FTSE 100 Drops as HSBC, Whitbread Fall After Results

0749 GMT - The FTSE 100 drops 0.5% to 6983 points with HSBC and Whitbread among the worst performers after releasing earnings. HSBC shares decline 4.8% after the bank reported a sharp fall in third-quarter profits due to rising loan losses and asset sales while also announcing that Ewen Stevenson will step down as chief financial officer at the end of this year. Whitbread falls 1.7% after the owner of the Premier Inn hotel chain warned of a jump in costs this year driven by soaring inflation. Oil-and-gas stocks including Shell and Harbour Energy are also weaker on lower crude prices. (renae.dyer@wsj.com)


 
Companies News: 

Whitbread Swung to 1H Pretax Profit on Strong UK Leisure Demand

Whitbread PLC reported Tuesday a swing to a pretax profit for the first half of fiscal 2023 as revenue rose on strong leisure demand in the U.K., but said trading conditions in the value end of the pub-restaurant market remain challenging.

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Shoe Zone FY 2022 Boosted by Full-Year Store Openings, Back-to-School Performance

Shoe Zone PLC said Tuesday that revenue for fiscal 2022 rose 31% as its stores benefited from a full year of trading and a positive back-to-school performance during the second half.

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Eurowag Sees Strong 2022 To-Date; CFO to Step Down

W.A.G Payment Solutions PLC said Tuesday that it has performed strongly in the first nine-months of 2022, and Chief Financial Officer Magdalena Bartos intends to step down.

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THG 3Q Revenue Boosted by Beauty, Nutrition; Backs 2022 Guidance

THG PLC on Tuesday reported a 2.1% rise in third-quarter revenue--which was boosted by beauty and nutrition, its two largest units--and backed its full-year guidance.

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Sika-MBCC Merger Remedy Considered by U.K.'s CMA

The U.K.'s Competition and Markets Authority said Tuesday that it was considering a solution to address concerns relating to the merger of Sika AG and MBCC Group.

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Pendragon 3Q Underlying Profit Hit by Higher Costs, Interest; Backs FY Guidance

Pendragon PLC said Tuesday that underlying pretax profit for the third quarter of the year fell 41% as it booked higher interest charges and operating costs, and compared with a strong comparative performance, but said it remains on track to meet the board's full-year profit expectations.

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Deepverge's Chief Executive Steps Down, Nigel Burton Appointed Interim CEO; Shares Fall

Deepverge PLC shares fell on Tuesday after it said that Chief Executive Gerard Brandon will step down with immediate effect and that Nigel Burton has been appointed interim chief executive.

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Corero Sees Lower 2022 Earnings Despite Higher Revenue

Corero Network Security PLC said Tuesday that it expects adjusted earnings for 2022 to fall as customer order timing has been hit by extended decision making and buying cycles, though revenue is expected to rise.

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Upland Resources to Raise GBP310,000 for Malaysian Onshore Project

Upland Resources Ltd. said Tuesday that it will raise 310,000 pounds ($349,649) via a placing, and that it will use the proceeds to progress activities at Malaysia's onshore Block SK334.

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Genuit 9-Month Revenue Rose; Sees 2022 Profit at Lower End of Views

Genuit Group PLC said Tuesday that revenue rose in the first nine-months of 2022, but that due to uncertainty hitting performance in the latter part of the third quarter it expects to report full-year profit at the lower end of analyst expectations.

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On the Beach FY 2022 Sales 16% Ahead of Prepandemic Level; Underlying Pretax Profit in Line

On the Beach Group PLC said Tuesday that group sales for fiscal 2022 were 16% ahead of fiscal 2019, and that underlying pretax profit for the year was in line with market expectations.

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Various Eateries to Miss FY 2022 Profit Forecasts but Beat Sales Estimates

Various Eateries PLC said Tuesday that it will miss fiscal 2022 profit expectations due to its decision not to pass on price increases to customers in full, but sales are expected to be beat forecasts at over 40 million pounds ($45.1 million).

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Ingenta Plans to Return GBP2.1 Mln to Holders via Discounted Tender Offer

Ingenta PLC said Tuesday that it plans to return up to 2.1 million pounds ($2.4 million) to shareholders via a tender offer given its continued strong cash generation, which is expected to continue.

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Altitude Group Sees 1H Revenue Rising; Expects to Meet 2022 Market Views

Altitude Group PLC said Tuesday that it has delivered strong revenue growth in the first half of fiscal 2023, and it expects to at least meet market expectations for the full-year.


 
Market Talk: 

Sterling Might Continue to Underperform With Sunak as UK PM

0735 GMT - Sterling will continue to underperform even as the appointment of Rishi Sunak as U.K. prime minister later Tuesday is likely to restore economic orthodoxy, reducing risks to the currency, Standard Chartered says. "A weak U.K. economy, a difficult post-Brexit adjustment and likely Bank of England hesitation to meet market expectations of [interest rate] hikes suggest to us that the GBP will still lag other G10 currencies, even if not by as much as we earlier thought," Standard Chartered forex analyst Steve Englander says in a note. Sunak might also struggle to restore confidence, he says. StanChart now expects GBP/USD to end 2022 at 1.12, compared to its previous forecast of 1.05. GBP/USD rises 0.1% to 1.1292.(renae.dyer@wsj.com)

Sterling Rises as Sunak Set to be Appointed UK Prime Minister

0713 GMT - Sterling rises as Rishi Sunak will become prime minister Tuesday, reducing political uncertainty. Sunak will be appointed prime minister by King Charles III and replaces Liz Truss, who stepped down after a tax-cutting budget that sparked market turmoil. "News that Rishi Sunak, the former U.K. chancellor of exchequer, is set to become prime minister, may help GBP/USD continue to hold the line at around 1.13, but investors will probably want to see details of the new fiscal plan before a concrete assault on 1.14-1.15 can emerge," UniCredit Research analysts write. The government is expected to set out its medium-term fiscal plan on Oct. 31. GBP/USD rises 0.1% to 1.1289 and EUR/GBP falls 0.3% to 0.8733. (renae.dyer@wsj.com)


Contact: London NewsPlus; paul.larkins@wsj.com

(END) Dow Jones Newswires

10-25-22 0406ET