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.

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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.

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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.

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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.

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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.

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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.

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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.

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Trinity Exploration & Production Chairman Bruce Dingwall Dies

Trinity Exploration & Production PLC said Wednesday that its Executive Chairman Bruce Dingwall died on Tuesday.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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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