FTSE 100 Steady; Tesco Rises After Results Update

FTSE 100 Steady in Early Trade; Tesco Rises After Update

0849 GMT - The FTSE 100 is steady at 7822.50 in early trade, as gains for property companies and supermarket giant Tesco offset falls for Imperial Brands, as well as miners and oil companies. Tesco rises 1.9% after reporting in-line results for fiscal 2023 and better-than-expected guidance for the year ahead. Persimmon rises 3.4%, while real-estate peers Barratt Developments and Taylor Wimpey rise 2.7%. Imperial Brands loses 1.6% after warning of a "challenging" outlook, Interactive Investor Victoria Scholar writes. Meanwhile, mining and oil stocks fall, with Rio Tinto down 0.7% and BP losing 0.6%. ([e-mail])

 
Companies News: 

PZ Cussons 3Q Comparative Revenue Rose; Expects FY 2023 Adjusted Pretax Profit in Line With Views

PZ Cussons PLC said Thursday that like-for-like revenue in the third quarter of fiscal 2023 rose 6.2%, and that it expects adjusted pretax profit for the year to be at least in line with market expectations.

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Darktrace 3Q Revenue Rose; Sees FY23 Revenue Growth at Top End of Expectations

Darktrace PLC on Thursday reported robust growth in annual recurring revenue and improved third-quarter revenue, and centered full-year revenue growth at the top end of its guidance range for the full year,

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Tesco FY 2023 Pretax Profit Halved, Plans GBP750 Mln Buyback

Tesco PLC on Thursday said its pretax profit halved in fiscal 2023 and that it would buy back 750 million pounds ($936.4 million) of shares over the next 12 months

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Imperial Brands Sees 1H Profit Around Flat on Year; On Track to Meet Full-Year Guidance

Imperial Brands PLC said Thursday that it is on track to meet full-year guidance and that first-half adjusted group operating profit should be similar on year on a constant-currency basis.

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VP PLC Sees Full Year in Line After Progress in Core Markets

VP PLC said Thursday that it expects its full-year results to be in line with the board's expectations after good progress in its core markets of infrastructure, construction, house building and energy.

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Norcros Expects to Report Rise in FY 2023 Revenue, Operating Profit

Norcros PLC said Thursday that it expects to report that fiscal 2023 revenue rose and that operating profit met market expectations.

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Science in Sport to Focus on Growing Business; No Longer in Offer Period

Science in Sport PLC said Thursday that it is no longer in a formal offer period following its review of the business that has highlighted a focus on accelerating its growth.

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Distil FY 2023 Pretax Loss Widened; Revenue Below Market Views

Distil PLC said Thursday that its unaudited pretax loss for fiscal 2023 widened and that unaudited revenue was slightly below market expectations.

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Workspace 4Q Occupancy Was Stable; Rent Roll Increased on Demand

Workspace Group PLC said Thursday that like-for-like occupancy was stable in the fourth quarter of fiscal 2023, and its total rent roll increased on strong customer demand.

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Brooks Macdonald Group 3Q Funds Under Management Rose

Brooks Macdonald Group PLC said Thursday that its funds under management rose 3.5% in the third quarter of fiscal 2023 and that its underlying performance is in line with guidance.

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Churchill China 2022 Pretax Profit, Revenue Rose on Higher Volumes, Pricing

Churchill China PLC said Thursday that its pretax profit rose 61% in 2022, and that 2023 has started well with first-quarter targets met.

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Home REIT Gets Extension to Bluestar Bid Deadline

Home REIT PLC said Thursday that the U.K. Takeover Panel has extended the deadline until May 11 for Bluestar Group Ltd. to either make an offer for the company or walk away.

 
Market Talk: 

Tesco's FY 2023 Results Show Success at Keeping Competition at Bay

0845 GMT - Tesco has successfully flexed its financial muscle, Interactive Investor's head of markets Richard Hunter says in a market comment after the British grocer posted fiscal 2023 results. Its adjusted operating profit for the year, which fell 7% on year but slightly exceeded consensus expectations, reflects the company's choices which allowed it to keep its 27% market share and stay ahead of the competition, Hunter says. "While the company remains the one to beat in terms of size in the U.K., growth is also increasingly hard to come by given the higher base," the analyst notes on Tesco's flat retail profit outlook. Shares are up 2.1% at 273.1 pence. ([e-mail])

Tesco's Results Show Extent of Cost Absorption

0842 GMT - Tesco's modest revenue rise as consumers paid more for everyday products was lower than inflation but explains the 40% fall in operating profits, says CMC Markets UK analyst Michael Hewson in a market comment after the U.K. grocer's revenue for fiscal 2023 came in 7.2% higher than the previous year at GBP65.76 billion. "This mismatch serves to offer an insight into how much of the rise in food costs are being absorbed by Tesco along with its suppliers," Hewson says, pointing to the current inflation rate of 10.4% and food-price inflation level of 17%. Shares rise 2.0% at 272.8 pence, and are up 22% year-to-date. ([e-mail])

New UK Housing Market Data Dashes Hopes for Surprise Recovery

0839 GMT - U.K. housing market conditions remain weak with prices still falling and new buyer enquiries dropping off, painting a bleak outlook for the sector, Davy Research says, citing a new Royal Institution of Chartered Surveyors survey. The survey showed a headline price balance of negative 43% for March, a slight improvement but still firmly negative, though there were tentative signs of stabilization with balanced 12-month sales expectations, Davy analyst Conall Mac Coille says in a market comment. This has poured cold water on short-lived hopes for a rebound in demand and market activity, spurred by the surprise rise in the Halifax house price index published last week--which is at odds with both Thursday's RICS release and the alternative Nationwide measure published late March, the Irish research firm says. ([e-mail])

Serica's Net Cash Level May Offset Tailwind-Deal Debt

0827 GMT - Serica booked 2022 results that were in line, but clarity on its net cash level is needed, Jefferies analysts Mark Wilson and Ruben Dewa write in a research note. It was encouraging to see net profit and net cash in line with expectations, and the pro forma 2023 production guidance unchanged, the analysts say. However, "we look for clarity on the call to support our view that the net cash level can maintain, and even grow this year, effectively offsetting debt taken on in the Tailwind deal," they say. Jefferies has a buy rating on the stock. Shares are up 1.8% at 245.40 pence. ([e-mail])

Tesco's 'Conservative' Guidance Likely to Be Debated

0823 GMT - Tesco's profits for fiscal 2023 came in slightly ahead of views and will likely drive modest upgrades while the free cash flow beat is very robust, UBS analysts say in a note after the British grocer posted full-year results and issued guidance for fiscal 2024. "A question that both retail EBIT and [free cash flow] guidance for the year ahead being conservative will likely be debated today," say Sreedhar Mahamkali and Hai Huynh. Given shares are up by around a fifth since the start of the year, there may be a little profit taking, they say, adding that the stock is seen as well supported. UBS rates the stock buy. Shares are up 1.8% at 272.2 pence. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

04-13-23 0622ET