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FTSE Down, Biffa Shares Fall Despite Five-Month Revenue Rise as Driver Shortages Weigh

Biffa Shares Fall Despite Five-Month Revenue Rise as Driver Shortages Weigh

Shares in Biffa drop 5% to 385 pence after the waste group reported higher net revenue in the first five months of its year to March 2022 than in the same period in 2019, but it flagged disruption from a lorry-driver shortage and other supply-chain issues. Trading matched expectations, with industrial and commercial volumes now slightly above pre-pandemic levels, Peel Hunt says. The brokerage increases its price target on the stock to 430 pence from 380 pence. "The shares are through our 380 pence target price and heading towards the 430 pence we suggested two months ago would be possible in a year's time," Peel analysts say.

 
Companies News: 

Fruugo.com to List on London's Junior AIM in October

Fruugo.com Ltd. said Wednesday that it plans to list on London's junior AIM market early next month.

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Cora Gold Agrees on Terms For Conditional $25 Mln Investment for Mali Gold Project

Cora Gold Ltd. said Wednesday that it has signed a $25 million conditional term sheet with investment firm Lionhead Capital Advisors Proprietary Ltd., and that it will use funds toward the development of the Sankoro gold project in Mali.

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Optima Health Plans London IPO

Optima Health Group PLC said Wednesday that it is seeking an initial public offering on the London Stock Exchange.

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Prospex Energy Receives Correspondence Stating Former Directors Breached Limit on Shares Issuance

Prospex Energy PLC said Wednesday that it has received correspondence stating that former directors of the company may have exceeded their authority regarding the issuance of new ordinary shares.

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Science Group Raises Stake in TP Group

Science Group PLC has increased its stake in TP Group PLC to 26.86% from 24.31%, according to a regulatory filing published Wednesday.

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B&M European Value Retail Revenue to Date in Line With Views

B&M European Value Retail SA said Wednesday that group revenue to date has been broadly in line with market expectations, and that gross margins in B&M fascia stores in the U.K. have been stronger than originally anticipated.

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Arbuthnot Banking Sells GBP2.5 Mln Worth of Secure Trust Bank Shares

Arbuthnot Banking Group PLC said Wednesday that it has sold 2.5 million pounds ($3.45 million) worth of shares in Secure Trust Bank PLC.

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Yellow Cake Nonexecutive Director Re-elected with Low Approval

Yellow Cake PLC said Wednesday that all resolutions at its annual general meeting were passed, though one resolution to re-appoint a non-executive director passed with lower shareholder approval.

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Genius Sports Logs 2Q Revenue Gains As Loss Widens

Genius Sports Ltd. on Wednesday recorded a deeper second-quarter loss year over year, but revenue grew across the company's business lines.

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Genius Sports Narrows Full-Year Revenue Projection

Genius Sports Ltd. on Wednesday raised its full-year revenue guidance at the midpoint, and restated its previous guidance for adjusted earnings before interest, taxes, depreciation and amortization.

 
Market Talk: 

Ferrexpo's Ebitda Is Expected to Soar to $1.7 Bln in 2021

1233 GMT - Following Vale's announcement that the fourth-quarter pellet premium for the Atlantic market is $47 per metric ton, Peel Hunt raises its 2021 Ebitda estimate for iron ore pellet producer Ferrexpo by 10% to $1.7 billion. However, net debt estimates for the year are unchanged due to higher capex and dividends, the brokerage says. In addition, Peel Hunt also raises medium-term forecasts for Ferrexpo as the pelletizer expansion project is set to complete about a year sooner than anticipated, whereas debottlenecking will allow for spare concentrate sales ahead of completion, Peel Hunt says. The brokerage reaffirms its buy rating on Ferrexpo and raises the target price to 520 pence from 510 pence.

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Anglo American Says Seventh Sales Cycle Reflects Positive Sentiment

1222 GMT - Miner Anglo American reporting De Beers cycle 7 sales of $515 million versus cycle 6 sales of $514 million reflects positive sentiment within the diamond industry's manufacturing sector and is reflective of healthy demand in the key markets of the U.S. and China, Citi says. Although the company noted that optimism within the sector was evident at the recent JCK Las Vegas trade show, as 3Q tends to be seasonally softer for rough diamond sales, risks remain for the next couple of cycle sales, Citi says. There are 10 sales cycles each year. Year-to-date rough diamond sales at $3.6 billion are higher than 2020's $2.9 billion and are approaching 2019's $4 billion, the U.S. bank says. Citi rates the stock buy.

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888's Acquisition of William Hill's Non-US Assets Seen Offering Earnings Enhancement, Re-Rating Scope

1150 GMT - 888's potential acquisition of William Hill's non-U.S. business makes sense strategically as it would offer diversification by product and geography, cross-sell scope, material costs savings from leveraging the proprietary tech, a more efficient balance sheet and scope for a re-rating post deal due to scale and growth rate, Jefferies says. The U.S. bank estimates a headline valuation of GBP2.3 billion for the William Hill non-U.S. assets. However, this isn't a "must do" deal as 888 remains highly attractive given its proprietary tech across a range of gambling products, Jefferies notes. The bank has a buy rating on 888, and raises the target price to 480 pence from 460 pence on the back of strong 2021 performance.

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Severe Drought to Hit Brazil's Power Sector

1106 GMT - The severe drought in Brazil will contribute to an extremely tight power balance in the country, Wood Mackenzie says. The country's electricity system operator released a scenario in which 5.5 gigawatts are missing for October and November if hydrology remains low, the consultancy says. The drought also affects Argentina and Chile. Brazil will need to ramp up gas imports to dispatch thermal power capacity, and Bolivian producers can take advantage of the situation, Wood Mackenzie says. The Brazilian power market hosts some of the biggest European utilities, including Enel, Iberdrola and Engie.

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888's Acquisition of William Hill Assets Would Quadruple Its Earnings

1037 GMT - There is a solid market and strategic rationale for 888's acquisition of William Hill's ex-U.S. online and retail assets, as the deal would significantly expand the gambling company's scale, Peel Hunt says. The merger could bring pro-forma fiscal 2021 Ebitda to $664 million, up from $164 million for 888 standalone, the brokerage estimates. "The strategic rationale for the Online acquisition is straightforward: bigger is better, and 888 could bring its demonstrable expertise to underperforming brands while extracting synergies." As for the Retail division, in a world of tighter regulation, William Hill's U.K. betting shops would serve as advertising billboards and access to an omni-channel strategy in the country, Peel Hunt says.

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UK Gas Output Expected to Recover in 2022

1033 GMT - U.K. gas production will recover in 2022 after plunging this year, Wood Mackenzie says. The consultancy forecasts output will rebound to 35 billion cubic meters next year, up from an estimate of 27 billion for 2021 and in line with 35 billion in 2020. The recovery will be driven by the start of new projects such as Saturn Banks and others that were deferred as a result of the coronavirus pandemic, and also infill drilling at large producing fields, Wood Mackenzie says. With an already tight U.K. winter balance, a recovery in gas production is critical for this cold season, the consultancy's analysts say. (

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UK Gas Production Plunges 28%, Contributing to Europe's Energy Crunch

1028 GMT - U.K. gas production is down 28% year-to-date, which is helping fuel the current European gas price rally, Wood Mackenzie says. Gas output in the eight months through August fell to 17 billion cubic meters from 24 billion in the same period of 2020, the consultancy says. The decline was driven by maintenances such as the one at the Forties Pipeline System in June, and delays in new projects such as Tolmount. However, Wood Mackenzie expects U.K. gas production to recover through the last months of the year and reach just over 27 billion cubic meters--which would still be down from 35 billion in 2020 and 34 billion in 2019.

 

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com

(END) Dow Jones Newswires

September 08, 2021 09:16 ET (13:16 GMT)

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