The FTSE closed higher on Tuesday, boosted by gains from
Thungela Resources Ltd., Intermediate Capital Group PLC and Flutter
Entertainment PLC despite the uncertainty regarding a potential
delay to the final lifting of England's Covid-19 lockdown, which
was due to take place on June 21. "Financial conditions remain
tighter in Europe than the U.S., which should continue to weigh on
the greenback, but as ever investors are determined to keep an eye
on inflation, in the hope that a spark can be found to reignite the
gains of earlier in the year," IG says.
Companies News:
TinyBuild Swung to 2020 Pretax Profit
London-listed videogames developer tinyBuild Inc. said Tuesday
that it swung to pretax profit for 2020 thanks to new releases and
robust back-catalogue sales, as it acquired DogHelm for up to $6.5
million in cash and shares.
---
Xpediator Sees 2021 Results Ahead of Views After Strong
5-Month
Xpediator PLC said Tuesday that it expects to beat market
forecasts for 2021 as the business saw strong demand during the
first five months of the year.
---
Driver Group 1H Pretax Profit Fell
Driver Group PLC said on Tuesday that pretax profit and revenue
fell for the first half of fiscal 2021, and that the board expects
the past 12 months' constraints on routine business development
will start to abate.
---
Intercede Group FY 2021 Profit Jumped on Higher Revenue
Intercede Group PLC said Tuesday that its pretax profit for
fiscal 2021 nearly doubled, thanks to higher revenue.
---
Oncimmune Sees Higher FY 2021 Revenue
Oncimmune Holdings PLC said Tuesday that it expects to higher
revenue for fiscal 2021 in line with market forecasts, and that it
anticipates a strong start to fiscal 2022.
---
VP Swung to FY 2021 Pretax Loss; Sees Better Prospects for FY
2022
VP PLC said Tuesday that it swung to a pretax loss for fiscal
2021 as revenue fell and that it is excited about the prospects for
the coming year against a positive market backdrop.
---
Cornerstone 2020 Pretax Loss Widened
Cornerstone FS PLC said Tuesday that its 2020 pretax loss
widened after booking higher costs and that since the start of the
new year its trading volumes have increased and its customer base
expanded.
---
Itaconix Shares Fall on Weak Personal-Care Unit
Shares in Itaconix PLC fell Tuesday after the company said its
personal-care business delivered a weak performance in the first
five months of the year.
---
Restaurant Group Chairwoman Debbie Hewitt to Leave at
Year-End
Restaurant Group PLC said Tuesday that Chairwoman Debbie Hewitt
will leave the company on Dec. 31 to join the English Football
Association as its new chairwoman.
---
RWS Holdings 1H Pretax Profit Fell; CEO to Step Down
RWS Holdings PLC said Tuesday that pretax profit for the first
half of fiscal 2021 fell on costs related to its merger with SDL
and exceptional items, and that Chief Executive Officer Richard
Thompson will step down.
---
Software Company Itim Group Plans AIM Float
Software company Itim Group PLC, which provides technology to
store-based retailers, said Tuesday that it intends to seek
admission to trade on London's junior AIM market, and that it plans
to raise up to 12 million pounds ($17 million).
---
Activist Investor Cevian Capital Now Holds 4.95% Stake in
Aviva
Activist investor Cevian Capital Partners Ltd. on Tuesday said
that it now owns 4.95% of Aviva PLC's issued share capital, and
that the London-listed insurance company should be able to return
around 5 billion pounds ($7.09 billion) of excess capital to
shareholders next year.
---
Cordiant Digital Infrastructure Raises GBP185 Mln via C Share
Placing
Cordiant Digital Infrastructure Ltd. said Tuesday that it has
raised 185 million pounds ($262.3 million) via a C share placing
and will invest the money in line with its policy.
Market Talk:
RWS Holdings' Synergies with SDL Could Exceed Increased
Estimate
1319 GMT - RWS Holdings identified cost synergies from its
combination with SDL of GBP33 million, up from GBP15 million
originally indicated, but the final outcome could exceed that
revised estimate, Davy Research says. "We continue to believe that
this number could be beaten and could be in the GBP40 million-GBP50
million range," Davy says. That would more than double the Ebita
estimate for standalone SDL, Davy says. Higher synergy expectations
bode well for future acquisitions by the U.K. language-services
provider, Davy says. RWS completed its GBP854 million all-share
acquisition of SDL in November.
---
Aveva's Strategic Plan Could Boost Shares
1300 GMT - Aveva Group is likely to outline its strategy in a
capital-markets day due July 1, potentially driving the
industrial-software firm's shares, says J.P. Morgan Cazenove. "We
think the new CEO, Peter Herweck, will take the opportunity to
provide his vision and long-term strategic plan for the combined
entity of Aveva and OSIsoft," says JPM analyst Stacy Pollard. "We
believe the company could give long-term targets of high-single
digit revenue growth and adjusted EBIT margins to reach 35% within
five years. We reiterate our overweight rating and believe the CMD
could be a positive catalyst for the shares."
---
M&G Could Return Cash to Guard Against Bid Approaches
1240 GMT - M&G could return cash to shareholders to help it
fend off possible takeover bids, says Bank of America. BoA cuts its
recommendation on the asset manager to neutral from buy after a
share-price rally, though it keeps its 260 pence price target.
M&G has been coy about capital returns, despite having
significant excess cash, BoA says. "We think recent press
commentary that Schroders considered an approach for M&G could
remind management that prudence is fair, but over-prudence can lead
to becoming an M&A target," BoA analysts say. "This could
encourage management to be more open. We forecast GBP500 million of
buybacks, starting with a GBP100M buyback in 2022." M&G shares,
worth about 195p in January, drop 2% to 244p.
---
Intermediate Capital's Fundraising Seen Driving Upgrades
1222 GMT - As Intermediate Capital gets larger its growth
opportunity has increased and higher expectations for future
fundraising confirm the trend towards alternative assets, Peel Hunt
says. The asset manager occupies a prime position in a structural
growth market and fiscal 2021's pretax profit of GBP509.5 million
beat consensus by 60%, the U.K. brokerage says. Although this was
mostly driven by investment returns in its Investment Company, the
Fund Management Company, its other segment, also exceeded
estimates, so improved future funding guidance of $40 billion
should drive further upgrades, the broker says. "Growth momentum
remains strong and seems unlikely to falter any time soon," the
broker says. Peel Hunt has an add rating on the stock and a 1,777
pence target price.
---
Paragon Banking Shares Surge After Upbeat 1H
1142 GMT - Shares in Paragon Banking Group jump 11% to 571 pence
after the lender reported higher first-half pretax profit and
declared an interim dividend and a share-buyback program.
Underlying pretax profit topped market expectations, the company
had a good start to the year, the loan book continued to
demonstrate high-quality underwriting and low arrears and capital
remained strong, says Panmure Gordon, which has a buy rating on the
stock. "We view all of this as supportive of the investment case,"
its analysts say. "We unwind some caution in the provision and
increase our price target to 621 pence."
---
Aviva, Activist Investor Seem to Agree on Many Things
1109 GMT - The new owner of 4.95% of Aviva's issued share
capital, Cevian Capital, believes the insurance company could do
more and faster to release more cash and generate further capital
appreciation, says AJ Bell's Russ Mould. The poor long-term
performance of Aviva's shares can hardly be blamed on CEO Amanda
Blanc, which would explain why the activist investor isn't asking
for a change of leadership or a board seat, Mould says. Cevian
"appears to be taking a more 'suggestivist' stance, since in many
ways it and Aviva seem to be in agreement over what to be done,"
Mould adds. Shares are up 3% at 423.00 pence.
---
Intermediate Capital's Strong FY 2021 Results Should Lead to
Consensus Upgrades
1001 GMT - Intermediate Capital Group issued a strong set of
results for fiscal 2021, with outperformance once again on the
fundraising side and beats for both the Fund Management Company and
the Investment Company segments, Citi says. FMC's pretax profit for
the second half of the year rose 25% to GBP112.5 million and was
17% higher than consensus, while the Investment Company's 2H pretax
profit came in at GBP202.4 million, well ahead of consensus of
GBP28.0 million. Although fundraising for fiscal years 2022 and
2023 is in-line with the asset manager's $40 billion new guidance,
Citi expects to see consensus upgrades on the back of the strong
results and an earlier-than-expected fundraise by the Europe Fund
VIII, which held its first close in April.
---
BAT's Vaping Fortunes May Be Turning a Corner
0939 GMT - Shares in British American Tobacco rise 1.7% after
the cigarette maker raised its full-year revenue guidance. While
traditional tobacco companies have faced pressure for failing to
achieve growth expectations for next-generation products such as
vaping, the criticism is now looking as if it may have been too
harsh, AJ Bell says. "Of note, BAT has upgraded its earnings
guidance after saying smokers continue to switch to less harmful
alternatives. The company will be hoping customers stay loyal once
it has hooked them in," says AJ Bell's investment director Russ
Mould.
Contact: London NewsPlus, Dow Jones Newswires;
+44-20-7842-931
(END) Dow Jones Newswires
June 08, 2021 12:35 ET (16:35 GMT)
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