Persimmon’s Cautious Update Drowns Other Homebuilders

Persimmon’s Cautious Update Drowns Other Homebuilders

08.50 GMT – Persimmon’s cautious business update pushed a number of key UK homebuilders to the bottom of the FTSE 100 in early trading, after warning it expects few completions in 2023, said Interactive Investor. Persimmon has lost more than 55% of its market valuation since the start of the year, underperforming the FTSE 100 and its rivals as it grapples with cost inflation and macroeconomic pressures, says Victoria Scholar , chief investment officer at Interactive Investor, in a market commentary. “It languishes at the bottom of the UK index today, dragging other homebuilder stocks with it,” Scholar said. Persimmon shares are down 7.8% at 1,220.5p, Barratt Developments are down 2.4% at 376.4p while Taylor Wimpey is down 3.3% at 93.34 pence. ([email protected])

Companies News: 

Persimmon sales plummeted; Backs 2022 View but sees 2023 sales slip

Persimmon PLC said on Tuesday that sales in the first four months of the second half of the year fell in the face of strong comparative and macroeconomic headwinds, and while it sees sights on the 2022 meeting, it s expect 2023 sales to fall.

ALD’s acquisition of LeasePlan obtains clearance from UK competition authorities

The British competition regulator announced on Tuesday that it had cleared the acquisition of LeasePlan Corp. by ALD SA, the vehicle rental activity of Société Générale SA.

Aveva’s first-half pretax loss widened on amortization related to Schneider deal

Aveva Group PLC said on Tuesday its first-half pretax loss widened due to amortization of intangible assets related to combinations with the industrial software business of Schneider Electric and OSIsoft.

WPP CFO John Rogers resigns; Britvic’s Joanne Wilson named successor

WPP PLC said on Tuesday that chief financial officer John Rogers had decided to step down from the company and named Joanne Wilson, chief financial officer of soft drink company Britvic PLC, as his successor.

AB Foods’ pre-tax profit for fiscal 2022 increased on strong pricing; Launches £500m share buyback

Associated British Foods PLC said on Tuesday that pre-tax profit for the financial year 2022 rose on the back of robust pricing amid normalizing customer behavior, and increased its dividend payout and launched a buyback program.

IMI 3Q organic revenue up; EPS 2022 Guidelines Upgrades

IMI PLC said on Tuesday that organic revenue growth in the third quarter was 4% and that it was revising its earnings per share forecast for the full year upwards.

Irish government sells 134 million shares of AIB Group at EUR 2.96

JP Morgan Securities PLC said on Tuesday it had sold 134 million ordinary shares of AIB Group PLC on behalf of the Irish government at 2.96 euros per share ($2.97), as first announced on Monday evening.

Hilton Food’s SeaFood 2022 business earnings fall short of expectations

Hilton Food Group PLC said volumes and revenue were in line with the board’s expectations, although it expects lower operating profit from its UK seafood business for the first year in a context of macroeconomic pressures.

Hammerson 3Q rental income, sales up; sees 2022 adjusted earnings increase

Hammerson PLC said on Tuesday that its rental income and sales in the third quarter had increased thanks to the continued post-pandemic recovery, and it expects adjusted profit to increase for the full year.

Seraphine sees an hour loss in tough UK conditions

Seraphine Group PLC said on Tuesday it expected to post a first-half loss after experiencing a difficult retail environment and weaker trading during the summer months.

IMI PLC to buy UK maker of smart thermostatic controls for up to £118m

IMI PLC announced on Tuesday that it is buying British smart thermostatic controls maker Heatmiser UK Ltd. for up to £118 million ($135.9 million), as part of its plan to accelerate the growth of smart buildings.

Marks Electrical 1H Pretax Profit Flat; Supports exercise orientation

Marks Electrical Group PLC said on Tuesday that pre-tax profit for its fiscal first half was stable year on year in a difficult business environment and was well positioned to meet its full-year targets.

Direct line insurance Q3 new business sales drop

Direct Line Insurance Group PLC said on Tuesday that new business sales in the third quarter fell due to price increases to restore margins in the automotive division.

CVS Group plans to double Ebitda and increase revenue over five years

CVS Group PLC said on Tuesday that it expects to double its Ebitda over the next five years and significantly increase revenue growth.

ZOO Digital Reports First-Half Pretax Earnings on Localization Growth and Media Services Expansion

ZOO Digital Group PLC said on Tuesday it recorded its first-ever pre-tax profit for the first half of fiscal 2023 and backed its full-year guidance.

Chesterfield Resources abandons some Cypriot licenses to focus on the most promising

Chesterfield Resources PLC said on Tuesday it would let go of a number of licenses in Cyprus as they expire over the next six months, allowing it to focus on the most promising licenses.

Market Talk: 

AB Foods seems able to weather the economic storms

08:43 GMT – AB Foods posted a resilient performance in fiscal 2022, with robust growth despite a challenging environment, and Primark getting back on its feet, Interactive Investor’s head of markets, Richard Hunter, said in a statement. research note. The strong results of the British conglomerate are based on the diversification and scope of its activities, which offer protection during periods of economic uncertainty, notes Hunter. “Unfortunately, September’s earnings warning on the outlook for next year is still ringing in investors’ ears. An outlook that incorporates further cost inflation, some continued supply chain pressures and, in particular , an increasingly cash-strapped consumer, should weigh on the numbers ahead,” adds Hunter ([email protected])

AB Foods buyback program viewed positively given cheap price

08:35 GMT – Associated British Foods has reported mixed results for the 2022 financial year, but the announcement of a share buyback program should be welcomed by investors, according to RBC analysts Richard Chamberlain and Manjari Dhar in a report research note. Shares rise 3.5%. The British conglomerate’s share price is quite depressed and should be supported by the £500m buyout program and its strong balance sheet, analysts add. AB Foods is also expected to experience a robust recovery in sales, driven by continued positive recovery trends for in-store retail, they say. However, margins are likely to be affected by currency and other inflationary pressures, RBC notes. ([email protected])

Persimmon’s soft update means late 2023 estimates are likely to fall

08:20 GMT – Persimmon released a somewhat soft trading performance update, with weekly sell rates falling broadly in line with expectations and cancellation rates rising from 21% to 28%, according to Citi. The homebuilder has a wide range of consensus expectations in the market, but Citi thinks the low end of the range should fall by around 3% to 4% due to the weaker outlook on outlet growth and sales. average selling prices, analyst Ami Galla said in a research note. “The focus will be on the scale of ordinary dividend payouts, increased building security provisions and underlying property price pressures,” the US bank said. Citi retains its neutral rating and target price of 1,207 pence on the share. The shares are down 8.7% at 1,208.0 pence. ([email protected])

Aveva’s low 1H largely academic due to Schneider’s offer

08:18 GMT – Aveva Group has released weak first-half results as expected after its pre-announcement, although this is largely academic due to the ongoing supply situation with Schneider Electric, say Jefferies analysts Charles Brennan and Alex Nguyen in a research note. The British engineering and industrial software company is moving to a subscription model, which deflates license growth in favor of annualized recurring revenue, they say. However, licensing was down 35%, with ARR growth of 11.6%, and management initially saw ARR growth accelerating, with licensing broadly flat, analysts note. Jefferies has a holding rating on the stock with a target price of 3,250.00 pence. The shares are trading down 0.1% at 3,134.00 pence. ([email protected])


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(END) Dow Jones Newswire

November 08, 2022 04:06 ET (09:06 GMT)

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