FTSE 100 Rises as Utilities Gain; RS Group Falls

FTSE 100 Rises as Utilities Gain; RS Group Falls

0815 GMT - The FTSE 100 Index gains 0.3%, or 19 points to 7653 as gains for utility and drug stocks offset losses for RS Group and industrial shares. United Utilities, Centrica, Severn Trent and National Grid are among the biggest risers while Haleon, AstraZeneca, GSK and Reckitt Benckiser also advance. RS Group tops the fallers, down 5% after the electronics distributor reported slower fourth-quarter revenue momentum, though it forecast full-year adjusted operating profit slightly ahead of consensus expectations. Weir Group, Halma, Smiths, Melrose Industries and Spirax-Sarco Engineering are also among the biggest fallers. (philip.waller@wsj.com)

COMPANIES NEWS:

Entain Buys 365scores for Up to $160 Mln to Add Data-Driven Sports Media Expertise

Entain PLC said Wednesday that it has bought sports-media business 365scores for $150 million, with contingent payments of up to $10 million.

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Topps Tiles 1H Revenue Rose to Record Highs on Robust Sales

Topps Tiles PLC said Wednesday that revenue for the first half of fiscal 2023 rose to a record high on the back of improved sales, benefiting from the acquisition of Pro Tiler Tools and the launch of Tile Warehouse in 2022.

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RS Group 4Q Revenue Slowed But FY 2023 Adjusted Operating Profit Beat Views

RS Group PLC said Wednesday that revenue momentum for the fourth quarter of fiscal 2023 slowed, but that adjusted operating profit for the year was slightly ahead of consensus expectations.

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Futura Medical 2022 Loss Widens But Expects Maiden Revenue Soon

Futura Medical PLC said Wednesday that its 2022 loss widened though it made significant strategic and commercial progress over the year and into 2023 and expects to report maiden revenue soon.

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Lookers 2022 Pretax Profit Fell Against Strong Comparative, Revenue Rose on Higher Selling Prices

Lookers PLC said Wednesday that pretax profit fell in 2022 against a strong comparable year, as revenue rose thanks to growth in most divisions.

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Distribution Finance Sees 2022 Expectations Beat on Net Interest Income, Cost Management

Distribution Finance Capital Holdings PLC said Wednesday that it expects to report 2022 results materially ahead of expectations, mainly thanks to increased net interest income and cost management.

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Home REIT Gets Proposals for New Advisor; Reduces Lender Debt

Home REIT PLC said Wednesday that it has received proposals from six candidates to act as its investment adviser, reduced debt with a lender and received an initial draft of an investigation report.

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Fulham Shore Agrees to GBP93.4 Mln Takeover by Japan's Toridoll Holdings

Fulham Shore PLC said Wednesday that it has agreed to a 93.4 million pound ($116.8 million) takeover by Great Sea Kitchens Ltd., a new company formed by Japan's Toridoll Holdings Corp.

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Speedy Hire Sees FY 2023 Profit in Line With Views; Warns of Worsening Backdrop

Speedy Hire PLC said Wednesday that it expects adjusted profit before tax for fiscal 2023 in line with the board's expectations, but flagged softening demand in recent weeks.

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Northern Bear Shares Jump on Dividends, FY 2023 Adjusted Operating Profit Seen Exceeding GBP2.75M

Shares in Northern Bear PLC jumped 24% on Wednesday after it said that it plans to declare an ordinary dividend of 4 pence a share and a special dividend of 1 pence a share for fiscal 2023 and that adjusted operating profit should exceed 2.75 million pounds ($3.4 million).

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Fulham Shore to Report FY 2023 Revenue Rise on Pandemic Recovery, New Restaurant Openings

Fulham Shore PLC said Wednesday that it expects to report a rise in revenue for the year ended March 26 as its performance benefited from new restaurant openings and the end of pandemic-related closures.

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Shield Therapeutics Appoints Andy Hurley as Chief Commercial Officer

Shield Therapeutics PLC said Wednesday that it has appointed Andy Hurley as chief commercial officer from April 10.

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Co-Operative Group 2022 Pretax Profit Rose on Petrol Business Sale

Co-operative Group Ltd. said Wednesday that pretax profit for 2022 rose on the back of selling its petrol forecourt business.

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EnQuest 2022 Earnings, Revenue Rise on Higher Production, Prices

EnQuest PLC said Wednesday that earnings and revenue rose in 2022 as it booked higher production and amid higher oil prices.

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Drumz Shares Fall on Discount Fund Raise; Investee Reverse Takeover

Drumz PLC shares fell Wednesday after it agreed to buy investee Acuity Risk Management Ltd. in a 3.6 million pound ($4.5 million) reverse takeover, hold a discounted fund raising and share reorganization as well as change its name.

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Genuit COO to Step Down, No Replacement Planned

Genuit Group PLC said Wednesday that Chief Operating Officer Matt Pullen will step down on April 28, as Martin Gisbourne assumes the duties of chief strategy and sustainability officer.

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Hilton Food 2022 Pretax Profit Fell on Higher Costs, Appoints New CEO as Philip Heffer Steps Down

Hilton Food Group PLC said Wednesday that pretax profit for 2022 fell on the back of increased expenses, and that it has appointed a new chief executive officer.

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ZOO Digital Buys out ZOO Korea for Around $1.6 Mln in Cash and Stock Deal

ZOO Digital Group PLC said Wednesday that it has acquired the remaining 49% of shares in ZOO Korea in a cash and share deal worth around $1.6 million, following the Korean hub's strong first year performance.

MARKET TALK:

Fulham Shore's Takeover Offer, Trading Update Prompt Downgrade

0822 GMT - Fulham Shore agreed to a GBP93.4 million takeover by Great Sea Kitchens Ltd.--a new company formed by Japan's Toridoll Holdings Corp.--whose terms independent directors consider to be fair and reasonable, Shore Capital analysts Bradley Hughes and Greg Johnson say in a note. Furthermore, the restaurants operator's trading update indicated it was performing in line with analysts' forecasts, with a net cash position slightly better than what analysts expected at GBP700,000, versus net debt expectations of GBP3 million, analysts say. "Given trading looks to be in-line... and the offer comes within 2.5% of our fair value, we are changing our recommendation to hold [from buy] and believe 14.15 pence offers shareholders fair value for their shares," the analysts say. (anthony.orunagoriainoff@dowjones.com)

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Distribution Finance Looks Attractive as Momentum Continues

0811 GMT - Distribution Finance Capital is an appealing stock as its strong 2022 momentum has carried into 1Q, Liberum analysts James Allen and Nick Anderson write in a research note. "We believe the shares are attractive given strong momentum, reduced competition from traditional lenders and the potential for a mid-to-high teens return on equity once scale has been achieved," the analysts say. The U.K. lender has seen its loan book increase by 15% since 2022 year-end. Liberum lifts it target price to 76 pence from 75 pence and keeps a buy rating on the stock. Shares are up 4.1% at 38.50 pence. (christian.moess@wsj.com)

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Hilton Food's 2022 Performance Seen as Mixed

0758 GMT - Hilton Food's 2022 results were a mixed bag as it delivered a significant miss in revenue growth while profit beat expectations, RBC Capital Markets analysts Emma Letheren and James Jones say in a note. Although the food-packing business' results were reassuring given the disruption reported over the last year, regional performance was mixed given Europe's operating profit being 5% below market consensus expectations and APAC beating estimates, they say. "After a very acquisitive year, deterioration in margins and the ongoing turnaround of U.K. Seafood we think Hilton Foods has enough to be getting on with without additional mergers and acquisitions," they say. RBC has a neutral rating on the stock and a target price of 600 pence. (michael.susin@wsj.com)

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Crimson Tide Delivers on Healthcare Opportunity With NHS Contract Win

0752 GMT - Crimson Tide's contract win shows it can deliver when opportunity arises and is a flagship example to other NHS trusts, finnCap analyst Lorne Daniel writes in a research note. The 36-month term, GBP250,000 contract is expected to increase in size and revenue later in the year, as the U.K. mobile-business company adds its Internet of Things module to the project. This is a catalyst for growth, and provides a flagship example of operational effectiveness to other NHS trusts, Daniel says. The contract win also shows that while the company continues to be busy across verticals and geographies, particularly with expansion into the U.S., it can deliver on the significant and tangible healthcare opportunity, he says. Shares are up 11.8% at 2.85 pence. (christian.moess@wsj.com)

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RS Group's Short-Term Risk-Reward Seen as More Balanced

0750 GMT - RS Group's competitive advantage in a large, fragmented market has been further strengthened by the coronavirus pandemic thanks to the company's digital and web capability, stock availability and multichannel service proposition, RBC Capital Markets analyst Andrew Brooke says in a note. However, although the industrial and electronics products distributor is expected to continue to take market share and control the controllables, there is uncertainty as to how cyclical this business really is as there is limited visibility and there has been management change, Brooke says. "We continue to be fans for the longer-term, but see risk-reward as more balanced in the short-term," he says. RBC has a 1,000-pence target price on the stock. Shares are down 2.9% at 869 pence. (anthony.orunagoriainoff@dowjones.com)

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RS Group's Consensus Expected to Be Largely Unchanged

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April 05, 2023 04:39 ET (08:39 GMT)

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