Hikma Pharmaceuticals was a weak feature in the FTSE 100 after cutting guidance in one of its key divisions.
The pharma group now expects its Generics unit to post full year revenues in the range of $650mln to $675mln, down from $710mln to $750mln, and core operating margin to be between 15% to 16%, down from around 20%.
But Generics is expected to return to growth in 2023, driven by new launches including RyaltrisTM and generic Xyrem®.
Shares fell 9.14% on the news to 1,601p.
Phoenix Group bounces after life insurance deal
Phoenix Group Holdings bounced higher after announcing the £248m acquisition of SLF of Canada UK a closed book UK life insurance company.
The deal is expected to deliver c.£470mln of incremental long-term cash generation with Phoenix targeting around £125mln of cost and capital integration synergies, net of costs.
Phoenix added that the deal would also add 2.5% to its dividend from this year’s final payout.
Peel Hunt analyst Andreas van Embden said: “This looks like an attractive cash transaction with Phoenix delivering significant synergies,which boosts the cash generation upfront and delivers a decent IRR.”
Shares were 2.33% higher at 668p after the news.
Profit upgrades follow upbeat first half at Serco Group (LSE:SRP)
Serco Group (LSE:SRP) PLC attracted plenty of positive broker comment in the light of better than expected first half results.
Shares advanced 2.4% on the news to 187.40p.
Peel Hunt analyst Christopher Bamberry raised his price target to 217p from 200p and reiterated a buy rating on the group.
First half pre-tax profit of £120mln beat his £111mln forecast with EBITA at £130mln, up 6%, on the first half of 2021 due to increased demand for case management in North America, employment services in the UK, immigration services in both Australia and the UK, the acquisition of WBB in April 2021.
He raised his full year pre-tax profit forecast to £207mln from £200mln.
Shore Capital analyst Robin Speakman was also impressed by the results reiterating his buy rating.
He said: “Clearly, the order book and pipeline provide a good measure of visibility through H2 and into FY23F”, adding “Serco is firmly on a growth path.”