Anglo American's Share-Price Outlook is Improving

Anglo American's share-price outlook is brightening, says RBC Capital Markets following the miner's second-quarter production update. The statement was largely as expected, RBC says. Platinum-group metals and copper output topped RBC's estimates whereas iron ore, metallurgical coal and diamonds were slightly weaker, the bank says. "The better realized pricing, especially in iron ore and copper, will help consensus forecasts for H1," RBC analyst Tyler Broda says, adding that Anglo's shares have eased in the last few weeks and risk-reward is improving. "That said, we remain negative on the short-term outlook for the [sector] as a whole and cautious heading into the upcoming results. We maintain our sector-perform recommendation."

 
Companies News: 

Focusrite Sees FY 2021 Revenue, Profit Ahead of Market Views

Focusrite PLC said Tuesday that it expects its fiscal 2021 profit and revenue to exceed market forecasts, but cautioned of increasing supply-chain disruption and constraints due to the coronavirus pandemic.

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Corero Network Security to Report 1H Revenue Rise, Higher Order Intake

Corero Network Security PLC said Tuesday that it expects to report a 34% rise in revenue for the first half of the year and a higher order intake.

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Alliance Pharma 1H Revenue Rose; Sees FY Profit Meeting Market Views

Alliance Pharma PLC said Tuesday that revenue for the first half of the year rose on year and that it expects underlying pretax profit for the full-year to meet market expectations.

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Alliance Pharma 1H Revenue Rose; Sees FY Profit Meeting Market Views

Alliance Pharma PLC said Tuesday that revenue for the first half of the year rose on year and that it expects underlying pretax profit for the full-year to meet market expectations.

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Cloudcall 1H Revenue Rose; Sees Full Year on Track

Cloudcall Group PLC said Tuesday that revenue for the first half of 2021 rose, helped by a strong recovery in the recruitment sector, and said that it is progressing in line with its plans.

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NAHL Anticipates Lower Revenue, Higher Profit for 1H

NAHL Group PLC said Tuesday that it expects to report lower revenue and higher profit for the first half of the year.

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Brand Architekts 2H Net Sales Rose But Remain Down for FY 2021

Brand Architekts Group PLC said Tuesday that net sales for the second half of the year rose 9.5% but still fell overall for the year as the company suffered from lower footfall in the high street due to coronavirus-related restrictions and lockdowns.

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Dianomi 1H Trading Was Strong, on Course to Meet Full-Year Market Views

Dianomi PLC said Tuesday that its performance in the first half of 2021 has been strong, and that it is trading in line with market expectations for the full year.

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Audioboom 1H Pretax Loss Narrowed as Revenue Nearly Doubled

Audioboom Group PLC that pretax loss for the first half narrowed on higher revenue as its audiences grew.

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Eurocell Expects to Beat 2021 Profit Forecasts After Strong 1H

Eurocell PLC said Tuesday that it expects to beat current market expectations for full-year pretax profit after a stronger-than-anticipated first-half performance and an improvement in its outlook for the second half.

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TClarke Swung to 1H Profit, Maintains Interim Dividend

TClarke PLC on Tuesday reported a profit for the first half of the year and proposed a dividend in line with a year earlier.

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Time Out Names Chris Ohlund as Executive Vice Chairman

Time Out Group PLC said Tuesday that it has appointed Chris Ohlund executive vice chairman, effective immediately.

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Rotala Swung to 1H Pretax Profit

Rotala PLC said Tuesday that it swung to a pretax profit for the first half of fiscal 2021 as revenue rose, and that trading for the period was underpinned by subsidies from the U.K.'s Department for Transport.

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Papillon Holdings Raises GBP5.5 Mln Via Share Placing

Papillon Holdings PLC said Tuesday that it has raised around 5.5 million pounds ($7.5 million) via a share issue and will use the money to build production at the Kilimapesa gold mine and for future growth.

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BrandShield Systems Secures New Contract

BrandShield Systems PLC said Tuesday that it has secured a contract in the personal-care industry.

 
Market Talk: 

Arbuthnot Banking Maintained Good Momentum in 1H

1021 GMT - Arbuthnot Banking's results for the first half of fiscal 2021 prove that it is keeping up its momentum, Numis says. The commercial bank remains well-placed to benefit from an anticipated healthy trend in U.K. small-and-medium enterprise lending in coming years, the U.K. brokerage adds. Numis slightly raises its full-year pretax profit forecasts to GBP5 million from GBP4.9 million, reflecting mainly higher assets under management, and leaves its 1,200-pence-a-share target price on the stock unchanged. Numis has a buy recommendation on the stock.

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easyJet Still Faces Negative Factors Despite Cost Cutting

1011 GMT - Having raced to cut costs in the business, easyJet is shifting attention to customers in continental Europe where there are more opportunities to make money, Russ Mould at AJ Bell says. Although credit must be given for it being able to shift a lot of moving parts, it must still cope with two prevailing negative factors, Mould says. Customers are booking a lot closer to the fly date, and it has only a fraction of its seats available to book as demand is still being mixed toward flying due to changing government restrictions, he says. "A lot can change in the next six to eight weeks, but every day counts for an industry that is still losing a lot of money," Mould says.

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Jadestone Energy Offers Sector-Leading Cashflow Netback

0938 GMT - Jadestone Energy has the second highest cashflow netback among the group of oil peers covered by Jefferies, according to the bank. With the company about to close deals to acquire assets in Malaysia and New Zealand, Jefferies estimates Jadestone can obtain a $15.9-per-barrel netback in 2022, assuming Brent is at $65. This is only topped by EnQuest PLC. Netback expresses profit per barrel of oil, accounting for all cash costs. Jefferies has a buy rating on Jadestone, and raises its target price to 118 pence from 106 pence with completion of the Malaysian deal now expected on July 30.

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Inflation Surge in the UK Isn't Expected to Persist

0921 GMT - CPI inflation in the U.K. is set to increase 4% by the end of the year compared with the current annual rate of 2.5%, but is expected to fall back below 2% in 2022, Paul Dales, chief U.K. economist at Capital Economics, says. "Our forecast that Covid-19 won't significantly reduce potential supply means that the economy can run a bit hotter for longer without generating the persistent rise in inflation that would require monetary policy to be tightened," he says. The inflation spike isn't likely to lead to higher pay growth and inflation expectations, so the Bank of England won't tighten monetary policy until mid-2023, a year later than the markets expect, Dales says.

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Anglo American's 2Q Production Looks Mixed

0917 GMT - Anglo American seems to be operating relatively well, Jefferies says, reiterating its buy rating on the miner after the company's latest production report. Anglo reported mixed 2Q production, with diamonds, met coal, and nickel volumes lower than the bank expected while copper, iron ore, and PGMs beat its expectations. Volumes overall increased by 20% as capacity rebounded following the initial impact of lockdowns. Anglo has been operating at 95% of full capacity on average as restrictions ease. Anglo lowered the high end of its full-year guidance range for diamonds, PGMs and iron ore and raised the low end of its guidance for copper. Risks to its production outlook include Covid-19, unrest in South Africa, and power availability in South Africa.

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Apollo Cools Morrisons Bidding War, But Other Suitors Could Emerge

0809 GMT - Apollo Global Management has taken the heat out of a potential bidding war for Wm. Morrison Supermarkets, but the U.K. grocer could still attract new suitors, Hargreaves Lansdown analyst Sophie Lund-Yates says. "Increasing private equity activity in London in recent months means there could be other raised arms in the bidding hall, but for now, Morrisons is back to courting a single suitor," Lund-Yates says. The New York-based private-equity group is in talks with a group of investors led by SoftBank-backed Fortress Investment to be part of the consortium that agreed to buy Morrisons earlier this month, which suggests that their GBP6.3 billion cash offer is less likely to get pushed upward, Lund-Yates says.

 

Contact: London NewsPlus, Dow Jones Newswires; paul.larkins@wsj.com

(END) Dow Jones Newswires

July 20, 2021 06:48 ET (10:48 GMT)

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