Economic Undertakings

UK economic growth set to halve in 2022, study finds

UK economic growth set to halve in 2022, study finds

11.21 GMT – UK economic growth is set to halve this year as the effects of coronavirus, the UK’s exit from the EU and the war in Ukraine weigh in, a study has found. The British Chamber of Commerce has lowered its forecast for UK GDP growth in 2022 to 3.6%, less than half of last year’s 7.5%. “The UK economy is set to falter in the coming months as the suffocating effect of rising inflation, supply chain disruption and higher taxes weaken key drivers of output including consumer spending and business investment,” said Suren Thiru, director of economics at the BCC. said. “Our latest outlook suggests that a legacy of Covid and Brexit is an increasingly unbalanced economy, with a growing reliance on household spending to drive growth,” he says. ([email protected])

 
Companies News: 

D4t4 Solutions extends its share buyback program by three months

D4t4 Solutions PLC announced on Friday that its board of directors had decided to extend its share buyback program by three months.

Hammerson’s 2021 loss narrows as adjusted profit rises

Hammerson PLC announced a reduced loss for 2021 on Friday, as its adjusted profit more than doubled.

Ten Lifestyle expects FY2022 Adjusted Ebitda to be below expectations

Ten Lifestyle Group PLC said on Friday it expects adjusted EBITDA for the 2022 financial year to be below expectations, but revenue to be in line with views and the impact of the conflict between Russia and the Ukraine on its activities is limited.

Malvern International Reaches Debt Restructuring Agreement

Malvern International PLC said on Friday it had successfully negotiated the restructuring of its 2.6 million pound ($3.5 million) credit facility.

Malvern International warns of falling annual revenue on 2H Hit

Malvern International PLC said on Friday its performance in the second half of 2021 was impacted by international travel restrictions, with both period and full-year revenue expected to be lower than both the first half and 2020.

Verici Dx plans £10m funding round for strategic development

Verici Dx PLC said on Friday it plans to raise around 10 million pounds ($13.3 million) through a share placement and subscription, and will use the money for its near-term strategic development plan. The developer of clinical diagnostics for organ transplantation said it would issue at least 28.6 million new ordinary shares at 35 pence each via a book incorporation process. The price is a 6.7% discount to Thursday’s closing price of 37.5 pence.

Chill Brands Says 2022 Revenue Will Be Affected by Supply Chain Delays, Seeks U.S. Partner

Chill Brands Group PLC said on Friday it expects fiscal 2022 revenue to be lower due to supply chain delays, and is seeking a partner in the United States to manufacture its products.

Morgan Advanced Materials Moves to 2021 Pretax Earnings, Posts 4-7% Revenue Growth in 2022

Morgan Advanced Materials PLC said on Friday it moved to pretax profit in 2021 on the back of a market rally, increased its dividend payout and said it expects organic revenue growth this year.

Borders & Southern seeks $1.8 million capital raise to develop gas discovery

Borders & Southern Petroleum PLC on Friday announced plans to raise up to $1.8 million to evaluate and develop its Darwin gas and condensate discovery in the Falkland Islands.

[email protected] Non-Executive Chairman James Coyle Steps Down; Fall in stocks

Shares of [email protected] Capital PLC fell on Friday after the company said non-executive chairman James Coyle had resigned effective immediately and was leaving the company for personal reasons.

FBD Holdings 2021 Pre-Tax Profit Soars, Declares Dividend

FBD Holdings PLC said Friday that pre-tax profit for 2021 soared due to lower claims and declared a dividend payout.

UK Watchdog may clear acquisition of The Vet by CVS Group, given commitments

The UK Competition and Markets Authority said on Friday it could accept undertakings provided by CVS Group PLC to address its concerns over the company’s acquisition of The Vet.

Royal London Mutual Insurance’s 2021 pre-tax profit increased, assets under management hit new high

On Friday, the Royal London Mutual Insurance Society Ltd. announced an increase in pre-tax earnings and assets under management for 2021.

 
Market Talk: 

Low Rentokil Initial stock price seen as a buying opportunity

11:25 GMT – Rentokil Initial’s margins are expected to improve in 2022, benefiting from a recovery in its core business, lower M&A spending and better pricing, according to RBC Capital Markets. The Canadian bank sees the acquisition of Terminix Global Holdings Inc. as likely to happen and a significant upside if the deal closes. RBC says the current share price slump can be seen as a good buying opportunity as it raises 2022 earnings per share forecast by 2%. RBC has an outperform rating and a price target of 645.0 pence. The shares are down 2.2% at 486.9 pence. ([email protected])

Fresnillo results focus as silver prices rise

1124 GMT – The price of silver has risen in recent weeks as investors seek safe-haven assets and a place to hide in the wake of Russia’s invasion of Ukraine, making 2021 earnings timing of Particularly interesting Fresnillo, said AJ Bell. Fresnillo operates in Mexico and is the largest silver miner in the world. Analysts expect it to post an 11% increase in Ebitda for 2021 to $1.3 billion, implying a 15% year-on-year decline for the second half, AJ said. Bell. Despite the recent rally in precious metals prices, shares of Fresnillo are down 20% year-to-date due to disappointing operating performance. The group will publish its results on Tuesday. ([email protected])

The pound may not be affected if the BOE becomes more cautious

10.35 GMT – The Bank of England may take a more cautious approach to raising interest rates in light of the Russia-Ukraine dispute, but that is unlikely to have much impact on sterling, Commerzbank says . The market has already lowered its bets on a rate hike for the next BOE meeting on March 17, with a smaller 25 basis point increase expected, Commerzbank currency analyst You-Na Park said. Heger, in a footnote. “The pound could hold the upper hand against the euro as doubts over the European Central Bank’s interest rate hike this year appear to be mounting in the market,” she said. EUR/GBP fell 0.1% to 0.8277 after hitting a five-year low of 0.8260 earlier, according to FactSet, but GBP/USD fell 0.3% to 1.3313. ([email protected])

BOE rate hike bets on sterling from Russian-Ukrainian conflict

1000 GMT – The pound is showing better resilience in the war against Ukraine compared to other European currencies, with the Bank of England expected to raise interest rates further this year, according to ING. “The market continues to price in five 25 basis point rate hikes by the Bank of England in 2022, which has prevented the type of repricing seen in euro markets,” ING analysts say. “A decisive break below 1.1000 on EUR/USD could favor a further decline in EUR/GBP, which could explore the 0.8200-0.8250 zone in the coming days.” EUR/GBP fell 0.1% to 0.8281 after hitting a five-year low of 0.8260 earlier. EUR/USD fell 0.4% to 1.1021 after hitting a 21-month low of 1.1008, according to FactSet. ([email protected])

Investors are buying UK 10-year Gilts again

0948 GMT – The price of 10-year UK government bonds rose in early trading, pushing yields lower, according to Tradeweb data. Yet yields remain significantly lower than before the start of Russia’s invasion of Ukraine on February 24. analysts say. The 10-year gilt yield is last trading at 1.250%, down from Thursday’s close at 1.317%. It was trading at 1.469% the day before the launch of the Russian military assault. ([email protected])

Boohoo’s growth slows in the 4th quarter in a still difficult market

0921 GMT – Boohoo Group’s revenue growth is expected to slow in the fourth quarter of fiscal 2022 amid challenging market conditions, Jefferies said. Traffic, app and search data from the London-listed online fashion retailer suggests it has seen a slight decline since the third quarter, Jefferies said. “We would consider this consistent with our estimates that revenue growth will slow from the 10% recorded in the third quarter to around 5% in the fourth quarter,” the US bank said. However, Jefferies also says that the pressures Boohoo faces are almost entirely transitory in nature, rather than structural. Jefferies has a buy recommendation on the stock and a target price of 165.00 pence. The shares are down 3.7% at 71.54 pence. ([email protected]; @sabelaojeaguix)

Hammerson’s financial performance in 2021 looks below expectations

09:20 GMT – Hammerson’s financial results for 2021 appear to be slightly below expectations, although they are harder to judge against a consensus that looks somewhat outdated, according to RBC Capital Markets. The real estate group’s operating performance appears to continue to strengthen and is a key part of management’s outlook, RBC said. The loan-to-value ratio has fallen, reducing risk, but it remains relatively high, the bank adds. Shares tumble 0.9% after the earnings release. “We believe Hammerson’s transition to mixed-use ownership will likely be slow and painful at first,” RBC warns. ([email protected])

 

Contact: London NewsPlus, Dow Jones Newswires; Dow Jones Newswire; [email protected]

(END) Dow Jones Newswire

March 04, 2022 06:46 ET (11:46 GMT)

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