The FTSE 100 index drifted lower in early trading, falling by 15 points to 7205, despite GDP figures showing that economy had experienced robust growth of 4.8% during the quarter from April to June.
Mining stocks were weaker, mirroring losses overnight in Asian markets. Shares in Rio Tinto (RIO) were 7.5% lower at £56.37 after it paid a special dividend.
COMPANY NEWS
Shares in gaming company Entain (ENT) traded slightly lower at 1951p following the announcement of strong set of interim results. The company reiterated its full year guidance, and income investors will take comfort from the expectation that the divided will be reinstated with the final results in March. Moreover, the company highlighted a further £100 million of cost savings.
Group earnings before tax interest depreciation and amortization increased by 12% to £401m, however this figure was held back by the performance of the retail division where gaming revenue was down 46% reflecting real estate closures through most of the period.
In contrast, the performance of its digital business was extremely robust with net gaming revenue up 28% and EBITDA increasing by 35% to £496m.
Insurance and asset management company Aviva (AV.) announced first half results for the six months to June with a disappointing miss in operating profit which was 7% below consensus at £725m, predominantly due to a poor performance in the UK and Irish Life division.
The General Insurance business and the Canadian operation recorded more positive performances, the former benefiting from a reduction in claims and the latter delivering operating profits 28% ahead of consensus expectations.
Aviva’s mixed results were overlooked given the group’s announcement that it intends to return at least £4bn to shareholders by the end of the year against market expectations of £3bn. The group is starting with an immediate £750m share buy back. Shares were trading 2% higher at 415p.
Cinema operator Cineworld (CINE) posted a 59% decline in first half revenues from $712.4 million to $292.8 million and an EBITDA loss of $21.2 million compared with a prior year profit of $53m.
However, investors looked beyond the numbers to news that the group is considering a listing of its Regal movie chain on the US market, where it derives most of its revenues. Shares traded 7% higher at 65.7p.
Just Group (JUST), the provider of retirement income products and services, announced a strong set of results for the first half of 2021.
Adjusting operating profit was 47% higher at £90m driven by an increase in new business and favourable experience variances. The group recorded an IFRS loss before tax of £87m.
According to chief executive David Richardson, 'The fundamentals in our core markets are strong. We are confident in our outlook as we deliver sustainable and profitable growth across the Group.' Shares were flat at 106p.
Shares in holiday company TUI Group (TUI) traded 3% higher at 342p after announcing a significant pick-up in business during the quarter.
Despite an eighty per cent decline in revenues, the market focused instead on the recent surge in bookings from Germany and continental Europe.
MORE M&A DEALS
Shares in drinks maker Stock Spirits (STCK) soared 43% to 384p after the board recommended a 377p per share cash bid from private equity firm CVC Advisers.
The bidders described Stock Spirits as 'an attractive business with significant future growth potential' given its leading positions in central and eastern Europe.
Shares in aerospace firm Meggitt (MGGT) were slightly lower at 819p after surging 16% late yesterday following the news that US aerospace firm TransDigm had approached the firm with a 900p per share offer, rivalling Parker Hannifin’s existing 800p offer.
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