The FTSE 100 closed slightly lower on Tuesday as the retail
sector felt the effects of rising prices. Retailers Kingfisher PLC
and JD Sports Fashion PLC led the U.K. index's losses of the
trading session, falling 8.5% and 8.0%, respectively. Meanwhile,
Compass Group PLC and Unilever PLC were the top risers of the
index, up 3.3% and 3%, boosted by confident outlooks despite the
challenging macroeconomic environment.
Companies News:
Shell USA, Shell Midstream Partners to Merge in $1.96B Deal
Shell USA Inc. and Shell Midstream Partners L.P. have agreed to
merge.
---
Rolls-Royce Holdings Names Tufan Erginbilgic as Next CEO
Rolls-Royce Holdings PLC said Tuesday that it has appointed
Tufan Erginbilgic as its new chief executive officer from Jan. 1,
2023, replacing Warren East who said in February that he would be
stepping down.
---
Compass Group Raises FY 2022 Growth View on Recovery,
Acceleration
Compass Group PLC said Tuesday that it was raising its fiscal
2022 organic revenue growth guidance due to the significant
acceleration in growth and continuing recovery of its base
business.
---
Wickes Group 1H Sales Rose; Sees Outlook in Some Markets
Softening
Wickes Group PLC said Tuesday that it has had strong sales in
the first half, but has seen some softening in its DIY and
do-it-for-me, or DIFM, markets in recent weeks.
---
Anglo American's Kumba Reports Lower 1H Ebitda as Iron-Ore
Production, Prices Fell
Kumba Iron Ore Ltd. on Tuesday reported lower Ebitda for the
first half of the year, as its iron-ore production and realized
prices declined.
---
Unilever Raises 2022 Sales Guidance on Robust Pricing Despite
Volume Drop
Unilever PLC said Tuesday that it expects underlying sales
growth for the full year to exceed previous guidance, driven by
higher prices, although volumes are forecast to be under
pressure.
---
Games Workshop FY 2022 Pretax Profit, Revenue Rose; Confident
for Future
Games Workshop Group PLC said Tuesday that its fiscal 2022
pretax profit and revenue both rose, and it was confident for the
future.
---
easyJet 3Q Headline Pretax Loss Narrowed; 4Q Capacity Cut to
Meet Airport Caps
easyJet PLC said Tuesday that headline pretax loss narrowed as
revenue increased for the third quarter of fiscal 2022, and that it
has taken action to remove capacity in the fourth quarter due to
airport-imposed caps.
---
Reach 1H Pretax Profit Rose as Adjusted Items Fell on Year
Reach PLC said Tuesday that pretax profit for its first half
rose, reflecting an on-year reduction in adjusted items.
---
Brighton Pier Group Reports Pandemic Recovery Sales Boom for FY
2022
Brighton Pier Group PLC said Tuesday that sales for fiscal 2022
nearly tripled, helped by a pandemic-recovery boom in demand for
entertainment and government initiatives to support the hospitality
industry.
---
Drax 1H Profits Rose as Power Generation Business Performed
Strongly
Drax Group PLC on Tuesday reported higher profits for the first
half of 2022, reflecting a strong performance from its power
generation plants.
---
Mitie Group 1Q Revenue Rose on New Contract Wins,
Acquisitions
Mitie Group PLC said Tuesday that first-quarter revenue rose
thanks to new contract wins and acquisitions.
---
Shoe Zone Reports Stronger-Than-Expected Summer Performance
Shoe Zone PLC said Tuesday that its performance has been
stronger than expected since June 29.
---
OnTheMarket Reports Positive Start to FY 2023, With Good Market
Fundamentals
OnTheMarket PLC said Tuesday that it has made a positive start
to fiscal 2023, with performance in line with its expectations.
Market Talk:
Wickes Rickety Recent Trading Leads to Forecast Reductions
0854 GMT - Wickes's update noted strong trading in the second
quarter, but the company cut its 2022 guidance on slower trading in
recent weeks in July, Citi says. The U.K. home improvement
retailer's caution leads Citi to lower its pretax profit estimate
for 2022 by around 8%, and for 2023-2024 by 16%-17%, reflecting
sharper demand moderation ahead, Citi analyst Ami Galla says in a
research note. "The strength of [a] group's local trade customer
base should support market outperformance medium term but near term
focus is likely to weigh on the scale of demand moderation into
2023 and scope for cost optimization," the U.S. bank says. Citi
retains a buy rating on the stock and cuts its price target to 260
pence from 303 pence. Shares are down 17% at 139.5 pence.
(joseph.hoppe@wsj.com)
UK Life Insurance Looks Set For Solvency Gains -- Market
Talk
0852 GMT - The U.K. life insurance sector is benefiting from
positive trends on pension risk transfer and improving solvency II
capital ratios--the insurer's capital strenght--backed on macro
movements as interim results approaches, RBC Capital Markets
analyst Mandeep Jagpal says in a research note. The U.K. bulk
annuity volumes on 1H were between GBP10 billion and GBP12 billion,
comfortably surpassing the GBP7 billion written in the same period
of the previous year, Jagpal says. However, the sector shares are
performing below the market despite favorable trading conditions
and attractive dividend yields, with M&G being the only one in
positive territory YTD, the analyst notes.
(michael.susin@wsj.com)
Wickes Shares Slump After Profit Warning -- Market Talk
0847 GMT - Wickes shares drop 21% to 134 pence after the U.K.
home-improvement chain reported weaker demand and issued a
full-year profit warning. "There will be some disappointment
following today's [circa-10% pretax profit] guidance cut, albeit it
reflects the tougher wider consumer backdrop rather than anything
company-specific," Liberum Capital analysts say in a note. "It also
needs to be set against what was a robust 1H performance and what
would still be a commendable full-year out-turn in the current
environment if the new guidance is hit." Liberum cuts its price
target to 360p from 425p, but keeps its buy recommendation, saying
the shares fail to reflect the quality of the business, longer-term
growth prospects, strong cash generation and healthy balance sheet.
(philip.waller@wsj.com)
Compass's Structural Growth Trends Point to Share Price Rise
0831 GMT - Compass Group looks set to continue to benefit from
favorable structural growth trends, Shore Capital research analyst
Greg Johnson says in a note. Organic revenue growth for the U.K.
catering contractor in the third quarter accelerated to 43.4% from
37.9%, likely driven by net new business, price inflation and a
continued recovery in base volumes, he says. The net new business
trend more than doubles historic rates and this looks as if it
could prove stronger for longer, Johnson notes. Revenue growth
might also remain strong with the potential to reach GBP35 billion,
and under this scenario shares could reach 2,600 pence, he
suggests. Shore Capital has a buy rating on the stock. Shares trade
up 2.4% at 1,889.00 pence. (kyle.morris@dowjones.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
July 26, 2022 12:27 ET (16:27 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
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