UK Gilt Yields Edge Lower After Eurozone Feb -2-

Angus Energy PLC shares rose on Thursday after the company said it has secured additional funding, and that it has appointed Richard Herbert as chief executive officer among other changes to the board.

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Aukett Swanke to Buy Torpedo Factory Group

Aukett Swanke Group PLC said Thursday it has agreed to buy Torpedo Factory Group Ltd., an integrator of technology systems, for 2.8 million pounds ($3.4 million) to be paid in stock.

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Capita Shares Rise on Return to Adjusted Profit, Higher Revenue -- Update

Shares of Capita PLC rose as much as 12% in early trade Thursday after the company reported a swing to adjusted pretax profit on higher revenue for last year, and said that it is well positioned for sustainable revenue growth.

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London Stock Exchange says Microsoft deal will 'transform' business as equities struggle -- Financial News

Computing giant will help usher in a new era, exchange says, as it turns its attention away from stalled IPO market to data and technology

MARKET TALK:

Esken's Strategic Review Carries Risks But Value Could Crystallize

1134 GMT - Esken cut profit guidance for its renewables division again due to further customer plant outages and weak market conditions, with 2023 Ebitda of GBP19 million down from previous guidance of GBP20 million, Liberum analyst Gerald Khoo says in a note. The energy and aviation infrastructure company's strategic review of its divisions continues with efforts to sell the GBP36 million of non-core assets, with a sale process for renewables underway and the nascent exploration of a sale of its aviation business, Khoo says. Still, although there are execution risks and its medium-term financial flexibility remains limited, analysts remain hopeful of value being crystallized. "We believe there is significant upside potential," Khoo says. Liberum rates the stock buy. ([e-mail])

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BOE Survey Gives Mixed Messages

1128 GMT - The Bank of England's latest Decision Maker Panel survey of chief financial officers adds to the mixed messages seen in recent survey data, Monex Europe says. "We think the BOE will be hesitant reading too much into it, instead they will await confirmation in February's hard data prior to May's meeting before pinning their colors to the mast," Monex forex analyst Simon Harvey says in emailed remarks. "The lack of market reaction also confirms as much." Monex expects the BOE to raise rates 25 basis points at the March 23 meeting but sees May's decision as data dependent. The BOE's survey, published Thursday, showed businesses' inflation expectations for the coming year eased but wage growth projections remained elevated. ([e-mail])

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ITV Drops After Ad Outlook Falls Short of Hopes

1058 GMT - ITV shares drop 3% to 86 pence after the U.K. broadcaster's advertising outlook left investors underwhelmed. While 2022 annual sales and profit were slightly ahead of forecasts, advertising guidance for the first four months of 2023 was below consensus forecasts, especially April, Numis Securities says. "Our initial take is that slightly worse ad outlook and costs are likely to offset slightly higher base FY22 figures," Numis analyst Steve Liechti says in a note. Numis reiterates its hold rating, citing short-term macro-economic concerns and more structural issues for traditional so-called linear TV in the longer term, though it increases its price target to 80p from 75p. ([e-mail])

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Flutter Entertainment's US Plans Taking Center Stage

1044 GMT - All eyes on Flutter Entertainment will be focussing on the tipping point to U.S. profit in 2023, Jefferies analysts say in a note after the company said the U.S. remains on track to be Ebitda positive for the full-year 2023. The FTSE 100 gambling and betting group now has a U.S. sportsbook market share of 50%, they say. The AGM to approve a secondary listing in the U.S. on April 27 should act as a catalyst, they say, adding that such a listing looks like a precursor to a primary listing. "Flutter is our Top Pick Gaming stock," they say. Jefferies has a buy rating on the stock with a 15,000 pence price target. ([e-mail])

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Cairn Homes Results Confirm Best-in-Sector Status, Goodbody Says

1033 GMT - Cairn Homes' strong 2022 results and further share buyback of EUR40 million highlight why it is Goodbody's top pick in the sector, the brokerage says. The Irish house builder's rivals in both Ireland and the U.K. have seen consensus expectations for 2023 earnings significantly downgraded over the last number of months, while Cairn Homes' consistent track record of delivery against its targets has seen its expectations remain largely unchanged, Goodbody analyst Shane Carberry says in a research note. "Neither that, nor the significant amount of amount of capital being returned to shareholders in coming years is adequately reflected on a stock trading, unjustly, on similar multiples to peers," the Irish brokerage says. Goodbody retains its buy recommendation. Shares are flat at EUR0.97. ([e-mail])

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CRH Investors Should React Well to US Primary Listing Move

1031 GMT - CRH's 2022 results were broadly in line with expectations, and the market will react positively to the share buyback and planned listing move, Citi says. The building materials retailer expects resilient demand and increased pricing in 2023 despite macroeconomic uncertainties and continuing cost inflation, with North America benefiting from strong pricing and infrastructure demand, and Europe profiting from positive pricing momentum to offset lower volumes, Citi analyst Ephrem Ravi says in a research note. "We think investors will like the U.S. listing transition and elevated share buyback and hence share price to react positively to today's announcement," the U.S. bank says. Citi retains its buy rating and EUR50.0 target price on the stock. Shares in London are up 10% at 4,357.0 pence. ([e-mail])

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CRH's Margin and Cashflow Stand Out, Along With Buyback

1030 GMT - CRH delivered an excellent performance in 2022, marked by Ebitda margin expansion, underpinned by the integrated solutions strategy, and further strong cash generation, Davy Research says. The building-materials company's continued structural improvements in margin and returns, alongside ever-disciplined capital allocation, have paved the way for a significant increase in the share buyback program to $3 billion over the next year, and there is merit and strategic rationale in pursuing a U.S. primary listing, Davy analyst Ross Harvey says in a research note. "Its ability to execute, combined with a strong pipeline of M&A and value-accretive capex opportunities, suggests a clear runway for further value creation," the Irish research firm says. Davy retains its outperform rating on the stock. Shares are up 10% at 4,352.5 pence. ([e-mail])

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Schroders FY Results Were a Mixed Bag

1017 GMT - Schroders's full-year results were mixed, Panmure Gordon says. The asset manager's wealth business made profits below expectations and its capital business reported flows and period-end assets under management short of forecasts, Panmure says. Meanwhile, the company's preferred definition of operating profit--before central costs--was shy of consensus, apparently mainly due to costs, the brokerage says. "It's a mixed bag at best today," Panmure analyst Rae Maile says in a note. Shares fall 3%.([e-mail])

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Taylor Wimpey's Early 2023 Sales Show Some Recovery but Pressure Evident

1009 GMT - Taylor Wimpey's 2022 results and early 2023 trading show the new homes market appears to be out of its trough from the fourth quarter, but sales rates are still running materially below prior years, Davy Research says. The house builder reported some recovery, but the sales are still putting further downward pressure on volume expectations, and 2023 forecasts are likely to fall materially for the company, Davy analyst Colin Sheridan says in a market comment. "Under these conditions, the company expects a volume out-turn of 9,000-10,500, which is 16% below current Visible Alpha consensus [11,553] at the midpoint," Sheridan says. Irish research firm retains its outperform rating. Shares are up 0.1% at 118.2 pence. ([e-mail])

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Flutter Entertainment US Listing Plan Makes Increasing Sense

1008 GMT - Flutter Entertainment's plans for a U.S. listing make increasing sense as it continues to pivot to North America, where it is on track for positive Ebitda in 2023, Peel Hunt analysts say in a research note. The FTSE 100 gambling and betting group's FanDuel had 50% U.S. sportsbook market share in 4Q 2022 and U.S. revenue rose 67% in the year, and with a few state launches planned for 2023, it is well-placed to become profitable, they say. The analysts add that in the U.S., there is room to optimize online gaming revenue. Peel Hunt has a buy rating on the stock with a 16,000 pence target price. ([e-mail])

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Beazley's Guidance Contains Some Prudence

1005 GMT - Beazley's guidance seems prudent, says Jefferies in a note after the specialty insurer said it sees net premium growth at mid-20s and a high-80s combined ratio for 2023. "We believe that the combined ratio guidance contains some prudence, given another year of excellent rate increases in 2023 and heavy industry claims last year," say analysts at the U.S. bank. They add the group has done this before, guiding to a COR of around 90% at the start of 2022 to then improve it to high-80s, despite losses from Hurricane Ian and Russia/Ukraine. Shares drop 8.5% at 624.5 pence and sit at the bottom of the FTSE 100. ([e-mail])

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Taylor Wimpey's Outlook Looks More Reassuring Than That of Peers

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03-02-23 0652ET