UK February Inflation Rebound Likely Secures Bank of England Hike

0740 GMT - The reacceleration of U.K. inflation may be enough to tilt the Bank of England toward raising interest rates to 4.25% from 4% on Thursday, despite the recent turmoil in the banking system, Paul Dales, chief U.K. economist at Capital Economics, says in a note. Overall CPI in February rose to 10.4% from 10.1%, but more worrying is the rebound in core inflation to 6.2% from 5.7%, which clearly isn't consistent with the BOE's target of 2%, he says. However, the recent tightening in financial conditions caused by the banking turmoil will probably weaken U.K. economic activity and underlying price pressures, though the central bank may want to see hard evidence of that before it stops raising rates, Dales says. (edward.frankl@wsj.com)

 
Companies News: 

Superdry to Sell Intellectual Property Assets in APAC for $50 Mln

Superdry PLC said Wednesday that it has signed an intellectual property transfer agreement with South Korea-based Cowell Fashion Co. Ltd. for the sale of its assets in certain countries within Asia Pacific for an upfront payment of $50 million in cash.

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XPS Pensions Sees 2023 Revenue Above Consensus

XPS Pensions Group PLC said Wednesday that it expects revenue for fiscal 2023 to be ahead of current consensus and that the board expects operational gearing to have improved after having managed costs well.

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Vistry 2022 Pretax Profit Fell on Exceptional Costs; Early 2023 Sales Improving

Vistry Group PLC said Wednesday that 2022 pretax profit fell on exceptional costs and despite a rise in revenue, and it reported an encouraging start to the year with a trend of improving sales.

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Braemar to Report FY 2023 Rise in Revenue, Underlying Operating Profit

Braemar PLC said Wednesday that it expects to report a rise in revenue and underlying operating profit for fiscal 2023, and that the board is looking at fiscal 2024 with confidence.

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Fevertree 2022 Pretax Profit Fell on Glass, Freight Costs, Backs 2023 Views

Fevertree Drinks PLC said Wednesday that pretax profit for 2022 fell, mostly driven by increased glass costs and trans-Atlantic freight costs, but backed its 2023 guidance and raised the dividend payout.

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Ten Entertainment 2022 Profit, Revenue Significantly Rose Postpandemic

Ten Entertainment Group PLC said Wednesday that its 2022 pretax profit significantly increased together with total sales, as it delivered its first undisrupted trading year since 2019.

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Pendragon 2022 Pretax Profit Fall on Cost Inflation, Increased Interest Rates

Pendragon PLC said Wednesday that its 2022 pretax profit fell on cost inflation and increased interest rates, although revenue grew slightly, and that it won't proposed a final dividend.

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Bytes Technology Sees FY 2023 Sales and Profit Rising on High Demand

Bytes Technology Group PLC said Wednesday that it delivered strong sales and profit growth in fiscal 2023, on strong demand for its software and IT services.

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Titon Holdings FY 2023 Performance in Line With Views; Sees 2H Return to Profitability

Titon Holdings PLC said Wednesday that its performance in fiscal 2023 has been in line with the board's expectations and that directors continue to expect a return to profitability in the second half of the year ending Sept. 30.

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Hostelworld 2022 Pretax Loss Narrows As Sector Recovers

Hostelworld Group PLC on Wednesday reported a narrowed pretax loss for last year on revenue that rose more than four-fold due to higher bookings on the back of a strong postpandemic recovery in the travel sector.

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Arrow Exploration Gets Better-Than-Expected Results at Colombia Well

Arrow Exploration Corp. said Wednesday that initial production rates from its new Rio Cravo Este-4 well in Colombia have been very encouraging, with better-than-expected flow rates.

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Mpac 2022 Pretax Profit Hurt by Supply-Chain Issues; CEO to Step Down

Mpac Group PLC said Wednesday that despite a rise in revenue, its pretax profit fell in 2022, blaming global supply-chain issues and that Chief Executive Officer Tony Steels plans to step down.

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Judges Scientific 2022 Pretax Profit Rose; Says Supply-Chain Disruptions Persist

Judges Scientific PLC said Wednesday that supply-chain disruptions persist and that its 2022 pretax profit rose as revenue increased on higher organic growth and an acquisition's contribution.

 
Market Talk: 

Sterling Rises as Strong UK Inflation Tips Balance Toward BOE Rate Hike

0756 GMT - Sterling rises after U.K. inflation data was unexpectedly strong, with headline annual CPI increasing by 10.4% in February, making a rate increase by the Bank of England on Thursday look more likely. Economists polled by The Wall Street Journal had expected CPI to decline to 9.9%, from January's 10.1%. "Tomorrow's decision by the MPC [BOE's Monetary Policy Committee] was a coin flip before the red-hot data. These striking numbers should be an important input and now tip the balance in favor of another 25 basis-point rate hike," writes Jamie Dutta, market analyst at online brokerage Vantage. GBP/USD is last up 0.4% at 1.2262, from 1.2230 before the data were released. EUR/GBP falls 0.4% to 0.8780, versus 0.8802 beforehand. (jessica.fleetham@wsj.com)

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Superdry's Intellectual Property Sale Likely to Boost Shares

0753 GMT - Superdry made a phenomenal deal in selling its intellectual property rights in Asia-Pacific to a third party in a movement that could deliver value for shareholders, Liberum analysts say in a note. "This deal de-risks the balance sheet, protects the profit and loss statement and whilst a lot of work is yet to be done on its cost reduction program, is a very positive step in the right direction. The shares should rise significantly today," they say. The deal also comes after its exit of China in 2020, a territory that previously delivered low single digit pretax profit, the analysts add. (michael.susin@wsj.com)

 

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

(END) Dow Jones Newswires

March 22, 2023 04:18 ET (08:18 GMT)

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