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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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Shoe Zone Reports Stronger-Than-Expected Summer Performance

Shoe Zone PLC said Tuesday that its performance has been stronger than expected since June 29.

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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)

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