Rising UK Borrowing Costs Jeopardize Cost-of-Living Crisis
Support
0704 GMT - U.K. public finances data paint a stark picture for
the government as it faces the dilemma of exactly how much support
it can introduce to help tackle the cost of living, says Paul
Craig, portfolio manager at Quilter Investors. "While borrowing is
on the rise again, it is interest payments that will be keeping the
chancellor up at night in the short-term, as political rivals
strive for both fiscal discipline and help for constituents," he
says. These interest payments are rising quickly, up 77% in the
financial year compared to the previous one, as a result of both
soaring inflation and yields rising, as interest rates are
increased to try and keep that inflation in check, he says.
(lorena.ruibal@wsj.com)
Companies News:
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Hikma Pharmaceuticals PLC said Tuesday that Siggi Olafsson has
resigned as Chief Executive Officer and will be temporally replaced
by the executive chairman and former CEO Said Darwazah.
---
RS Group FY 2022 Revenue, Pretax Profit Rose on Improved
Performance Across Regions
RS Group PLC said Tuesday that fiscal 2022 pretax profit and
revenue rose after experiencing improved performance in all three
of the regions in which it operates.
---
Shaftesbury Swings to 1H Profit, Doubles Dividend
Shaftesbury PLC said Tuesday that it swung to a profit in the
first half of the fiscal year, mainly due to revaluation surpluses,
and doubled its dividend.
---
Cranswick FY 2022 Pretax Profit Rose; Current FY Performance in
Line With Mgmt Views
Cranswick PLC on Tuesday reported a rise in pretax profit for
fiscal 2022, and said performance for the current financial year
has so far been in line with management expectations.
---
Topps Tiles 1H Pretax Profit Rose; Says Sales Continue to Grow
in 2H
Topps Tiles PLC on Tuesday reported a rise in pretax profit for
the first half of fiscal 2022 and said that its performance remains
strong, with like-for-like sales growing 5.7% in the first seven
weeks of the second half.
---
U.K. Regulator Clears National Express, Stagecoach Merger, But
Deal Will Not Proceed
The U.K. Competition and Markets Authority said Tuesday that the
merger between National Express Group PLC and Stagecoach Group PLC
didn't qualify for investigation under the merger provisions of the
Enterprise Act 2002.
---
Hilton Food Says 2022 YTD Performance in Line With Internal
Views
Hilton Food Group PLC said Tuesday that its performance in 2022
has been in line with internal expectations, with sales rising in
the year to date.
---
Homeserve FY 2022 Pretax Profit Rose on Strong Performance
Homeserve PLC said Tuesday that pretax profit for fiscal 2022
rose, driven by robust growth across all three divisions.
---
Greencoat Renewables to Buy Axpo's Wind Farms in France
Greencoat Renewables PLC said Tuesday that it has signed a deal
to buy a 65-megawatt portfolio of operating wind farms located in
France from Axpo Holding AG, its second portfolio acquisition in
the country.
---
On the Beach 1H Pretax Loss Narrowed; Sees Profitability for
2H
On the Beach Group PLC on Tuesday reported a narrowed pretax
loss for the first half of fiscal 2022, and said that it is
confident about achieving profitability in the second half.
---
Kier Performing in Line with Board's Views; Order Book Rose
6%
Kier Group PLC said on Tuesday that it has continued to perform
in line with the board's expectations over the four months to the
end of April, despite continued inflation pressures.
---
Hyve Group Swung to 1H Pretax Loss After Russia Exit, Insurance
Proceeds Decline
Hyve Group PLC said Tuesday that it swung to a pretax loss for
the first half of fiscal 2022 after it exited Russia and its
insurance proceeds relating to canceled events declined.
---
Boohoo Group Reaches Final Settlement for California Claim
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settlement without admission of liability in relation to the
Californian class action claim.
---
Actual Experience 1H Loss Widened as Costs Rose, Sales Fell
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first half of the fiscal year, as it raised investment in sales and
marketing.
---
SSP 1H Pretax Loss Narrowed as Pandemic Restrictions Eased
SSP Group PLC said Tuesday that its pretax loss narrowed for the
first half of fiscal 2022 as revenue recovered due to the easing of
pandemic restrictions, and that it is well-positioned for a strong
summer in its key markets, notwithstanding supply-chain issues in
the travel industry.
---
Trinity Exploration Profits Rose in 2021, to Restart Drilling in
2H -- Energy Comment
Trinity Exploration & Production PLC on Tuesday reported
improved profits for 2021, reflecting higher oil prices, and
confirmed that it will resume drilling exploration in the second
half of this year. Here's what the Trinidad & Tobago-focused
oil company had to say:
---
BrandShield Systems Raises GBP1 Mln to Fund Growth
BrandShield Systems PLC said Tuesday that it has raised 1
million pounds ($1.3 million) via a share subscription and will use
the money toward key growth initiatives.
---
Lords Group 2021 Pretax Profit Doubled, Is Confident on
Medium-Term Targets
Lords Group Trading PLC reported on Tuesday a more-than-doubled
pretax profit for 2021 and said that it is confident about meeting
its medium-term targets.
---
Avon Protection Swung to 1H Pretax Loss; CEO to Step Down
Avon Protection PLC said Tuesday that it swung to a first-half
pretax loss as the extended delay in the sign-off of the U.S.
federal budget affected customers.
---
Restaurant Group Says 2022 Expectations Unchanged Despite
Inflation Hit
Restaurant Group PLC said Tuesday that its expectations for 2022
remain unchanged despite increased food and drink inflation.
---
Helical FY 2022 Pretax Profit Rose, Increases Dividend
Helical PLC said Tuesday that pretax profit for fiscal 2022 rose
and that it increased its dividend payout.
Market Talk:
UK Debt Servicing Payments Likely to Rise Further
0706 GMT - U.K. debt interest payments are likely to rise
further as the Bank of England tightens policy to combat soaring
inflation, says Paul Craig, portfolio manager at Quilter Investors
in an email. They are already up 77% in the 2022-23 financial year
compared to the previous one and "these figures are only likely to
get worse as the cost-of-living crisis intensifies," he says. The
economy has the potential to fall into recession later this year
and the government will want to try and avoid that at all costs, he
says, adding that "should it see borrowing as the way out, these
interest payments are going to grow at a significant rate and place
additional strain on the treasury, at a time when GDP is also
falling." (lorena.ruibal@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
May 24, 2022 03:24 ET (07:24 GMT)
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