FTSE 100 Closes Down 0.2% as Miners Offset Ocado, -2-

Velocity Composites' Shares Fall on Lower FY 2023 Revenue Guidance After Pact Delay

Shares of Velocity Composites fell as much as 29% on Wednesday after the company said that it expects to report a reduced fiscal 2023 revenue and an Ebitda loss due to the delay in starting an agreement that was announced last December.

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Biome Technologies Says 2023 in Line With Views as 2Q, 1H Revenue Up

Biome Technologies said Wednesday that its full-year views are in line with current market expectations after revenue for the first half and second quarter rose.

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NAHL Expects to Meet Full-Year Market Views After In-Line 1H Revenue, Profit

NAHL said Wednesday that its expects full-year results to meet market views after in-line revenue and profit in the first half of the year.

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EKF Diagnostics 1H Revenue Fell; Sees Margin Improvement Ahead

EKF Diagnostics Holdings said Wednesday that revenue fell in first half of 2023, in line with its expectations, but that it expects margin improvements in the second half.

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Rio Tinto First-Half Earnings, Dividend Fall on Weaker Commodity Prices -- Update

Mining giant Rio Tinto reported a 43% drop in first-half net profit and pared its payout to shareholders, reflecting a fall in commodity prices as China's economic recovery faltered.

MARKET TALK:

Ecora Resources' 1H Portfolio Income Drop Seen as Expected

1006 GMT - Ecora Resources' 1H portfolio income fell as expected, but the delay of certain volumes reduces the 2H forecast, RBC Capital Markets analyst Tyler Broda and Laura Chan write in a note. Still, "we continue to see Ecora as an undervalued exposure to future facing commodities and re-iterate our outperform recommendation," they say. The commodities-focused royalty company's first-half portfolio contribution of $44.3 million broadly matched expectations, while net debt of $43 million came in line with forecasts, the analysts say. However, the changed timing of volumes from Kestrel and Voisey's Bay mines drive a reduction to 2H portfolio income forecasts, the analysts say. RBC lowers its price target on the stock to 220 pence from 230 pence. Shares are down 1% at 117.60 pence. ([e-mail])

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GSK Delivered Strong 2Q But Investors Will Want More From the Pipeline

0951 GMT - GSK delivered a crowd-pleasing second-quarter performance bolstered by strong sales of both its shingle vaccine and HIV medicines, but there are still big questions for investors to ponder, AJ Bell says. The British pharmaceutical giant's core business might be delivering but a drugmaker's real value is found in its pipeline, and there is nothing in this set of results to set pulses racing, AJ Bell's head of financial analysis Danni Hewson says in a research note. "It's only been a year since it split from its consumer business allowing it to focus in on product development and investors appear to have been mollified to a degree by strong sales and a decent near-term outlook, but they will want more than more of the same," Hewson says. Shares are up 0.7% at 1,403.0 pence. ([e-mail])

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Heathrow's Debt Levels Point to Operational Costs Staying Under Pressure

0953 GMT - Although Heathrow Airport reported a rise in 1H revenue as passenger demand rose, its performance is expected to improve in 2023 compared to 2022, Third Bridge analyst Olly Anibaba says in a note. Still the airport's debt levels mean that operational costs, which rose 38% to GBP196 million in 1H, will remain under pressure as 2H wage inflation pressures are expected to rise and contribute the largest to its cost base, Anibaba says. Cancelling the security staff's strike is a relief but pay negotiations are continuing and the airport still faces outstanding issues which need to be resolved with the unions, Anibaba says. "Despite offering a 10% pay rise, Heathrow still faces complexities in achieving pay equality across the board," Anibaba says. ([e-mail])

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Fresnillo Could See Downward Revision to Earnings on Higher Cost Guidance

0944 GMT - Fresnillo had a strong operational performance in 2Q with a solid recovery in silver production, but cost inflation was higher than expected, which could prompt downward consensus revisions, Citi analysts write in a research note. Silver production rose 13%, 6% ahead of the U.S. bank's estimates, with the recovery driven by a solid performance at the Juanicipio mine. The Mexican precious metals miner had guided for a cost inflation impact for 1H of $152 million vs. Citi's expected $80 million. "Going into the 1H results next week, we see downwards revision to consensus Ebitda-estimates, on account of cost impact guidance by the company," the analysts say. Citi rates the stock buy with a 1,050-pence price target. Shares are down 1.1% at 624.80 pence. ([e-mail])

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Centamin's 1H Consensus Beat Boosted by Falling Oil Prices

0929 GMT - Centamin's 1H performance, which beat consensus estimates, was boosted by declining oil prices and higher production, RBC Capital Markets analysts Marina Calero and Tyler Broda write in a research note. "The decline in oil prices and higher production have helped all-in sustaining costs to fall 15% year-on-year yet the recent acceleration in oil prices will likely impact costs in the second half," they say. Additionally, the gold miner's hedging program is viewed as a positive, as it should allow the company to keep the upside to gold prices while protecting free cash flow and dividends, the analysts say. RBC keeps an outperform rating and a 150-pence price target on the stock. Shares are up 5.3% at 98.50 pence. ([e-mail])

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British American Tobacco's 1H Tops Hopes, Shares Gain

0921 GMT - British American Tobacco's first-half results topped expectations, driven by the company's new products such as e-cigarettes, Barclays says. BAT's so-called "new generation products" are now close to break-even and on track to achieve profitability by 2024, Barclays says. "We believe BAT needs to establish the narrative on e-cigarettes and should also clearly articulate the break-even point and incremental profitability associated with NGPs by category," Barclays analysts say in a note. "The stock is down [about] 20% [so far this year] and strong NGP performance should be received well." Shares, on which Barclays has an overweight recommendation and 3300 pence price target, rise 2% to 2691p. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

07-26-23 1205ET