Glencore's First-Half Seen Suffering From Lower Commodity Prices

Glencore's First-Half Seen Suffering From Lower Commodity Prices

1148 GMT - Glencore's first-half earnings are expected to be hit by lower commodity prices, especially for coal, analysts at Citi say in a note. The bank forecasts adjusted Ebitda of $11.4 billion in the period, broadly in line with Visible Alpha consensus of $11.3 billion, and below the previous year's result of $18.92 billion. "We think the market is likely to focus on achievability of production run rates for 2H 2023 and [the] consequent impact on unit cost dynamics," the analysts say, adding operational recovery expectations, working-capital movements, and capital-allocation strategy are expected to be in the spotlight. Glencore is set to release results on Tuesday after having reported production numbers in late July. ([e-mail])

COMPANIES NEWS:

Clarkson's Pretax Profit, Revenue Rise on Strong Broking Segment Performance

Clarkson PLC said pretax profit rose for the first half, when revenue was boosted by a strong performance at the broking segment, and that the board's expectations for the year are unchanged.

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Christie Group Sees 2023 Performance Below Views

Christie Group expects its full-year performance to be materially below previous expectations due to delays in exchanging contracts and changes to the timing and outcome of some significant portfolio assignments.

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PageGroup Backs Guidance After Profit Fell

PageGroup backed its operating profit guidance for the year as it reported a fall in pretax profit for the first half with temporary recruitment outperforming permanent recruitment given the uncertain macroeconomic backdrop.

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Cordel Sees 2023 In Line With Views, With Revenue Growing

Cordel Group expects to report results 2023 in line with market expectations, with revenue seen growing by a almost a third on-year.

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LSL Property Services Profits to Be Below Views on Challenging Market Conditions

LSL Property Services said that profits in the second half and full year will be below the board's expectations as they were hurt by recent change in mortgage market conditions.

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Carr's Group CEO Peter Page to Step Down at AGM in January

Carr's Group said Chief Executive Officer Peter Page plans to step down at next year's annual general meeting and that it plans to start the search for his replacement.

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Deepverge Sells Subsidiary Glanaco for EUR1

Deepverge sold its Ireland-based subsidiary Glanaco to its current management and previous owners for 1 euro ($1.1) as part of its move to reduce costs.

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Fulcrum Metals Agrees to Buy Canadian Gold Project for C$800,000

Fulcrum Metals said on Monday that it has agreed to buy a 100% interest in Ontario's Tully gold project from 1911 Gold Corp. for 800,000 Canadian dollars ($598,287) in cash.

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Marlowe Regularly Reviews Business Units But No Decisions Made

Marlowe said that it regularly reviews its business units to maximize shareholder value but hasn't made any specific decision on any of them.

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Pan African Resources Meets Gold Production Guidance

Pan African Resources met its revised gold production guidance for fiscal 2023 and expects increased production at its Barberton underground mines as continuous operations and other improvements have helped production, it said Monday.

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Etalon Group Sales Rose On Regional Push

Etalon Group's first-half new contract sales rose on its expanded affordable housing offer in regional markets.

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Vanquis Banking CFO Neeraj Kapur Steps Down

Vanquis Banking Group's Neeraj Kapur stepped down as chief financial officer with immediate effect for personal reasons.

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Abrdn 1H Adjusted Operating Profit Seen Rising -- Earnings Preview

By Elena Vardon

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Investor Buys Stake in Croma Security Solutions

A 6.4% stake in Croma Security Solutions Group was bought by Russell Long, a regulatory filing showed on Monday.

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KPMG adds six new partners in push to double size of legal arm -- Financial News

Big Four firm ramps up legal hiring in growth drive

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Superdry Signs New Line of Credit for Up to GBP25 Mln to Speed Up Turnaround

Superdry said it has agreed on a second line of credit of up to 25 million pounds ($31.9 million) with Hilco Capital, to help speed up the implementation of its turnaround plan and cost-reduction program.

MARKET TALK:

Card Factory Shares Look Good Value, With More Opportunities to Come

1121 GMT - Card Factory has delivered a first half performance materially ahead of management expectations, and despite even more future opportunities the shares still look cheap, Liberum says. The greeting-card retailer's key drivers behind its much-improved outlook come from gifting and celebrations which bodes well for general merchandise and sell-through rates , Liberum analysts say in a research note. "A greater focus on gifting is a key plank of the new strategy but with so many initiatives yet to land, we see multiple catalysts from the May Capital Markets Day yet to flow through," the brokerage says. Liberum retains its buy rating on the stock and raises its target price to 165 pence from 150 pence. Shares are up 15% at 102.0 pence. ([e-mail])

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Card Factory Shares Jump After Outlook Upgrade

1120 GMT - Card Factory shares surge 15% to 102 pence after the U.K. card and gift retailer flagged better-than-expected first-half trading and forecast full-year results materially ahead of its expectations. The company looks set to benefit from a greater focus on gifting and other planned new initiatives, Liberum Capital says. "We know 750 stores have now been reshaped with the new merchandising focus, so watch this space for further 2H outperformance," Liberum Capital analysts say in a note. The retailer is a high-quality growth stock and the shares look too cheap, Liberum says, reiterating its buy recommendation and raising its target price to 165 pence from 150 pence. ([e-mail])

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BAE Systems Long-Term Value Looks Credible After Guidance Upgrade

1113 GMT - BAE Systems' strong 1H and upgraded 2023 guidance prompts Citi to upgrade its EPS forecasts to 60.7 pence from 59.0 pence, helped by a slightly-lower tax rate. As the defense company accelerates from low-single digit to over-mid-single digit growth, increasing cash conversion and buying back stock, its long-term value is believable, Citi analyst Charles J. Armitage says in a note. Still, its shares, and those of its peers, could be hit if peace in Ukraine looks more likely, he says. "We believe that global defense budgets will continue to increase, regardless of most likely peace scenarios, and would regard this as a buying opportunity," he says. Citi rates the stock as a buy, raising its target price to 1,181 pence from 1,150 pence.([e-mail])

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Vodafone-1&1 Deal Likely to Increase Competition in German Mobile Market

1050 GMT - A wholesale agreement between Vodafone Group's German business and telecommunications operator 1&1 will likely lead to increased competition in Germany's mobile market, Citi analysts Georgios Ierodiaconou and Martin Hammerschmidt say in a note. The partnership will result in a material hit to Telefonica Deutschland Holding, which has an agreement with 1&1 that runs until mid-2025, and particularly to its free cash flow outlook, Citi says. "We view this development as potentially negative for Deutsche Telekom, given it may have second derivate effects for the market. Freenet on the other hand may benefit as Telefonica Deutschland will probably engage further with partners to fill the gap in [free cash flow] and capacity left by the loss of 1&1," Citi says. ([e-mail])

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Christie Group's 1H Loss Leads to Swinging Forecast Cuts

1049 GMT - Christie Group expects a first-half operating loss and its full-year performance to materially miss previous expectations, prompting Shore Capital to cut its full-year profit expectations. The professional-services provider has struggled with continued delays in exchanging contracts on transactions in its agency and advisory business, Christie & Co, and changes to the expected timing and outcome of certain significant portfolio assignments--prompting Shore to cut its 2023 adjusted pretax profit forecast to GBP1.4 million, from GBP4.8 million, analyst Robert Sanders says in a research note. "The slowdown in transactional invoicing experienced in 2023 to date by Christie & Co reflects wider market activity and sentiment as recently reported by a number of competitors," the investment group says. Shore has Christie as a house stock. Shares are down 20% at 117.5 pence. ([e-mail])

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European Stocks Drop After Mixed Asia; US Eyes Gains

1044 GMT - European stocks drop following mixed Asia trading, though Wall Street looks set to open higher. The Stoxx Europe 600 and CAC 40 fall 0.5% and the FTSE 100 and DAX retreat 0.7%, with German nonferrous metal supplier Aurubis backtracking 7% after nine-month results. Markets in Australia, mainland China and South Korea fell, though Hong Kong's Hang Seng closed flat and Japan's Nikkei 225 rose 0.2%. IG futures data show the Dow opening at 35118, versus Friday's close of 35065. "Investors will closely watch inflation figures from both the U.S. and China this week," IG analysts write. "Last month's downside surprise in U.S. CPI had a substantial positive market impact, so there's a risk that meeting expectations might disappoint investors." ([e-mail])

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Rolls-Royce Pricing, Cost Control Prompts Rating Upgrade

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08-07-23 0814ET