Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Antofagasta buoyed by strong copper prices
Copper miner Antofagasta [LON:ANTO] has published a half year report this morning. The company has seen its performance buoyed by strong prices for the metal, which served to improve revenues by 68% whilst also growing EPS by almost 400%. There has been a modest downward revision in copper production targets for the year as a result of adverse climate conditions, although with prices expected to be maintained and the global economic recovery tipped to continue apace, further support is expected to be seen for the copper market.
#2. Rank Group sees COVID enforced closures hit the business hard
Rank Group [LON:RNK] has published full year results for the period to 30th June this morning. The bulk of revenues have historically been generated from physical venues so COVID enforced closures over the last 12 months have hit the business hard. That’s resulted in a 50% decline in net gaming revenues, turning a £48m profit into a £67m loss. Since reopening in mid-May, venues have been performing around 20% below pre-pandemic levels, although ahead of cash break-even points.
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#3. Adnams six month revenues flat on previous year
There’s a half year report out from brewers Adnams [AQSE:ADB] this morning, covering the six months to June 30th. Revenues are essentially flat on the previous year, reflecting the late start seen following pubs reopening. As the chairman’s statement notes, despite hospitality trade resuming in April, the cold spring meant those forced to drink outside needed both stoicism and warm clothes, so the initial novelty soon wore off and it wasn’t until mid-May that reopening was really seen. The company is cautious over the outlook, both in terms of COVID disruption and rising input costs both for labour and also some products, but in a separate trading statement notes that it believes the worst of the pandemic may be behind it. Off trade sales also remain strong.