The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksNUM.L Share News (NUM)

  • There is currently no data for NUM

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

LONDON BRIEFING: NatWest profit rises; Deutsche Bank buys Numis

Fri, 28th Apr 2023 07:53

(Alliance News) - Stocks in London were set to open higher on Friday, after a solid session for Asian equities and a strong finish in New York on Thursday.

US stocks were lifted by strong tech earnings. Meta Platforms was the star performer, surging 14% after first-quarter results beat expectations, boosted by a surprise increase in advertising revenue.

Earlier on Thursday, a report showed US economic growth slowed markedly and came in below market expectations in the first quarter.

Numbers from the Bureau of Economic Analysis showed that US gross domestic product grew by 1.1% on an annualised basis in the first three months of 2023, compared to the last three months of 2022, slowing from a 2.6% rise on the same basis in the fourth quarter of 2022.

Economic growth fell short of FXStreet-cited consensus of a 1.9% annualised climb.

In Japan on Friday, the Bank of Japan concluded its first meeting under its new governor, Kazuo Ueda, deciding to leave its ultra-easy monetary policy unchanged.

In London, state-backed lender NatWest reported a rise in first-quarter profit, despite a period of significant macro disruption. City broker Numis accepted a takeover offer from Deutsche Bank. Pearson said its first-quarter results were ahead of expectations.

Here is what you need to know at the London market open:

----------

MARKETS

----------

FTSE 100: called up 21.92 points, or 0.3%, at 7,853.50

----------

Hang Seng: up 0.4% at 19,928.15

Nikkei 225: closed up 1.4% at 28,856.44

S&P/ASX 200: closed up 0.2% at 7,309.20

----------

DJIA: closed up 524.29 points, 1.6%, at 33,826.16

S&P 500: closed up 2.0% at 4,135.35

Nasdaq Composite: closed up 2.4% at 12,142.24

----------

EUR: lower at USD1.1014 (USD1.1024)

GBP: lower at USD1.2475 (USD1.2492)

USD: higher at JPY135.35 (JPY133.95)

Gold: higher at USD1,985.84 per ounce (USD1,984.30)

(Brent): higher at USD78.69 a barrel (USD78.08)

(changes since previous London equities close)

----------

ECONOMICS

----------

Friday's key economic events still to come:

11:00 CEST EU gross domestic product

09:55 CEST Germany labour market statistics

14:00 CEST Germany consumer price index

11:00 BST Ireland retail sales

09:45 EDT US ISM Chicago business survey

10:00 EDT US University of Michigan survey of consumers

----------

The International Monetary Fund urged European central banks to "kill the beast" of inflation by pursuing interest rate hikes. "You need to go and kill that beast" because if rate rises are paused history is "littered" with examples where "you will need to have a second attempt" at bringing down inflation, inflicting more economic pain, the IMF's European department director Alfred Kammer told reporters in Stockholm.

----------

BROKER RATING CHANGES

----------

Berenberg reinitiates Rightmove with 'hold' - price target 540 pence

----------

Numis starts Coats with 'buy' - price target 100 pence

----------

Berenberg cuts Kerry price target to 116 (120) EUR - 'buy'

----------

COMPANIES - FTSE 100

----------

NatWest said it delivered a strong performance in the first quarter of 2023 despite a period of significant macro disruption and uncertainty. The bank reported a profit before impairment losses or releases of GBP1.89 billion, up from GBP1.19 billion a year prior. Pretax operating profit totalled GBP1.82 billion, up from GBP1.22 billion. Total income climbed to GBP3.88 billion from GBP3.00 billion. Its return on tangible equity was 19.8%, compared to 11.3% a year prior. CET1 ratio fell to 14.4% from 15.2%. Chief Executive Alison Rose said: "NatWest Group's strong performance in Q1 2023 is underpinned by our robust balance sheet, our high levels of capital and liquidity and our well-diversified loan book."

----------

Pearson reported a strong start to 2023, with first-quarter results coming ahead of expectations. The educational materials publisher reported total underlying sales growth of 2% in the first quarter of 2023. When excluding its OPM business, for which it has entered into an agreement to sell, underlying growth was 6%. The strongest underlying growth was seen in English Language Learning which grew by 66%. Chief Executive Andy Bird said: "Pearson has had a strong start to the year with results ahead of our expectations. This ongoing momentum is testament to our increasingly interconnected, consumer-focused, and innovative approach alongside relentless commercial execution. We delivered double-digit sales growth in our enterprise facing businesses, reflecting our strategy to address the upskilling and reskilling opportunity around the world."

----------

COMPANIES - FTSE 250

----------

Rotork reported that order intake was ahead by a mid-teen percentage year-on-year on an organic constant currency basis in the period from January 1 to April 2, with all divisions making "encouraging" progress. The industrial valve manufacturer explained that its orders continue to be driven largely by customers' operational spend, with the period seeing a return of a "relatively high level" of large project activity. Revenue in the period grew 18% year-on-year on an organic constant currency basis, against a more supply-chain disrupted comparative period, Rotork said. Sales benefited from both volume and selling price increases, with all divisions and regions ahead year-on-year, the company explained. Rotork noted particularly strong growth in the Americas. Consequently, it now expects 2023 adjusted operating profit to be slightly ahead of its earlier expectations.

----------

Hikma Pharmaceuticals said it had a good start to the new year, noting a stronger-than-expected start in its Generics business and a continued good performance from its Injectables and Branded businesses. Based on the expectation-beating performance from its Generic business in the year-to-date, Hikma updated its full year guidance for the Generics business. It now expects revenue growth close to 20%, compared with its previous guidance of low double-digit growth. Hikma declared a final dividend of 37 US cents.

----------

OTHER COMPANIES

----------

Deutsche Bank reached an agreement with Numis Corp for a takeover offer of the London-based broker and investment bank. Deutsche Bank will pay 350 pence per share, giving Numis a value of GBP410 million. The price represents a 72% premium to Numis's closing price of 204p on Thursday. The price comprises of 339p in cash, an interim dividend of 6p per share for the six months ended March 31, and an additional interim dividend of 5p per share which is conditional on the transaction becoming effective. Numis directors intend unanimously recommend the takeover offer.

----------

Kingspan said it had a good first quarter despite a challenging environment, and proposed a delisting from the London Stock Exchange. In the quarter it said sales neared EUR2 billion, up 4% against the prior year but down 3% on an underlying basis. It noted that its Americas market was particularly strong, while its Central & Eastern Europe market remained tough. The building materials company said that, following a review of its listing arrangements, it proposes to delist from London, subject to shareholder approval. This is because its current share trading on the LSE is "negligible" as a percentage of total trading, it said. Kingspan added it remains "committed" to its primary listing on the main market of the Euronext Dublin, where the majority of its share trading takes place. Looking forward, the company said it expects to deliver a trading profit of just over EUR400 million for the first half of 2023.

----------

Kape Technologies noted that its takeover by Unikmind at a price of USD3.60 per share is now unconditional. This comes after Unikmind became interested in around 80% of its existing share capital, therefore satisfying the conditions of its offer. Kape has made an application for the cancellation of its shares to trading on AIM. It is expected that the cancellation will take effect on May 31.

----------

WANdisco announced that the independent investigation undertaken by FRP Advisory has drawn its conclusions regarding the scope, scale and limits of the irregularities associated with received purchase orders and related revenue and sales bookings by one senior sales employee. The conclusions are that all of the purchase orders associated with the senior sales employee are illegitimate, while all other purchase orders not associated with or secured by the senior sales employee are legitimate. The review also concluded that it was possible to provide a completely definitive conclusion that there has been no unauthorised use of its technology by a third party. WANdisco said this supports its initial view that the irregularities are as a result of the actions of one senior sales employee only.

----------

By Heather Rydings, Alliance News senior economics reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2023 Alliance News Ltd. All Rights Reserved.

More News
29 Mar 2019 09:32

Numis Affirms Guidance For Lower Interim Revenue But Activity Picks Up

LONDON (Alliance News) - Numis Corp on Friday reiterated its guidance for a 26% decline in interim revenue amid lower volumes in the UK equity market.In February at its annual general the a

Read more
29 Mar 2019 07:41

LONDON MARKET PRE-OPEN: AstraZeneca Raises Cash For Deal With Daiichi

LONDON (Alliance News) - Stock prices in London are called for a positive start on Friday, following Asian markets higher after progress was reported in talks between the US and China. IG futures

Read more
8 Feb 2019 13:34

Brooks Macdonald Appoints New Chair As Christopher Knight Retires

LONDON (Alliance News) - Investment firm Brooks Macdonald Group PLC on Friday said it appointed Alan Carruthers as chair with effect from March 14.Carruthers will join after the publication

Read more
5 Feb 2019 17:28

UPDATE: Numis Appoints Former Standard Life CFO To Board

LONDON (Alliance News) - Numis Corp PLC on Tuesday said it has appointed the former chief financial officer of Standard Life PLC to its board.Shares in Numis closed down 12% at 240.00 pence

Read more
5 Feb 2019 10:19

WINNERS & LOSERS SUMMARY: Indivior Drops After US Court Rejects Appeal

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.----------FTSE 100 - up 4.5%. The oil major said it will make the

Read more
5 Feb 2019 10:11

Numis transactions fall 25% in first four months of year

(Sharecast News) - Trading at City broker Numis has completed around a quarter fewer deals in the past four months compared to the same period a year ago, after the material stock index declines and amid the uncertain domestic political situation.

Read more
5 Feb 2019 08:53

Numis Shares Fall As Trading Is Hurt By Challenging Market Conditions

LONDON (Alliance News) - Numis Corp PLC on Tuesday said that trading over the past four months has been hampered by material declines in UK equity indices due to a challenging domestic political

Read more
29 Jan 2019 15:50

UK Shareholder Meetings Calendar - Next 7 Days

Wednesday 30 JanuaryHenderson European Focus TrustRenew HoldingsTopps TilesJPMorgan 1

Read more
5 Dec 2018 09:50

Numis full-year profit drops as it boosts headcount

(Sharecast News) - Numis reported a 17.4% drop in full-year profit on Wednesday, with staff-related costs up as it boosted its headcount.

Read more
5 Dec 2018 08:51

Numis Holds Annual Payout Amid Lower Profit On Increased Investment

LONDON (Alliance News) - Broker Numis Corp PLC held its annual dividend Wednesday as profit fell on increased investment despite revenue rising, and as it cautioned of increasingly challenging the

Read more
28 Nov 2018 15:57

UK Earnings, Trading Statements Calendar - Next 7 Days

Thursday 29 November Thomas Cook GroupFull Year ResultsBritvicFull Year Year Mail & 3

Read more
15 Oct 2018 17:41

Premier Technical Services To Acquire Electrical Testing Company (ALLISS)

LONDON (Alliance News) - Premier Technical Services Group PLC said Monday it plans to acquire Guardian Electrical Compliance Ltd for an initial cash consideration of GBP12.0 consideration of up to

Read more
28 Sep 2018 14:48

Staff costs push profits lower at Numis

(Sharecast News) - Investment banking group Numis Corporation updated the market on its trading for the year ending 30 September on Friday, reporting a "good trading performance" in the year, although it said revenue in the second half did not reach the level achieved in a "particularly strong" first half.

Read more
28 Sep 2018 10:54

WINNERS & LOSERS SUMMARY: Applegreen Gains 11% As It Hits The Motorway

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Friday.----------FTSE 100 - LOSERS----------RSA down 8.9%.

Read more
28 Sep 2018 10:13

Numis Expects Annual Profit To Be Lower Due To Higher Staff Costs

LONDON (Alliance News) - Numis Corp PLC on Friday said it expects its profit for the year ending September to be lower than the previous year due staff costs being "materially" in Numis

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.