Darktrace Launches Buyback After Shares Hit Low: The London Rush
Darktrace’s share buyback, announced this morning, comes at the right time as the company’s shares hit record lows following a short sale report yesterday. Meanwhile, in a rare candid comment, Vodafone’s interim CEO said the company “could do better” after a poor performance in Europe – the telecoms giant was one of the busiest companies on the FTSE 100 last year and announced a string of deals to new investors . Finally, it’s time to turn your attention to Threadneedle Street
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Published on 02/01/2023 • 3 minutes read
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(Bloomberg) – Darktrace’s share buyback, announced this morning, comes at the right time considering the company’s shares hit a record low following a short sale report yesterday. Meanwhile, in a rare candid comment, Vodafone’s interim CEO said the company “could do better” after a poor performance in Europe – the telecoms giant was one of the busiest companies on the FTSE 100 last year and announced a string of deals to new investors . Finally, it’s time to turn your attention to Threadneedle Street tomorrow for the Bank of England’s first rate decision for 2023: it could set the tone for the year ahead.
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Here’s the top business news from London this morning:
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In the city
Darktrace Plc: The cybersecurity firm announced a £75m share buyback and said it was the best use of its additional cash in “current market conditions”.
- The company responded to a report by short seller Quintessential Capital Management yesterday and said it had “complete confidence” in its accounting practices and the integrity of its financial statements
Vodafone Group Plc: The telecoms company met analysts’ expectations for the third quarter, but CEO Margherita Della Valle said the company “could do better” amid falling sales in Europe.
- The company’s sales in Europe fell in Germany, Italy and Spain, although there was growth in the UK and elsewhere on the continent
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GSK Plc: The pharmaceutical giant’s fourth-quarter results beat analysts’ expectations after its shingles vaccine posted better-than-expected sales.
- The company said it expects adjusted operating profit to grow by up to 12% next year, despite an expected decline in sales at its general medicine unit
Entain Plc: The gaming company believes it has earned nearly £1bn in Ebitda for 2022, earlier than expected after its group net gaming revenue rose 12% for the year.
In Westminster
Chancellor Jeremy Hunt has been urged to cut taxes at a meeting with ordinary Tory MPs after the International Monetary Fund issued a gloomy forecast for Britain’s economic outlook.
The Bank of England should “meet market expectations” and hike its official interest rate by 50 basis points to 4% tomorrow, says Bloomberg Opinion’s Marcus Ashworth, adding the central bank should then pause to assess the economic impact of higher borrowing costs .
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That’s because prices in UK shops rose to their highest level since at least 2005 in January, with retailers offering fewer discounts than during the holiday season.
Meanwhile, many office workers will today be forced to work from home as widespread industrial action closes schools and paralyzes Britain’s rail network. With the school holidays approaching, holidaymakers returning to the UK by ferry could face disruption after Border Force officials announced plans to strike at several UK and French ports.
In case you missed it
Stonegate Pub Co. spent around £1.3billion buying rival Ei Group just before the pandemic, becoming the UK’s largest pub group. Three years later – and with £2.6billion in debt – the owner of the Slug and Lettuce chain is ready to downsize. Stonegate, owned by private equity firm TDR Capital, plans to sell 1,000 of its pubs, people familiar with the matter told Bloomberg.
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To see how Brexit has changed banking, just look at the rise in top earners in JPMorgan Chase & Co.’s European operations.
Haleon Plc, the consumer health company that emerged from GSK, is in the early stages of evaluating large potential deals to bolster its portfolio of brands, people familiar with the matter told Bloomberg.
looking ahead
Energy giant Shell Plc, mining group Anglo American Plc and telecoms company BT Group Plc are among the companies set to update the market tomorrow.
BT was among the worst performers in the telecoms index Stoxx 600 last year but has rebounded so far this year, up more than 1%. The company’s Openreach infrastructure unit will be in focus after news of a decline in broadband connections in November, says Matthew Bloxham, an analyst at Bloomberg Intelligence. Meanwhile, Morgan Stanley and HSBC say falling energy prices could boost sector earnings this year and next, depending on hedging strategies.
Bloomberg estimates suggest that adjusted EBITDA likely grew less than 2% sequentially in the third quarter. In the consumer space, analysts expect profits to fall, although Bloxham says a 14.4% price increase for most broadband and mobile subscribers suggests the company is comfortable with customer retention and isn’t afraid of rivals trying to take market share by undercutting to conquer.
For a more thoughtful look at UK business and financial news, log on to Money Distilled with John Stepek.
