FTSE down, government loans to energy suppliers seen as likely

UK government loans to energy suppliers considered likely

Some form of government loans to gas and electricity providers to cushion the effect of high energy prices on consumers has always been the most likely outcome of any intervention, RBC Capital Markets said after reports according to which the UK government was considering such payments to these companies. “With Boris Johnson’s government trailing in the polls, a populist move to reduce the cost of living for the electorate is likely, in our view,” RBC analysts say.

 
Companies News: 

Anexo Group sees revenue growth in 2021 and pre-tax profit ahead of expectations

Anexo Group PLC said on Tuesday it expects to report 2021 revenue growth above the group’s forecast and pre-tax profit significantly above market expectations.

Just Group expects 2021 capital generation to more than double

Just Group PLC said on Tuesday that capital generation for 2021 is expected to more than double from the previous year and exceed board expectations a year earlier than expected.

PRS REIT home completions, rental value up in Q2; declare a dividend

PRS REIT PLC said on Tuesday that its completed homes and rental value increased in the second quarter of fiscal 2022, and declared an interim dividend.

Cyba shares rise after potential acquisition NFT price surge

Shares of Cyba PLC rose on Tuesday after seeing the extreme price increase of the non-fungible token Nectar from its potential acquisition PolySwarm.

Ashtead Technology Holdings Sees 30% Revenue Growth for 2021

Ashtead Technology Holdings PLC said on Tuesday it expects to record a 30% increase in revenue for 2021 and expects further progress through 2022.

Crossword Cybersecurity sees 43% revenue growth in 2021 and 75% revenue growth in 2022

Crossword Cybersecurity PLC said on Tuesday it expects revenue growth of 43% for 2021 after strong core performance in cybersecurity consulting and products, and revenue growth of 75% for 2022.

Ascent Resources raises £0.6m via share issue

Ascent Resources PLC announced on Tuesday that it had raised 0.6 million pounds ($818,760) through a share issue.

Alfa Financial Software Holdings plans up to £18m buyout program

Alfa Financial Software Holdings PLC said on Tuesday it is planning a share buyback program of up to 18 million pounds ($24.6 million) as future cash projections show continued generation of more cash than needed to its growth plans.

Kape Technologies CFO steps down

Kape Technologies PLC said on Tuesday that chief financial officer Moran Laufer was stepping down to pursue other interests.

Alliance Pharma expects to beat 2021 Adj Pretax Pft views, boosted by Kelo-Cote results

Alliance Pharma PLC said on Tuesday it expects 2021 adjusted pre-tax profit to beat market expectations, boosted by an outperformance of its Kelo-Cote product.

Distribution Finance Loan Book Rose in December; Sees reduced losses in 2021

Distribution Finance Capital Holdings PLC said on Tuesday its loan portfolio grew by a record amount in December and it now saw its full-year pre-tax loss lower than expected.

 
Market Talk: 

Crackdown on UK Cryptocurrency Ads Appears to Have Limited Impact

1412 GMT – UK government plans to join Spain and Singapore in cracking down on cryptocurrency advertising may have limited impact in preventing consumers from being misled, AJ Bell says. “While this decision will help some people, it won’t stop the outright scams that have exploded due to bitcoin and other cryptos skyrocketing in price,” said AJ Bell’s Laura Suter. Crackdowns on social media accounts where people claim to have made millions buying bitcoin would have a bigger impact, she says. An overwhelming number of people hear about cryptocurrencies through social media while very few are encouraged to buy them from an advertisement, she says. Bitcoin fell 3.9% to a one-week low of $41,330, according to FactSet.

Watkin Jones Pipeline Offers “Excellent” Revenue Visibility Over the Next Years

1400 GMT – Watkin Jones’ fiscal 2021 results were ahead of forecasts and it has again increased its pipeline, according to Davy Research. The UK property developer’s pipeline units in the ‘build to let’ and ‘special purpose student accommodation’ segments have an estimated future revenue value of £1.85 billion, hitting a record high and above 1, £75bn in November, Davy said. The company has added an approximately 800-bed PBSA site since November to its pipeline. Watkin Jones’ pipeline now has 4,012 BtR units and 7,806 PBSA beds, giving the company excellent revenue visibility over the next few years, according to the Irish research firm. Davy has an outperforming rating on the stock and a closing price of 265 pence.

Blancco technology benefits from ESG customer focus

13:02 GMT – The increased divestiture of IT assets from Blancco Technology Group is the biggest surprise in the data erasure and mobile device diagnostics company’s first-half results, Peel Hunt said. Blancco’s strong ITAD performance comes from companies looking for sustainable use of IT assets, and enterprise and mobile operations are also poised for a positive future, it says. “We believe that as ITAD’s mid-term growth accelerates, businesses take full advantage of recent partnerships, and the mobile SMB segment cracks, there will be more upgrades in quarters and years to come, aided by the model’s large operational gearing,” says the UK brokerage. Peel Hunt has a buy rating with a target price of 335 pence. Blancco shares are trading up 5.6% at 235 pence. (

Carr’s Group looks robust after investment

12:43 GMT – Carr’s Group appears to have adapted well and remains in a strong operational and financial position following its previous and ongoing investment across the business, Shore Capital said. The London-listed agriculture and engineering group has a global and diversified business model and, comfortingly, the agricultural market should benefit from near-term structural tailwinds, Shore said. Carr’s is planning a strategic review of its divisions, and Shore says it will revisit the investment case in April if the company’s operations change dramatically. “We believe the current valuation remains fair, so we maintain our hold recommendation at this stage,” the investment group said. The shares are up 1.1% at 157.5 pence.

Experian remains a strategic game, says Shore

12:34 GMT – Experian remains a strategic asset with strong guidance for the foreseeable future, but its share price is currently weak, according to Shore Capital. According to Shore, the FTSE 100 credit reporting agency has the opportunity to grow due to increased demand for critical data services in the global economy. The UK investment group expects FY2022 EPS to rise from 125.0 pence to 125.6 pence and retains a buy rating. The shares are down 1.7% at 3,043.0 pence.

Shares of Petra Diamonds rise after reporting improved debt position

11:56 GMT – Petra Diamonds is rapidly reducing net debt, showing the business is regaining health, says Peel Hunt. Shares of the diamond producer rose 6.4% after reporting net debt of $154 million as of Dec. 31, an improvement of $70 million since June 30, according to the brokerage. First-half revenues were also better than Peel Hunt’s estimate, with all four mines posting higher-than-expected production rates. Petra is a corporate client of Peel Hunt.

Rio Tinto 4Q update will result in small revenue drops

11:14 GMT – Rio Tinto’s fourth-quarter production report will lead to slight downward revisions to 2021 consensus earnings, but will have limited impact on the 2022 guidance, according to RBC Capital Markets. Overall, the company’s operations continue to meander and iron ore mining capacity issues are expected to weigh again in 2022, according to RBC. In addition, the outlook for iron ore prices remains challenging, according to the bank. “With broader strategic issues and unresolved situations in Mongolia, Serbia and Guinea, we continue to prefer other exposures, such as Glencore and Anglo American globally and BHP in Australia.

Energean 2021 update was live, 2022 outlook is missing RBC Views

11:12 GMT – Energean’s operational and financial figures for 2021 are in line with expectations, according to RBC Capital Markets. However, the outlook for 2022 includes lower production and higher cost estimates, according to the bank. Additionally, higher spending for 2022 and conservative production estimates are expected to put pressure on the oil and gas company’s valuation. Still, the shares rose 6.2% to 973 pence. RBC has an outperform rating on Energean with a target price of 1,050 pence.

 

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at [email protected]

(END) Dow Jones Newswire

January 18, 2022 09:35 ET (14:35 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

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