FTSE 100 Closes Down 1.8% as Royal Mail Leads the Fallers

The FTSE 100 closed down 1.8% on Thursday, with retail companies enduring a tough day and Royal Mail–the biggest faller–closing down 12% after it posted a pretax profit decline for fiscal 2022. “A lot of today’s pain is being felt by U.K. retailers after the downgrades this week by U.S. retail giants Target and Walmart, while today U.S. department store Kohl’s followed suit by warning of the effects of higher costs on their margins, and their profits,” says Michael Hewson, chief market analyst at CMC Markets U.K. Weakness is also being seen at Unilever and Reckitt Benckiser as worries over margins linger as consumers are squeezed by a cost of living crisis, Hewson adds.

 
Companies News: 

Royal Mail FY 2022 Pretax Profit Fell, Revenue Rose Slightly

Royal Mail PLC said Thursday that pretax profit fell in fiscal 2022 due to a strong comparative period, though revenue rose slightly.

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Smiths Group Nine-Month Organic Revenue Rose; Backs FY 2023 Revenue Views

Smiths Group PLC said on Thursday that organic revenue for first nine months of its fiscal 2022 grew, but reiterated its full-year guidance on revenue growth given macroeconomic uncertainties.

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National Grid Expects Flat FY 2023 Earnings After FY 2022’s Strong Growth

National Grid PLC on Thursday forecast flat earnings for fiscal 2023, and reported an improved profit for fiscal 2022.

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Currys Appoints ASOS’ Ian Dyson as Chairman

Currys PLC said Thursday that it has appointed Ian Dyson to succeed Ian Livingston as chairman in September.

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EasyJet 1H Pretax Loss Narrowed as Capacity Increased, Warns on Higher 2H Costs

easyJet PLC said Thursday that its pretax loss for the first half of fiscal 2022 narrowed as revenue rose due to increased capacity, but that fuel prices and the dollar exchange rate will add to costs in the second half.

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Investec FY 2022 Pretax Profit, Funds Under Management Rose

Investec PLC said Thursday that pretax profit and funds under management increased in fiscal 2022, driven by the postpandemic economic recovery, and raised its dividend payout.

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QinetiQ FY 2022 Pretax Profit Fell on Higher Costs

QinetiQ Group PLC said Thursday that pretax profit fell for fiscal 2022 after booking higher costs, and that it has entered fiscal 2023 with confidence, positive momentum and a healthy order book.

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Royal Mail FY 2022 Pretax Profit Fell Despite Revenue Rise; Warns on Short-Term Challenges

Royal Mail PLC said Thursday that pretax profit fell in fiscal 2022 against a strong comparative period, though revenue rose slightly, and it sees clear short-term challenges over the coming year.

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Countryside Partnerships Swung to 1H Pretax Loss, Revenue Fell

Countryside Partnerships PLC said Thursday that it swung to a pretax loss in the first half of fiscal 2022, and revenue fell on a strong comparative period.

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Homeserve Agrees to GBP4.08B Takeover by Brookfield Asset Management

Homeserve PLC said Thursday that it has agreed to a 4.08 billion pound ($5.04 billion) takeover by Brookfield Asset Management Inc.

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Young & Co.’s Brewery Swung to FY 2022 Pretax Profit; Resumes Dividend

Young & Co.’s Brewery PLC on Thursday reported a swing to pretax profit for fiscal 2022, as it returns to a more normalized performance after the pandemic disruption, and said it will resume a final dividend payout.

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Fevertree Drinks Says It Had Solid Start to Year; Backs 2022 Guidance

Fevertree Drinks PLC said Thursday that it has had a solid start to the year and expects to meet the board’s expectations for 2022 as a whole.

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Gamma Communications Sees 2022 Ebitda, EPS at Upper Half of Expectations

Gamma Communications PLC said Thursday that it expects 2022 earnings to be at the upper half of the range of market forecasts.

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Euromoney Institutional Investor 1H 2022 Pretax Pft Fell; Expects FY to Top Views

Euromoney Institutional Investor PLC said Thursday that pretax profit fell after booking higher exceptional costs for the first half of fiscal 2022, and that it expects full-year results to be above the board’s expectations.

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Provident Financial Says on Track to Meet 2022 Market Expectations

Provident Financial PLC said Thursday that its performance during the first quarter was in line with management expectations and that it remains on track to meet market views for 2022.

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Gym Group Targets GBP40 Mln-GBP50 Mln Pretax Profit by 2025

Gym Group PLC said Thursday that it intends to achieve a pretax profit of between 40 million and 50 million pounds ($49.4 million-$61.7 million) by 2025.

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Great Portland Estates Swung to FY 2022 Pretax Profit Despite Revenue Slip

Great Portland Estates PLC said Thursday that it swung to a pretax profit in fiscal 2022 despite a slip in revenue, after a positive revaluation of its investment properties.

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EasyJet Bookings in Past 10 Wks 6% Above 2019; 1H 2022 Pretax Loss Narrowed — Update

easyJet PLC said Thursday that bookings in the past 10 weeks have been 6% above the same period in 2019, as it reported a narrowed pretax loss for the first half of fiscal 2022 while revenue rose because of increased capacity.

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Begbies Traynor Sees FY 2022 Results Ahead of Market Views

Begbies Traynor Group PLC said Thursday that its results for the year ended April 30 are expected to be comfortably ahead of market forecasts.

 
Market Talk: 

Fevertree Drinks’ Strategy to Improve Profit Despite Inflation

0857 GMT – Fevertree Drinks’ medium-term improvements in profitability are starting to appear and it could be moving into an upgrade cycle despite higher raw-material inflation, Liberum analyst Wayne Brown says in a research note. The London-listed premium-mixers supplier reported a 1Q performance in line with expectations, and the commissioning of its second U.S. bottling line on the East Coast will boost production in 1H and relieve logistic costs, Brown says. “As local bottling plants scale, they will support further product margin growth both through efficiencies and through local sourcing of glass and packaging materials,” he adds. Liberum has a buy recommendation on the stock and a target price of 2,300 pence. (michael.susin@wsj.com)

National Grid Beat FY 2022 Expectations

0836 GMT – National Grid’s results for the year ended March 31 were better than expected, Jenny Ping from Citi says in a note. Underlying operating profit of GBP4.0 billion was above the GBP3.8 billion consensus, and underlying EPS of 65.3 pence also exceeded the 62.4 pence the market forecast, the analyst notes. The dividend and the reported net debt were in line with expectations. Ping reiterates a neutral rating on the U.K. energy infrastructure company, arguing that the shares are fully valued and there is limited reason to get excited on fundamentals. (jaime.llinares@wsj.com)

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

(END) Dow Jones Newswires

May 19, 2022 12:48 ET (16:48 GMT)

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