UK 2023-24 Net Gilt Issuance Seen Much Lower Than Previously Forecast, Says RBC

UK FY 2023-24 Net Gilt Issuance Seen Much Lower Than Forecast in November

1046 GMT - RBC Capital Markets analysts expect U.K. gilt issuance for the fiscal year 2023-24, net of Bank of England's gilt purchases and sales, will reach GBP170 billion, a record high but significantly lower than its November forecast of GBP255 billion as government finances improve. "The near-term outlook for the public finances has improved since the Office for Budget Responsibility's November forecast round," they say, "We see net gilt issuance for 2023-24 at GBP170 billion - an all-time high and more than double 2022/23, yet significantly lower than our forecast from November of GBP255 billion." ([e-mail])

 
Companies News: 

Rightmove 2022 Pretax Profit Rose; Confident in Further 2023 Growth

Rightmove PLC on Friday reported a 6.9% rise in 2022 pretax profit due to customer product uptake, price increases and growth, and said it was increasingly confident in continued revenue per advertiser growth in 2023.

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Avation Swung to 1H Pretax Profit; Will Focus on Leasing Greener Aircraft

Avation PLC said Friday that it swung to a pretax profit for the first half of fiscal 2023 after booking lower costs, and that its future strategy will focus on leasing modern, low CO2 emissions, fuel-efficient aircraft.

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Pearson 2022 Revenue, Profit Rose After Strong Momentum, Strategic Initiative Progress

Pearson PLC said Friday that pretax profit and revenue increased for 2022 after it saw strong momentum and progress on its strategic initiatives.

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Enwell Says Ukraine Gas License Valid After Court Ruling

Enwell Energy PLC said Friday that the production license for its Ukrainian gas and condensate field remains valid after the Supreme Court of Ukraine ruled in its favor on Feb. 23.

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IMI 2022 Pretax Profit Rose; Sees Higher Adjusted EPS for 2023

IMI PLC said Friday that pretax profit for 2022 rose as organic revenue increased in all three of its units and that it expects earnings per share to increase in 2023.

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Cordel Appoints New CFO After Robert Lojszczyk Retires

Cordel Group PLC said Friday that Chief Financial Officer Robert Lojszczyk has decided to retire and that Thouraya Walker has been appointed as his successor.

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Duke Royalty's 3Q Recurring Cash Revenue Rose to New Record High

Duke Royalty Ltd. said Friday that its recurring cash revenue continued to grow to record levels in the third quarter of fiscal 2023, and it expects further growth in the fourth quarter.

 
Market Talk: 

Rightmove's 2022 Profit Misses Mark But ARPA Growth Welcome

1000 GMT - Rightmove's 2022 pretax profit of GBP241.3 million fell short of analysts' expectations of GBP243.4 million, according to four analysts from FactSet, Interactive Investor says. However, it reported an 11% increase in the closely watched metric of average revenue per advertiser and hiked its dividend, Interactive head of investment Victoria Scholar says in a market comment. The online property portal's share price got off to a strong start to the year in January amid hopes that mortgage rates would start to ease later this year and amid a boost to risk appetite among investors, he notes. "However, that optimism faded in February with shares shedding more than 10% over the past month," Scholar says. Shares are down 2.1% at 552.2 pence. ([e-mail])

Rightmove Might See Margins Hit as Agency Budgets Tighten

0956 GMT - Rightmove's argument it doesn't expect to be particularly affected by housing market turmoil may seem eyebrow-raising, but it's based on its subscription-based business model rather than transaction numbers, AJ Bell says. The online property portal is safe as long as agents don't crash out of the market--though there have been loud complaints about it squeezing more out of its customers--and attempts to increase prices further at a time of rising costs are likely to draw more protests, AJ Bell investment director Russ Mould says in a market comment. "It certainly seems possible that Rightmove will struggle to upsell clients to premium packages and this could have an impact on margins in 2023," Mould says. Shares are down 2.0% at 552.6 pence. ([e-mail])

Rightmove's Market Dominance Still Looks Secure

0944 GMT - Rightmove's 2022 traffic might have slipped slightly on-year, but the company still increased revenue and profit, with users spending more as the internet continues to disrupt the traditional high street estate agency model, Begbies Traynor says. The online property portal wasn't even derailed by autumn's mini-budget chaos, with agents working harder for sales and needing to promote properties more--driving even more interest in the company, says Begbies partner Julie Palmer in a market comment. "Property prices may be softening but with estate agents so dependent on Rightmove, the company's got a place in the market that allows it to weather downturns and a model that means its future is assured unless another competitor offering comes along and ends its dominance," Palmer says. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

03-03-23 0630ET