Last checked at 
(Alliance News) - Phoenix Group Holdings on Monday reported a "record" first half for cash generation, lending it confidence for the remainder of 2022.
"Phoenix delivered against all of its key objectives in H1, with a record set of financial results and clear strategic progress made. We have delivered further organic growth and also announced the cash funded acquisition of Sun Life of Canada UK. This will support us in delivering a dividend that is 'sustainable and grows over time'," the London-based insurance services provider said.
Phoenix's total revenue climbed 28% to GBP2.69 billion in the first half of 2022 from GBP2.10 billion a year earlier.
However, its pretax loss widened to GBP1.65 billion from GBP454 million. Its bottom line was hit by a GBP31.61 billion net investment loss, swinging from income of GBP8.11 billion a year earlier.
Phoenix hailed its "record" first half cash generation of GBP950 million, up from GBP872 million a year earlier.
It is now "confident of delivering at the top-end of our GBP1.3 billion to GBP1.4 billion target range for the year".
The FTSE 100 listing lifted its interim payout to 24.8 pence per share from 24.1p.
"Ahead of the 2022 FY results, the board will assess if organic business growth can fund a further sustainable dividend increase, in addition to the 2.5% inorganic dividend increase proposed for the Sun Life of Canada UK acquisition," it said.
Shares were up 1.1% in early dealings on Monday.
Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: up 0.5% at 7,534.32
----------
Hang Seng: down 0.5% at 20,084.32
Nikkei 225: closed up 1.1% at 28,871.78
S&P/ASX 200: closed up 0.5% at 7,064.30
----------
DJIA: closed up 424.38 points, or 1.3%, at 33,761.05
S&P 500: closed up 1.7%, at 4,280.15
Nasdaq Composite: closed up 2.1% at 13,047.19
----------
EUR: down at USD1.0235 (USD1.0248)
GBP: down at USD1.2106 (USD1.2121)
USD: down at JPY133.32 (JPY133.63)
Gold: down at USD1,791.40 per ounce (USD1,797.13)
Oil (Brent): down at USD97.33 a barrel (USD97.91)
(changes since previous London equities close)
----------
ECONOMICS AND GENERAL
----------
Monday's key economic events still to come
1100 BST Ireland goods exports and imports
0830 EDT US manufacturing survey
1000 EDT US NAHB housing market index
Italy Assumption Day holiday. Financial markets closed.
France, Germany, Spain and Switzerland - Assumption Day. Financial markets open.
----------
The price of UK properties coming to market fell in August for the first time this year, according to Rightmove's latest house price index, but the move could be seasonal rather than reflective of a broader slowdown. UK house prices fell 1.3% month-on-month in August to stand at an average asking price of GBP365,173, reversing July's 0.4% rise. The last time average asking prices declined was in December, with a fall of 0.7%. On an annual basis, house price growth slowed to 8.2% in August from 9.3% the month before. Rightmove highlighted that prices tend to drop in August, with this 1.3% monthly decline on par with the August average over the past ten years. "Summer holidays are taking priority and some new sellers are pricing more competitively to secure a buyer quickly, to beat the lengthy average time to completion and move home before Christmas," it explained.
----------
Factory output and retail sales in China edged up in July but were weaker than analysts' expectations, official data showed, as a Covid-19 resurgence and property market jitters cast a pall over hopes for a stronger economic recovery. The world's second-biggest economy saw a bounce in business activity as some coronavirus restrictions eased in June, but the boost is fading and Beijing remains welded to a zero-Covid policy of snap lockdowns and long quarantines, which has battered sentiment. But for July, China's industrial production rose 3.8% on-year, down from a 3.9% jump in June, the National Bureau of Statistics said Monday. Retail sales grew at a slower-than-expected 2.7% from a year ago, down from 3.1% in June, while the urban unemployment rate fell to 5.4%, the NBS said. "The risk of stagflation in the world economy is rising, and the foundation for domestic economic recovery is not yet solid," the NBS warned in a statement.
----------
Japan's economy expanded in the three months to June, official data showed, after the government lifted Covid-19 curbs on businesses. The world's third-largest economy grew 0.5% quarter-on-quarter due to stronger consumption and capital investment, but the rise was below market expectations of 0.7%. While the country never imposed strict stay-at-home orders during the pandemic, the government in March removed virus restrictions primarily targeting business opening hours. Inbound tourism remains limited to group tours, however, and the economy is facing headwinds – from the energy price crisis to fears of a global recession fuelled by biting inflation.
----------
BROKER RATING CHANGES
----------
JPMorgan cuts Auto Trader Group to 'underweight' (neutral) - price target 596 pence
----------
JPMorgan cuts Auction Technology to 'neutral' (overweight) - price target 1118 pence
----------
JPMorgan cuts Trainline to 'neutral' (overweight) - price target 420 pence
----------
COMPANIES - FTSE 100
----------
AstraZeneca said its Enhertu drug met its primary endpoint in a breast cancer trial. Enhertu showed a "meaningful improvement" in progression-free survival, the amount of time a patient lives without the disease getting worse. The trial involved sufferers of human epidermal growth factor receptor 2-positive unresectable and/or metastatic breast cancer. Participants had been previously treated with trastuzumab emtansine, an existing cancer therapy. Unresectable is when the disease cannot be removed through surgery, and metastatic is when it spreads to distant parts of the body.
----------
COMPANIES - SMALL CAP
----------
Coal miner Thungela hailed a record first half performance. Revenue in the six months to June 30 more than doubled to ZAR26.18 billion, about GBP1.33 billion, from ZAR10.05 billion. It declared a ZAR60 interim dividend per share, having not declared one a year earlier. "Demand for affordable energy sources such as thermal coal escalated amid the energy security crisis which was exacerbated by the escalation of the Russia-Ukraine conflict. Coupled with supply constraints in major coal producing regions, this resulted in the price of thermal coal increasing to unprecedented levels," Thungela said. "Notwithstanding the impact of the rail performance on export equity sales volumes, we achieved record adjusted operating free cash flow of ZAR8.9 billion." Thungela was hived off from parent Anglo American last year in June.
----------
Digital 9 Infrastructure set out plans to move to the Premium Segment of the Main Market, qualifying it for FTSE index inclusion. The digital infrastructure investor said: "As the company grows, the board believes that DGI9 will benefit over time from the migration with an increase of its profile as an investment company, diversification of the company's share register with access to blue chip UK and international investors as well as from potential FTSE index inclusion. The migration is subject to the company meeting the relevant eligibility criteria under the listing rules and approval by the FCA. The company will provide an update in due course." Digital 9 currently has a market capitalisation of GBP972.5 million, ahead of roughly 65 FTSE 250 constituents, including the likes of Currys, Moonpig, JD Wetherspoon, Aston Martin and Greencore.
----------
Next Fifteen Communications said its acquisition of advertising agency M&C Saatchi has received two key regulatory approvals. It has received approvals under the UK National Security & Investment Act 2021 and the Australian foreign investment regulatory framework. Backing from the Committee on Foreign Investment in the US remains. Next Fifteen expects this to be received early in the fourth quarter.
----------
Natural extracts and ingredients supplier Treatt warned on annual profit, amid accelerating inflation, weaker margins due to foreign exchange volatility and Covid-19-hit subsidiary in China. Treatt now expects pretax profit before exceptional items to land between GBP15.0 million and GBP15.3 million for the full-year. In its results for the half-year ended March 31, it said it was on track to deliver profit in line with consensus of GBP21.7 million.
----------
Joules said it has appointed Jonathon Brown as its next chief executive, replacing Nick Jones. Jones back in May said he would step down as the country lifestyle retailer reported a disappointing trading performance. Brown will join the company as CEO designate on September 7 and take up the role on September 30. He was mostly recently CEO of Compare the Market, part of BGL Group, where he "led the business through a successful period of strategic transformation and growth". "Whilst there have been some headwinds in the past year, I am very excited by the business' future opportunities," said Brown. Joules last week said it was in discussions with FTSE 100-listed retailer Next about a potential equity investment. The move, if it goes ahead, will see Next inject about GBP15 million into Joules, noting the price will be "at no less than Joules' current market price".
----------
COMPANIES - GLOBAL
----------
Saudi Arabian Oil Co unveiled record profit of USD48.4 billion in the second quarter of 2022, after Russia's war in Ukraine and a post-pandemic surge in demand sent crude prices soaring. Net income leapt 90% year-on-year for the world's biggest oil producer, known as Saudi Aramco, which clocked its second straight quarterly record after announcing USD39.5 billion for Q1. "While global market volatility and economic uncertainty remain, events during the first half of this year support our view that ongoing investment in our industry is essential – both to help ensure markets remain well supplied and to facilitate an orderly energy transition," said Aramco CEO Amin Nasser. "In fact, we expect oil demand to continue to grow for the rest of the decade, despite downward economic pressures on short-term global forecasts." Net income rose 23% from Q1 in "strong market conditions", Aramco said. Half-year profits were USD87.9 billion, up from USD47.2 billion for the same period of 2021. Aramco paid an USD18.8 billion dividend in Q2 and will disburse the same amount in Q3.
----------
Monday's shareholder meetings
Ascent Resources PLC - GM re annual report
Corcel PLC - AGM
Coro Energy PLC- GM re annual report
Forward Partners Group PLC - AGM
Ince Group PLC - GM re fundraise
Red Rock Resources PLC - GM re convertible loans
Schroders PLC - GM re dual class share structure
----------
By Lucy Heming; lucyheming@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
