Pound Faces Hit From Another Potential England Lockdown

The lifting of most of England's remaining coronavirus restrictions from July 19 despite rising cases could lead to another lockdown and weaken sterling, Commerzbank says. The U.K. government's decision against imposing a lockdown in the early stages of the pandemic proved to be unsustainable, Commerzbank currency analyst Ulrich Leuchtmann says. The later lockdowns are imposed, the stricter and longer they probably are, he says. "If that were to happen the market's optimism that the Bank of England might dare a lift-off (i.e. the first interest rate hike) might be shattered somewhat." EUR/GBP levels around 0.85-0.86 would no longer be justified in that case, Leuchtmann says. 


 
Companies News:

Plus500's 1H Revenue, Customer Income Fell, But Sees Medium-Long Term Growth

Plus500 Ltd. said Monday that revenue and customer income declined in the first half of the year, but added that it has secured several opportunities that will enable the company to achieve further growth through organic investment and targeted acquisitions.

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Dechra Pharmaceuticals FY 2021 Revenue Rose Above Views

Dechra Pharmaceuticals PLC said Monday that its performance for fiscal 2021 was stronger than expected, marked by revenue growth of around 21%.

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Young & Co.'s Brewery Sells 56 Tenanted Pubs for GBP53 Mln

Young & Co.'s Brewery PLC said Monday that it is selling 56 tenanted pubs to Punch Pubs & Co. for 53 million pounds ($73.7 million) as part of a plan to focus on freehold managed pubs and hotels.

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Rothermere Considers Taking Daily Mail & General Trust Private

The company is in talks to sell insurance-risk division RMS

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Tate & Lyle to Sell Controlling Stake in Americas Primary Products Business to KPS Capital Partners

Tate & Lyle PLC said Monday that it has entered into an agreement with KPS Capital Partners L.P. to sell a controlling stake in its primary-products business in North America and Latin America for around $1.3 billion.

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Science Group to Report 1H Revenue of More Than GBP40 Mln; CFO to Resign

Science Group PLC said Monday that it will report revenue for the first half of 2021 in excess of 40 million pounds ($55.6 million), and that Chief Financial Officer Sameet Vohra will resign from the board at the end of July and leave the group at the end of September.

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Mobile Streams Signs Contract With Tappit Technologies Worth Around GBP480,000

Mobile Streams PLC said Monday that it has signed a major contract with Tappit Technologies worth around 480,000 pounds ($667,392) over four years, with a minimum GBP10,000 per month for at least six months.

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GSTechnologies Shares Fall on Widened FY 2021 Net Loss, Lower Revenue

GSTechnologies Ltd. shares fell Monday after it said that its net loss widened and revenue declined in fiscal 2021 as the coronavirus pandemic led to delays and cancellations of projects.

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Norman Broadbent CEO Resigns with Immediate Effect

Norman Broadbent PLC said Monday that its Chief Executive Mike Brennan has resigned and will leave the company immediately, with Executive Chairman Peter Searle taking over day-to-day tasks until a replacement is found.

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GoldStone Resources Receives Ghana Mine Irrigation Approval; Settles Bonds

GoldStone Resources Ltd. said Monday that it has received approval to start irrigation and leaching of ore at its Homase gold mine in Ghana, and that it has reached an agreement with its creditors.

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San Leon Energy Signs Heads of Terms for Potential Reverse Takeover

San Leon Energy PLC said Monday that it has signed heads of terms for a reverse takeover to consolidate Midwestern Oil and Gas Co.'s holdings in the company and Midwestern Leon Petroleum Ltd. into a single holding fully owned by San Leon.

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SDX Energy to Book $10.3 Mln Impairment Charge in 2Q

SDX Energy PLC said Monday that it expects to book a $10.3 million noncash impairment charge in the second quarter related to the gas reservoir in the LMS-2 well in Morocco, after getting negative results from the reservoir in the Lalla Mimouna Nord concession.

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Checkit PLC Appoints Kit Kyte as CEO

Checkit PLC said Monday that it has appointed Kit Kyte as chief executive with immediate effect.

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Secure Trust Bank 2020 Pretax Profit Expected to Beat Market Views

Secure Trust Bank PLC said Monday that it expects to post a 2020 pretax profit significantly ahead of current market expectations.

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Hawkwing Announces Potential Acquisition, Suspension of Listing

Hawkwing PLC said it has entered into a non-legally binding heads of terms for the acquisition of Internet Fusion Group Ltd., and that its shares have been suspended from trading on the London Stock Exchange from Monday as the transaction is listed as a reverse takeover under the U.K.'s Financial Conduct Authority's rules.

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Trakm8 CFO to Step Down, Successor Named

Trakm8 Holdings PLC said that Chief Financial Officer Jon Furber intends to step down from the board, effective Sept. 30, and it has appointed Jonathan Edwards as a successor.

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M.P. Evans CEO to Leave at the End of July

M.P. Evans Group PLC said Monday that its Chief Executive Tristan Price will leave the company at the end of July, with Executive Chairman Peter Hadsley-Chaplin taking over responsibilities until a successor is found.

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Predator Oil & Gas Appoints Lonny Baumgardner as Chief Operating Officer

Predator Oil & Gas Holdings PLC said Monday that it has appointed Lonny Baumgardner as chief operating officer with immediate effect.

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Seraphim Space Investment Trust Raises GBP178.4 Mln in London IPO

Seraphim Space Investment Trust PLC, a company focused on investing in space-technology businesses, said Monday that it has raised 178.4 million pounds ($248 million) in its initial public offering on the London Stock Exchange.

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NATS Holdings Swung to FY 2021 Loss on Covid-19 Hit

NATS Holdings Ltd. said Monday that it swung to a pretax loss for fiscal 2021 due the impact of the coronavirus pandemic on its revenue and on the value of its assets. 


 
Market Talk:

Daily Mail & General Trust's Reorganization Implies Premium of Up to 25%, Citi Says

0925 GMT - Daily Mail & General Trust has provided a trove of surprises as part of a possible major reorganization which point to a premium of between 10% and 25%, Citi says. The U.K. media group's reorganization includes a sale of its insurance-risk division RMS, a return of proceeds from that sale and shares in online car retailer Cazoo, and a take-private offer from DMGT's controlling shareholder Rothermere Continuation. The main uncertainty is the value of DMGT's holding in Cazoo, which would be distributed to DMGT shareholders, because it will be listed, Citi says. As of today, the implied valuation for DMGT would be between 1,140 and 1,285 pence, Citi estimates. Shares rise 1.5% to 1,056 pence.

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Plus500 Enjoys Positive Customer Growth Despite 1H Revenue Fall

0925 GMT - Plus500 Ltd's revenue performance for the first half was good with positive consumer growth, despite seeing an overall decline in sales, Peel Hunt says. The FTSE 250 online trading platform's first-half revenue was ahead of pre-pandemic levels in 2019, and even though there was a slowdown in new customers in the second quarter, which "should be expected given the lower levels of activity that prevailed over the period," Peel Hunt adds. The U.K. brokerage has a target price of 1,560 pence on the stock and says it will reviews full-year forecasts. Shares are up 0.1% at 11.50 pence.

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Admiral Looks Resilient to Insurance-Sector Turbulence

0901 GMT - Shares in Admiral Group rise 4% to 3251 pence after the insurer forecast better-than-expected first-half pretax profit and proposed an increased interim dividend. RBC Capital Markets has a sector perform rating and 2800p price target on the shares. "Though we expect the U.K. motor insurance industry is facing a number of headwinds in 2021, including regulatory reform and rising claims inflation, we believe Admiral's prudent approach to reserving means it's resilient to this," RBC analyst Kamran Hossain says. "However at a 2022 [expected] price/earnings [ratio] of 20x, we would await a better entry point before becoming more constructive."

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Global Recovery Is On Track Even as Variants Spread

0857 GMT - Concerns over Covid-19 outbreaks in various parts of the world due to the Delta variant added to the negative sentiment in markets last week, but the global recovery is on track despite the spread of this variant, UBS says. "Investors should stay positioned for the global economic reopening," Mark Haefele, chief investment officer at UBS Global Wealth Management, says. UBS remains convinced the recovery will continue because of the effectiveness of vaccines and low appetite for new lockdowns. However, not all countries will be able to normalize at the same rate, Haefele says. This means some emerging-market economies might be slower to reopen compared with the U.S. and Europe, UBS says.

Contact: London NewsPlus, Dow Jones Newswires; +44-20-7842-931

(END) Dow Jones Newswires

07-12-21 0610ET