Half-year results from packaging giant Mondi PLC (LON:MNDI) were decent enough but investors were worried enough about the second half prospects to punish the shares.
Mondi was trading 4.9% lower at 1,714.5p after posting a profit before tax of €632mln, up from €490mln the year before, on revenue that edged up to €3.77bn from €3.73bn.
“Going into the second half of 2019, ongoing macro-economic uncertainties continue to impact on the trading environment,” said Peter Oswald, Mondi’s chief executive officer.
“Demand is generally softer across the markets in which we operate, while prices for key paper grades are currently below those of the first half. Furthermore, we expect a significantly lower forestry fair value gain in the second half,” he added.
10.30am: LSE pulls the trigger on monster acquisition
London Stock Exchange Group PLC (LON:LSE) has agreed on definitive terms with a consortium to acquire the Refinitiv business for US$27bn.
The deal, leaked in the weekend press, will see the bourses operator acquire what used to be the Reuters data information business.
READ London Stock Exchange: what's behind the acquisition of Refinitiv?
It’s an all-share deal that will result in the sellers – Blackstone and Thomson Reuters – having a stake of around 37% in London Stock Exchange.
Shares in LSE were up 6.5% at 7,058p, raising its market capitalisation to slightly more than £23bn.
9.30am: Kier bounces after reducing debt levels
There has been some good news for Kier Group PLC (LON:KIE), the heavily indebted infrastructure contractor, sending the shares 27% higher to 78.45p.
The company said net debt at the end of June was £167mln, while the average month-end net debt for the 2019 financial year was £422mln, which was at the lower end of previous guidance of £420-450mln.
On the downside, turnover for the year just ended is expected to be down £100mln year-on-year, largely as a result of property and land-led transactions that did not complete in June 2019; this will have a knock-on effect on profits “broadly in line with its historic gross margins”.
What do you think kier is hoping to gain / change / correct by sept 19? How are the managing the massive amount of debt, how are they managing the negative cash flow going out to working capital
— Winning Emergence (@sly_clank) August 1, 2019
Another fallen giant enjoying a good start to the day was Capita PLC (LON:CPI), the controversial operator in the once sexy world of outsourcing.
Its shares surged 9.3% to 127.65p after the much-despised outsourcing company maintained full-year profit guidance after delivering half-year profit before tax that was in line with management’s expectations.
"Capita is now in the second year of a multi-year transformation and we remain on track to hit the targets we set in 2018,” said Jon Lewis, the chief executive officer of Capita.
Proactive news headlines
Revenue for the financial year just ended at driver monitoring systems specialist Seeing Machines Limited (LON:SEE) is expected to be slightly ahead of management’s guidance.
Alba Mineral Resources plc (LON:ALBA) has, in a statement, highlighted that test production at the Horse Hill project has switched back to the deeper Kimmeridge oil zones.
Pharma giant Novo Nordisk has extended its contract with e-Therapeutics PLC (LON:ETX) for the UK drug discovery firm to help search for novel treatments for type-2 diabetes.
Eland Oil & Gas PLC (LON:ELA) has achieved first production from the early production facility (EPF) at the Gbetiokun oilfield, part of the OML 40 asset.
Motif Bio PLC (LON:MTFB, NASDAQ:MTFB), the antibiotics developer, has amended its financing arrangement with Hercules Capital.
Indian power firm OPG Power Ventures PLC (LON:OPG) has reported a £14mln post-tax profit for the twelve months ended 31 March 2019, compared to a 2018 loss of £100.9mln.
Tharisa PLC (LON:THS) is to press ahead with the construction of a proprietary Vulcan Plant at its platinum and chrome mine in South Africa.
Discount dining platform operator BigDish PLC (LON:DISH) has expressed pleasure at the management recruitment campaign to support its roll-out in the UK.
Digitalbox PLC (LON:DBOX), the owner of satirical news website The Daily Mash, has agreed a partnership with UK comedy video platform NextUp that will bring in new ad revenues.
ADES International Holding PLC (LON:ADES) told investors it has secured a US$80mln loan facility from Saudi Arabia’s National Commercial Bank (NCB).
CentralNic Group PLC (LON:CNIC) has confirmed the A$24mln acquisition of TPP Wholesale Group has completed.
Tissue Regenix PLC’s (LON:TRX) chief executive Steve Cauldwell is to step down permanently after a recurrence of the illness that kept him away from January to June.
Bacanora Lithium PLC (LON:BCN) says the first of the three approvals required for Chinese firm Ganfeng to take a strategic stake has been granted.
ValiRx PLC (LON:VAL) has received patent protection in Europe for its pre-clinical therapeutic compound VAL301, which is being lined up as a treatment for endometriosis.
Remote Monitored Systems PLC (LON:RMS) subsidiary Geocurve is setting up a mobile mapping joint venture with an established survey specialist.
Ashley House PLC (LON:ASH) is exploring ways to raise funds as it waits for three deals to complete after legal delays. The supported care housing firm said that due to reasons outside of its Morgan Ashley joint venture’s control, three extra care schemes were yet to reach financial close.