LONDON (Alliance News) - Stock prices in London are seen opening higher on Thursday as steel maker
Evraz reported a strong interim performance, while in the FTSE 250 brick maker
Ibstock delivered on its promise of an extra shareholder return. IG futures indicate the FTSE 100 index is to open 11.70 points higher at 7,745.10. The FTSE 100 ended up 0.8%, or 58.17 points, at 7,776.65 on Wednesday.In early UK company news, FTSE 100 miner
BHP Billiton has reached an agreement to settle the class action complaint filed in the US District Court of the Southern District of New York on behalf of purchasers of American Depositary Receipts of BHP Billiton Ltd and BHP Billiton PLC between September 2014 and November 2015 in relation to the Samarco dam failure in November 2015.As per the terms of the agreement, BHP has agreed to pay the plaintiffs USD50 million, with no admission of liability. The agreement is subject to approval by the District Court.Elsewhere in the large cap index,
Randgold Resources reported a fall in second quarter pretax profit, the figure declining to USD74.3 million from USD87.3 million a year prior, as costs rose. Revenue for the three months to June increased to USD283.7 million from USD273.3 million, with gold sales rising 5% quarter-on-quarter to USD411.5 million. Cash costs were 4% higher on the first quarter and 15% higher year-on-year due to higher throughput at several mines, while total cash costs per ounce of gold rose 21% year-on-year. Randgold's gold output for the quarter was 313,302 ounces, 9% higher quarter-on-quarter.The company said the results show its ability "to deal with multiple challenges", such as work stoppages, negotiations over the Democratic Republic of the Congo's new mining code, as well as a permitting delay. Russian firm
Evraz reported "strong" cash flow for the six months to June, rising to USD661 million from USD549 million. Revenue increased 24% to USD6.34 million for the period, while pretax profit soared to USD1.54 billion from USD294 million due to both the increase in revenue and a foreign exchange gain. Earnings before interest, tax, depreciation, and amortisation increased 66% year-on-year to USD1.15 billion, with the Ebitda margin climbing to 30% from 23% on the back of higher vanadium, steel, and coal prices as well as lower costs. Total debt has fallen by some USD646 million to USD4.79 billion, while cost savings of USD117 million were made in the period due to productivity improvements and cost-cutting, the company said.Evraz is paying a 40 US cent interim dividend, compared to 30 cents a year prior, when it restored its interim payout. Looking ahead, Evraz said it was pleased with its performance, and it expects the market to remain positive for the rest of 2018 despite possible price corrections. Travel and tourism firm
TUI Group reported third-quarter group profit attributable to shareholders surged to EUR146.3 million from EUR47.7 million in the prior-year quarter.Underlying earnings before interest, tax, and amortisation declined 13% to EUR193.4 million, while third-quarter revenue grew 5% to EUR5.02 billion.Looking ahead, TUI said based on the positive third-quarter results and current trading, it expects for its full year to deliver at least 10% growth in underlying Ebita and around 3% growth in revenue, excluding cost inflation relating to currency movements.Insurer
Legal & General reported a rise in operating profit of 5% to GBP909 million for the six months to June, with five of its six businesses increasing operating profit, but pretax profit fell 19% to GBP942 million. Legal & General's return on equity was 20.3% for the period from 26.7%, while its Solvency II coverage ratio stood at 193% from 186%. The company is paying an interim dividend of 4.60 pence per share, compared to 4.30p a year prior.Overall, Legal & General said it was a "consistent, positive" result, and it looks forward to an "exceptionally busy" second half, with the company well positioned going ahead. In the midcap FTSE 250, brickmaker
Ibstock confirmed it is paying a special dividend alongside its normal interim payout, following a strong six months to June of cash generation and a positive market.Ibstock is paying a supplementary dividend of 6.5p for the period, alongside an interim dividend of 3.0p compared to 2.6p a year prior.The company had said at the time of its 2017 results in 2017 it was mulling extra shareholder returns and that it would be similar to the final dividend of that year, which was 6.5p.Revenue nudged up 0.7% to GBP229.9 million, while pretax profit was up 31% to GBP50.9 million but adjusted Ebitda fell 2.2% to GBP58.4 million due to previously cited bad weather and higher energy costs. Ibstock said brick demand in the UK was strong in the half, but maintenance spending in brick making assets will hit short-term financial performance.However, the market remains strong, it said, and it is well placed for a good second half.
Card Factory reported total first half sales growth, for the six months to July 31, of 3.2%, but like-for-like sales fell 0.2% due to the weak consumer environment and "extreme" weather.This like-for-like sales growth compares to the 3.1% recorded in the same period a year prior. In its Getting Personal business, sales fell 8.5% year-on-year. The first half a year ago had reported 5% sales growth on the year before that. Due to weather, and the uncertain UK consumer environment, Card Factory expects underlying Ebitda for its year ending January to be between GBP89 million and GBP91 million, with the figure in its last financial year GBP94.0 million. However, it does expect a return of surplus cash towards the end of its year of between 5p and 10p a share. Estate agent
Savills reported 2% revenue growth for the six months to June, rising 5% at constant currency, to GBP727.8 million. However, underlying pretax profit fell 12%, and 10% constant currency, to GBP42.4 million, with the reported figure falling 18% to GBP26.7 million. Savills is paying an interim dividend of 4.8p per share, from the 4.65p it paid a year before. The company said full-year expectations remain unchanged, and that is has been "resilient" in the face of difficult market conditions with a good pipeline for the second half of the year. Property firm
Derwent London increased its net rental income for the six months to June to GBP80.6 million, a 1.6% rise. Derwent London's net asset value fell 0.1% after dividends to 3,713p from December's figure, while it has raised its interim dividend 10% to 19.10p. New lettings rose 8.2% on December to GBP8.4 million, and Derwent London's portfolio value has risen 1.3% to GBP5.0 billion. Derwent London is confident in can grow earnings over the medium term with London's occupier demand "robust".
Cineworld's revenue for the first half rose to USD1.86 billion from USD528.7 million, with the results including its Regal Entertainment acquisition in February.Pretax profit for the six months to June more than doubled to USD160.2 million from USD60.5 million, while adjusted pretax profit has likewise soared to USD152.4 million from USD54 million.Admissions for the period rose 4.9% on a pro forma basis, with pro forma revenue up 11% to USD2.46 billion and adjusted Ebitda up 14% pro forma to USD553.8 million. Cineworld is paying an interim dividend of 4.85 US cents per share, compared to 6p a year prior - the company has switched to reporting in dollars following the Regal takeover.Elsewhere,
AA said it is on track to deliver its Ebitda guidance despite poor weather in the six months to July. Paid memberships have fallen 1% to 3.3 million, as expected, as AA's retention rate decreased, hit by higher competitiveness and regulation. AA's Insurance business has done well, with motor policies rising 7% year-on-year, while cash generation is strong, it said. Turning to the US-China trade spat, China will impose retaliatory tariffs on USD16 billion worth of US goods starting on August 23, the Commerce Ministry said on Wednesday.The announcement came hours after the US announced it will impose 25% duties on the same amount of Chinese goods, starting on the same date.China's 25% tariffs will apply to US products such as coal, gasoline, vehicles, motorcycles and medical equipment.It is the second round of duties imposed by the countries as Washington and Beijing exchange tit-for-tat measures in an escalating trade war.In China, the Shanghai Composite closed 1.8% higher on Thursday.Consumer prices in China rose 2.1% on year in July, the National Bureau of Statistics said on Thursday. That exceeded expectations for 2.0% and was up from 1.9% in June. On a monthly basis, CPI added 0.3% after easing 0.1% in June.The bureau also said producer prices jumped an annual 4.6% - beating forecasts for 4.5% and down from 4.7% in the previous month.In other political news, the US announced fresh sanctions on Moscow on Wednesday, citing Russia's responsibility for an assassination attempt on a former double agent, Sergei Skripal and his daughter in an English city earlier this year with a nerve agent.The sanctions, which will likely come into effect on August 22, would affect a range of security and defence goods. Certain exceptions would be made for commercial aviation and space flight materials.The State Department said the US had determined Russia had used weapons banned under a chemical and biological weapons act, a law which mandates the imposition of sanctions. The law has been used twice before, on Syria and North Korea.Britain has long blamed Russia for the attack, though Moscow denies involvement. The US had previously expelled Russian diplomats in a sign of solidarity with Britain.The pound was quoted at USD1.2874 early Thursday compared to USD1.2888 at the London equities close Wednesday, as sterling slips below the USD1.29 mark for the first time since last September on fears of a no-deal Brexit. The euro stood at USD1.1604 early Thursday, down from USD1.1620 at the European equities close Wednesday.Stocks in New York were mixed at the London equities close Wednesday. The DJIA was down 0.1%, the S&P 500 index up 0.1% and the Nasdaq Composite up 0.1%.Coming up in US economic news on Thursday is July PPI at 1330 BST, with consensus expecting producer price inflation to remain flat at 3.4%, CMC Markets UK's Madden said. The Japanese Nikkei 225 index closed 0.2% lower Thursday, while the Hang Seng index in Hong Kong is up 1.2%.
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