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(Alliance News) - AIM-listing Novacyt SA on Monday reported booming sales of its Covid-19 test, saying it has benefited from rapidly developing the molecular test and launching it back in January.
Novacyt reported revenue of EUR72.4 million in the first half of 2020, leaping from just EUR7.2 million a year before. It said sales of the Covid-19 test were EUR25.4 million in June alone, and it expects revenue in the second half to be greater than in the first.
The company said it recently signed a "major" distribution agreement in the US, and that market is delivering significant sales growth.
"The first half of 2020 has been transformational for Novacyt," said Chief Executive Officer Graham Mullis. "The company has rapidly established itself as one of the market leaders in COVID-19 PCR testing, with a significantly increased customer base, a recognised reputation for the performance of its products and established multiple significant strategic partnerships."
Novacyt shares were up 8.4% early Monday at 289.95 pence. The stock began 2020 at priced at just 14.00p.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 1.3% at 6,172.38
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Hang Seng: up 0.7% at 25,915.15
Nikkei 225: closed up 2.2% at 22,784.74
DJIA: closed up 1.4% at 26,075.30
S&P 500: closed up 1.1% at 3,185.04
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GBP: flat at USD1.2659 (USD1.2661)
EUR: up at USD1.1332 (USD1.1317)
Gold: up at USD1,806.50 per ounce (USD1,801.62)
Oil (Brent): soft at USD42.55 a barrel (USD42.72)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Monday's Key Economic Events still to come
none scheduled.
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Beauty salons, nail bars and tattoo shops are to open for the first time in four months as part of the latest relaxation of lockdown restrictions in England, PA reports. Spas, massage studios and physical therapy businesses will also be able to welcome customers again on Monday. But businesses will be required to meet coronavirus guidelines, and restrictions on treatments which involve work directly in front of the face will not be available. Government guidance states that face waxing, eyelash treatments, make-up application and facials should not be provided because of the greater risk of Covid-19 transmission. The relaxation comes as around 200 workers at a farm in Herefordshire were quarantined following an outbreak of coronavirus.
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The debate on mandating face coverings in shops in England continued, with UK Cabinet Office Minister Michael Gove saying they should not be made compulsory. He said that while the policy on mouth and nose coverings in public places was kept under review, he thought it was best to trust the public's "common sense". Yet on Friday, UK Prime Minister Boris Johnson had hinted that they may become compulsory in shops, saying he wanted to be "stricter" on insisting people wear them.
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There was a "significant" improvement in UK retail footfall in June, according to numbers posted on Monday, after the non-essential sector lifted shutters. According to Springboard's footfall monitor, footfall fell 57% annually in June, faring better than May, which had suffered a 73% slump. Springboard Marketing & Insights Director Diane Wehrle noted this was a "significant improvement". The UK lockdown eased during the month, allowing the non-essential retail sector to reopen in England on June 15. Wehrle added: "The reopening of non-essential retail stores in England on June 15 was the turning point which led to footfall across all UK retail destinations increasing by 40% week-on-week. This catapulted the overall UK footfall result from an average annual decline of 67% in the first two weeks to 50% for the remainder of the month." In high streets, footfall slumped 65% in June, shopping centres fared better, falling 62% and retail parks registered a 32% fall.
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The UK government pledged GBP705 million to prepare its borders for cutting ties with the EU on December 31, amid concern within Westminster that it is not ready. The money will fund new border posts, IT systems and 500 new staff to both ensure security and handle new customs controls after Britain leaves the EU's single market and customs union, the government said in a statement. Britain ended its EU membership on January 31, almost four years after the historic Brexit vote, but agreed a standstill transition period until the end of the year while it tries to negotiate a new trade deal with Brussels. Citing the disruption caused by the coronavirus outbreak, London has already said it will not immediately introduce checks on EU imports, instead delaying them until July.
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BROKER RATING CHANGES
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BANK OF AMERICA RAISES LEGAL & GENERAL GROUP TO 'BUY' ('NEUTRAL')
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JPMORGAN RESUMES JUPITER FUND MANAGEMENT WITH 'OVERWEIGHT' - TARGET 300 PENCE
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JEFFERIES RAISES ENQUEST ENERGY TO 'BUY' ('HOLD') - TARGET 17 (15) PENCE
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COMPANIES - FTSE 250
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Wizz Air Holdings said Wizz Air Abu Dhabi, which has been granted national airline status by the United Arab Emirates, will start operations on October 1. The airline will base two new Airbus A321neo aircraft in Abu Dhabi, with an initial network of six new routes to Alexandria, Athens, Kutaisi, Larnaca, Odesa and Yerevan. Wizz Air Abu Dhabi is a joint venture between state-owned ADQ and the low-cost Eastern Europe-focused airline. It is the Wizz Air's first airline established outside of Europe. Wizz Air said four additional, "ultra-modern" Airbus A321neo aircraft will be allocated in the first 6 months of operation, with the route network to be announced in due course. Wizz Air currently has five additional routes to Abu Dhabi on sale from Bucharest, Budapest, Cluj-Napoca, Katowice and Sofia.
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Centamin said it is on track to meet 2020 full-year guidance, with its production range narrowed to between 510,000 to 525,000 ounces of gold. The Egyptian miner had previously set production guidance in a range between 510,000 and 540,000 ounces of gold for 2020. Centamin said second-quarter output was up 11% to 130,994 ounces from 117,913 in the second quarter of 2019. Operations, supply chain and gold shipments so far have not been materially hurt by Covid-19, it said. "Today's results reflect a good first-half performance for 2020," CEO Martin Horgan said, adding: "Whilst we continue to actively manage the potential future impacts of Covid-19, we remain confident we are on track to meet guidance and have narrowed the production range to 510,000 to 525,000 ounces and kept cost guidance unchanged."
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Big Yellow Group said it has acquired a site at 60-70 The Highway, Wapping, London, adjacent to an existing store, for GBP18.6 million. The company said it plans a new-build self-storage centre on the newly acquired land. "This is a strategically located site on the fringes of Central London and continues our strategy of building large, high-quality stores as close to London's city centre as possible," said CEO James Gibson.
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Aberdeen Standard Investments has sold most of its shareholding in online clothing retailer Boohoo Group over allegations of poor working conditions in its supply chain, the Times reported late Friday. According to the newspaper, the asset manager has sold 27 million shares, equivalent to two-thirds of its stake. The Sunday Times previously had reported allegations that workers in Leicester's Jaswal Fashions factory making clothes for Boohoo brand Nasty Gal were being paid as little as GBP3.50 an hour and operating without social distancing measures in place. Boohoo, in response, on Wednesday last week had distanced itself from Jaswal Fashions and had said that while it has seen "non-compliance" with its code of conduct, it has not seen evidence of its suppliers paying workers GBP3.50 per hour. It also had launched an independent review of its UK supply chain. "Having spoken to Boohoo's management team a number of times this week in light of recent concerning allegations, we view their response as inadequate in scope, timeliness and gravity," Lesley Duncan, deputy head of UK Equities at Aberdeen Standard Investments, told the Times.
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COMPANIES - GLOBAL
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Semiconductor maker Analog Devices is in talks to buy peer Maxim Integrated Products for around USD20 billion, the Wall Street Journal reported on Sunday. A successful conclusion to talks would spell one of the largest mergers deals of the year. The two are discussing an all-stock deal that could be finalised as soon as Monday, the WSJ said citing people familiar with the matter, though the combination is not guaranteed and negotiations could still fall apart.
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Monday's Shareholder Meetings
Redcentric (re share issue)
Starcom
Fastforward Innovations
City of London Investment Group (re merger with Karpus Management)
Renalytix (re proposed Nasdaq dual listing)
Mitie Group (re rights issue)
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By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
