Excess Savings, Services Boost to Starve Off UK Recession

0842 GMT - The U.K. is expected to escape a recession thanks in part to households' excess cash savings amassed during the pandemic and a increased activity in the services sector, says Goldman Sachs in a report. "We are not projecting a recession in the U.K., as we expect that the large buffers of excess savings, combined with room to grow in services, will support aggregate consumption through the cost-of-living crisis," Goldman Sachs' Steffan Ball and Ibrahim Quadri say. They expect GDP growth to be flat in the second half of this year, though they see upside risks given stronger-than-expected retail sales data in April. (lorena.ruibal@wsj.com)

 
Companies News: 

THG Rejects GBP2.07 Bln Bid From Belerion Capital, King Street

THG PLC said late Thursday that has it rejected a proposal from investment companies Belerion Capital Group Ltd. and King Street Capital Management, LP for 170 pence a share, which valued the deal at 2.07 billion pounds ($2.58 billion).

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Genel Energy Appoints Luke Clements as CFO

Genel Energy PLC said Friday that it has appointed Luke Clements as chief financial officer with immediate effect.

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Next Fifteen Communications Agrees on GBP310.1M M&C Saatchi Acquisition

Next Fifteen Communications Group PLC said Friday that it has reached an acquisition agreement with M&C Saatchi PLC that values the company at around 310.1 million pounds ($386.8 million)

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Croda International Backs FY View Backed on Robust Performance

Croda International PLC said Friday that expectations for the full year are unchanged as input cost inflation continues to be recovered.

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Kibo Energy Appoints New CFO

Kibo Energy PLC said Friday that it has appointed Cobus van der Merwe as chief financial officer, effective June 1.

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Restore Says Four-Month Performance Was In Line With Views

Restore PLC said Friday that performance for the four months of the year was in line with the board's expectations despite higher-than-expected inflation.

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Wincanton FY 2022 Pretax Profit Rose on Lower Costs

Wincanton PLC said Friday that fiscal 2022 pretax profit rose after booking lower costs, and that it had good momentum in the new business pipeline and was confident in its future growth opportunities.

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Mast Energy Developments Appoints Pieter Krugel as CEO

Mast Energy Developments PLC said Friday that it has appointed Pieter Krugel as chief executive, effective June 1.

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TheWorks.co.uk Says FY 2022 Performance Ahead of Prepandemic Levels, Reinstates Dividend

Shares in TheWorks.co.uk PLC rose Friday after it said that its performance in fiscal 2022 was strong and ahead of prepandemic levels, and that it was reinstating dividends.

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Braemar Shipping Sees FY 2023 Adj. Operating Profit Above Views

Braemar Shipping Services PLC said Friday that it expects underlying operating profit for fiscal 2023 to be above market expectations, and that it intends to declare a dividend payout for fiscal 2022.

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Eagle Eye Sees FY 2022 Revenue, Adjusted Ebitda Ahead of Views

Eagle Eye Solutions Group PLC said Friday that it expects revenue and adjusted Ebitda for fiscal 2022 to be ahead of current market expectations by around 7% and 10%, respectively.

 
Market Talk: 

UK 10Y Gilt Yield Rise After Above-Forecast Retail Sales Data

0914 GMT - U.K. 10-year borrowing costs rise after official data showed stronger-than-expected retail sales in April. The 10-year gilt yield trades last at 1.909%, from 1.855% at Thursday's closing, according to Tradeweb. U.K. retail sales stayed flat at 1.4% in April compared to the previous month, defying expectations in a WSJ poll of economists that sales would fall 0.3% in the face of high consumer prices and low consumer confidence. Annual CPI inflation hit a 40-year high of 9% in April, up from 7% in March though below expectations for a 9.1% jump. (lorena.ruibal@wsj.com)

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Croda Stays on Track as Prices Help Offset Cost Rises

0836 GMT - Shares in Croda International are among the FTSE 100's biggest risers, up 3% after the chemical company reiterated full-year expectations as it continued to offset rising raw-material costs with higher prices. In a trading update accompanying its annual general meeting, Croda reported continued strong FY22 trading and robust demand in North America and Asia, despite China's coronavirus lockdowns. It said it expects strong profit margins and no change to consensus expectations. "We expect a muted share-price response," Jefferies analysts say in a note. (philip.waller@wsj.com)

 

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

(END) Dow Jones Newswires

May 20, 2022 05:37 ET (09:37 GMT)

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