on realizing shareholder value," he says. finnCap has a 90.0 pence target price on the stock. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

06-05-23 0659ET