Engineering & Capital Goods News

FTSE 100 Falls as Industrial Stocks, Burberry Drop


FTSE 100 Falls as Industrial Stocks, Burberry Drop

0949 GMT – The FTSE 100 drops 0.5%, or 39 points to 7312 as losses for industrial stocks and Burberry weigh on the blue-chip index. Halma shares fall 4% after the safety-equipment supplier reported lower first-half pretax profit. Spirax-Sarco Engineering also retreats 4% after the steam-system engineer said the macroeconomic outlook had continued to weaken and it was facing inflationary pressures, though underlying demand remained strong in the last four months. Elsewhere, Burberry edges 0.2% lower after the luxury-goods retailer said it was mindful of tough economic conditions and their potential impact on trading, though it stuck to its short-term guidance. (philip.waller@wsj.com)

 
Companies News: 

Halma 1H Pretax Profit Fell After Disposal Gain in Prior Year

Halma PLC said Thursday that pretax profit for the first half of fiscal 2023 fell after the comparable period a year earlier was boosted by a gain on a disposal.

International Distribution Services Swung to 1H Pretax Loss on Royal Mail Losses

International Distribution Services PLC said Thursday that it swung to a first-half pretax loss and revenue fell as a good performance from its GLS division was offset by Royal Mail losses.

Burberry Group 1H Pretax Profit Rose on Lower Costs; Backs FY 2024 Views

Burberry Group PLC said Thursday that it expects to achieve near-term guidance despite the challenging environment and that pretax profit for the first half of fiscal 2023 rose amid lower costs.

Spirax-Sarco Engineering Backs 2022 Guidance After Underlying Demand Growth

Spirax-Sarco Engineering PLC on Thursday backed its full-year guidance for adjusted operating profit as underlying demand growth remained strong in the four months to the end of October despite a weakening global industrial production growth forecast.

Investec 1H Pretax Profit Rose on Higher Interest Rates, Starts GBP350M Buyback

Investec PLC on Thursday reported an increased pretax profit for the first half of fiscal 2023, supported partly by rising global interest rates, and declared a 350 million-pound ($417 million) share buyback program.

Intermediate Capital Appoints William Rucker Chair; 1H Pretax Profit Fell

Intermediate Capital Group PLC said Thursday William Rucker has been appointed nonexecutive director and chair, and it reported a fall in pretax profit for the first half of fiscal 2023 as revenue decreased.

Finsbury Food Four-Month Sales Up 16%, Boosted by Higher Volumes, Prices

Finsbury Food Group PLC said Thursday that sales for the first four months of the new fiscal year have risen 16%, boosted by higher volumes and prices, but it expects macro-economic and cost inflation headwinds to continue throughout the year.

International Distribution Services Swung to 1H Pretax Loss on Royal Mail Losses — Update

International Distribution Services PLC said Thursday that it swung to a first-half pretax loss and revenue fell as a good performance from its GLS division was offset by Royal Mail losses.

Close Brothers Says 1Q Performance Was Robust Despite Market Uncertainties

Close Brothers Group PLC said Thursday that its first-quarter performance has been solid, with a robust margin in the banking division and increased net inflows in asset management despite market uncertainty.

Mitie Group 1H Pretax Profit Fell; Raises Interim Dividend

Mitie Group PLC said Thursday that pretax profit for the first half of fiscal 2023 fell after it booked fewer coronavirus-related contracts, and declared an increased interim dividend.

Crest Nicholson Sees FY 2022 Profit Meeting Guidance; Recent Sales Slowing

Crest Nicholson Holdings PLC said Thursday that it expects adjusted pretax profit for fiscal year 2022 to meet previous guidance of 135 million to 140 million pounds ($160.9 million-$166.8 million), though recent weeks have seen sales slow.

Begbies Traynor Group Sees 1H Revenue, Profit Increase

Begbies Traynor Group PLC said Thursday that it expects to report a rise in revenue and adjusted pretax profit for the first half of fiscal 2023 and that it backed its full-year expectations.

Kier Group Says New Fiscal Year Started Well, In Line With Expectations

Kier Group PLC said Thursday that the new financial year has started well, and that it is performing in line with the board’s expectations.

Fuller Smith & Turner 1H Pretax Profit Rose Amid Recovery From Pandemic Restrictions

Fuller Smith & Turner PLC said Thursday that pretax profit and revenue for the first half of fiscal 2023 rose on a recovery from the effect of coronavirus-related restrictions.

 
Market Talk: 

Energean Highlights Continued Progress

1005 GMT – Energean has confirmed the flagship Karish gas field continues to ramp up toward initial capacity, a major achievement for the company, Peel Hunt says. The oil-and-gas company also successfully grew its drilling program, while Karish North is on-track to reach first gas by the end of 2023, Peel Hunt analysts say in a research note. “In our view, this is a crucial part of Energean’s future investment case, as it will provide another source of material reserves, net asset value and production growth,” the U.K. brokerage says. Peel Hunt reiterates its buy rating 2,000 pence price target on Energean’s stock. Shares are down 2.8% at 1,442.0 pence. (joseph.hoppe@wsj.com)

Spirax-Sarco Valuations Look Tough to Sustain

1003 GMT – Spirax-Sarco Engineering drops 4% after the steam-system engineer said the economic outlook had continued to weaken and it was facing inflationary pressure, though underlying demand was still strong. The company, which reported half-year results in August, maintained its operating profit outlook, with higher sales offsetting lower margins, RBC Capital Markets says. Overall, the trading update matched expectations and supports consensus operating-profit forecasts, but top-line and margin issues will likely raise a few questions, RBC says. “Spirax is a high-quality business, but its absolute and relative valuations appear challenging,” RBC analyst Mark Fielding says in a note, reiterating RBC’s under-perform rating. (philip.waller@wsj.com)

Burberry’s High-End Positioning Is Showing Results

0942 GMT – Burberry’s positioning at the high end of the market after stepping away from in-store discounts and non-luxury partners is already bearing fruit, Interactive Investor’s Richard Hunter says in a note. The positioning with higher-income clients makes the British luxury-goods company’s sales less susceptible to inflationary and even recessionary environments, the investment platform’s head of markets says. Burberry also continues to drive innovation in the sector, as it targets to double sales and revenues at its leather goods and e-commerce businesses, Hunter says. The group’s shares have benefited from easing coronavirus-related restrictions in China, foreign exchange tailwind and supporting read from luxury-related peers such as Richemont, Hunter says. (michael.susin@wsj.com)

Intermediate Capital’s Recent Share Rally Seen Persisting on Rate Expectations Moderation

0937 GMT – Although Intermediate Capital Group’s share price has significantly underperformed the FTSE 100 All Share over the past year, down 42% on a relative basis, it has recovered partially over the past month, Shore Capital analyst Vivek Raja says in a note. For the asset manager this shows a meaningful degree of inverse correlation with interest-rate expectations, Raja says. “The recent rally in ICG shares follows recent moderation in rate expectations and we expect this linkage to persist,” Raja says. Shore has a hold rating on the stock and a 1,187-pence target price. (anthony.orunagoriainoff@dowjones.com)

Contact: London NewsPlus, Dow Jones Newswires; Dow Jones Newswires; paul.larkins@wsj.com

(END) Dow Jones Newswires

11-17-22 0522ET



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