Market News
FTSE 100: 7123.86 18.14 0.26%
FTSE 250: 23,347.73 58.08 0.25%
FTSE AIM: 1258.48 -0.21 -0.02%
The FTSE 100 enjoyed a relatively upbeat day after a strong
upward revision to the services purchasing managers index and
upbeat corporate earnings. The U.K reopening in mid-July has helped
drive demand in the hard-hit services sector, lifting the pound in
the process, and it is likely growth will receive a boost going
forward, said Josh Mahony, senior market analyst at IG Group
Holdings PLC. "That sterling strength does undermine the FTSE 100
pricing, with the main U.K. index falling short of mainland
European gains. After all, the weakness we have seen across
eurozone and U.S. data does take some of the heat off the likes of
the [European Central Bank] and [Federal Reserve] and they consider
taper timelines," Mahony said.
Companies News:
THG PLC Buys Cult Beauty for GBP275 Mln; Raises 2021
Guidance
THG PLC said Wednesday that it is buying online beauty retailer
Cult Beauty Ltd. for 275 million pounds ($382.7 million) in cash, a
deal that will boost sales and adjusted Ebitda and prompting the
company to raise its guidance.
---
Marshall Motor Holdings Expects 2021 Underlying Pretax Profit of
Not Less Than GBP40 Mln
Marshall Motor Holdings PLC said Wednesday that it expects to
post underlying pretax profit of not less than 40 million pounds
($55.7 million) for 2021, and it warned about vehicle-supply issues
and other effects related to the coronavirus pandemic.
---
Drum Income Plus REIT in GBP21.6 Mln Takeover Talks With
Custodian REIT
Drum Income Plus REIT PLC said Wednesday that it is in talks
with Custodian REIT PLC about a possible takeover of Drum that
values the company at 21.6 million pounds ($30.1 million), and that
it would be minded to recommend to shareholders.
---
James Halstead Says 2H Pretax Profit, Revenue Reached Record
Levels
James Halstead PLC said Wednesday that its performance for the
second half of fiscal 2021 was very strong, and that it expects to
post both record revenue and pretax profit for the period.
---
Ibstock Posts 1H Profit, Sees 2021 Adjusted Ebitda Ahead of
Previous View
Ibstock PLC on Wednesday reported that it swung to profit for
the first half of the year, as revenue recovered to close to
pre-pandemic levels, and said that it expects 2021 adjusted
earnings to be ahead of previous expectations.
---
DWF Group Partners Sell 13.3 Mln Shares at 102p Apiece
Jefferies International Ltd. said Wednesday that 13.3 million
ordinary shares of DWF Group PLC have been sold on behalf of
certain partners at 102 pence each.
---
Seeen's Multichannel Network 1H Adjusted Pretax Loss
Narrowed
Seeen PLC said Wednesday that its multichannel network arm's
adjusted pretax loss narrowed for the first half of the year, and
that revenue and revenue per thousand views rose significantly.
---
Trinity Exploration & Production Chairman Bruce Dingwall
Dies
Trinity Exploration & Production PLC said Wednesday that its
Executive Chairman Bruce Dingwall died on Tuesday.
---
LSL Property Services 1H Pretax Profit, Revenue Rose
LSL Property Services PLC said Wednesday that pretax profit and
revenue for the first half rose, and that performance in July has
been in line with the board's expectations.
---
Global Invacom Says It Swung to 1H Net Loss After Tax, Warns on
Supply-Chain Disruption
Global Invacom Group Ltd. said on Wednesday that it expects to
report a swing to a net loss after tax, and lower revenue for the
first half of 2021, and that it continues to be hurt by
supply-chain disruption.
---
Amigo Holdings Must Publish FY 2021 Accounts by Sept. 2 to Avoid
Loan Covenant Breach
Amigo Holdings PLC said Wednesday that it is working with its
advisors to file its fiscal 2021 accounts by Sept. 2 to avoid
breaching one of the covenants for its 7.625% senior secured notes
2024.
Market Talk:
Cairn Energy Seen as Facing Risks Despite Transformation
0933 GMT - Having moved to strip out Cairn Energy's soon-to-be
legacy U.K. production assets, and incorporated the new Egyptian
portfolio that is being acquired from Shell, Peel Hunt resumes
coverage of the FTSE 250 oil-and-gas company with a hold
recommendation. These deals will turn Cairn into a new company,
offering more visibility on production growth and a broader
portfolio of reinvestment opportunities, the brokerage says.
However, to acknowledge the various risks to delivery that still
lie ahead for Cairn, Peel Hunt sets the target price at 130 pence a
share--lower than the 172 pence implied by its risked
net-asset-value estimate of GBP857 million.
---
Taylor Wimpey's Aggressive Land-Buying Policy to Pay off if
Economy Doesn't Falter
0918 GMT - Taylor Wimpey could be one of the pandemic's biggest
winners, Hargreaves Lansdown's Laura Hoy says after the
housebuilder reported a double-digit rise in house prices, a strong
forward order book, and cancellation rates in line with 2019
levels. The group was bolder than some of its peers, with an
aggressive land-buying strategy that will pay off if the market
remains buoyant, the analyst says. Taylor Wimpey will suffer if the
economy stumbles in the wake of the pandemic, but so far the group
is building from a strong base, she says. Shares in Taylor Wimpey
are up 3.2% after the company reported first-half results and
raised full-year completions and operating profit guidance.
---
UK Services Sector Growth Softened in July
0908 GMT - The U.K. service sector recovery lost some momentum
in July, according to IHS Markit. The services PMI came in at 59.6
in July, down from 62.4 in June, the lowest reading since March and
suggesting the slowest rate of expansion since the end of the
winter lockdown. "More businesses are experiencing growth
constraints from supply shortages of labour and materials, while on
the demand side we've already seen the peak phase of pent up
consumer spending," IHS Markit economics director Tim Moore says.
Wage pressures, higher fuel prices and greater transport bills were
the most commonly cited factors pushing up input costs in July,
with the overall rate of inflation registering the steepest rise
since the survey began 25 years ago, the report says.
---
Successful Delivery of Juanicipio Project Is Key Catalyst for
Fresnillo
0905 GMT - Fresnillo and its joint-venture partner MAG Silver
remain on track for commissioning the Juanicipio plant in Mexico in
4Q 2021, with associated rampup in 2022, Jefferies says. From an
attributable growth perspective, the bank estimates Juanicipio
being around 40% of Fresnillo's on-year silver production growth
next year. The successful delivery of volume growth from this
project is a key catalyst for the valuation of the mining company,
Jefferies says. Further out, the Rodeo project in Mexico has the
potential to add 130,000-150,000 ounces of gold production a year
from 2025 onward, the bank says.
---
UK Services Sector Growth Softened in July
0905 GMT - The U.K. service sector recovery lost some momentum
in July, according to IHS Markit. The services PMI came in at 59.6
in July, down from 62.4 in June, the lowest reading since March and
suggesting the slowest rate of expansion since the end of the
winter lockdown. "More businesses are experiencing growth
constraints from supply shortages of labour and materials, while on
the demand side we've already seen the peak phase of pent up
consumer spending," IHS Markit economics director Tim Moore says.
Wage pressures, higher fuel prices and greater transport bills were
the most commonly cited factors pushing up input costs in July,
with the overall rate of inflation registering the steepest rise
since the survey began 25 years ago, the report says.
---
Fresnillo Should Consider Buyback, Jefferies Says
0855 GMT - Fresnillo has ample capacity to pay a special
dividend, but the Mexican mining company should also consider
launching a share buyback program, especially in light of current
trading multiples, Jefferies says. With production increasing by
year-end and capital expenditure rolling over, free cash flow will
build upon a net cash balance sheet already at $35 million, the
bank says. Fresnillo will achieve free cash flow of $389 million in
the second half of 2021, and $1.1 billion in 2022, Jefferies
estimates. "If Fresnillo allocated half of this free cash flow to a
buyback, the common dividend would be more than covered and
year-end 2022 net cash would be $340 million," Jefferies says.
---
Legal & General 1H Tops Hopes, Reflects Confidence
0853 GMT - Shares in Legal & General are among the FTSE
100's biggest risers, up 2% to 270 pence after the pension and fund
manager reported higher first-half operating profit. Overall
numbers beat consensus and the interim dividend of 5.18p, up 5%
year-on-year, reflects the group's commitment to its dividend
policy and its confidence in achieving cash-generation targets and
increasing long-term profit, Panmure Gordon says. L&G expects a
double-digit increase in 2021 operating profit. "We reiterate our
buy rating with unchanged target price of 325p," Panmure analyst
Ming Zhu says.
Contact: London NewsPlus, Dow Jones Newswires;
+44-20-7842-931
(END) Dow Jones Newswires
August 04, 2021 12:26 ET (16:26 GMT)
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