Edison Investment Research

John Lewis Partnership sees pre-tax plunge in the six months to the end of July.

John Lewis’s Waitrose supermarkets business, see like-for-like sales growth of 2.6%.

John Lewis Partnership saw pre-tax profits plunge by 80% to £6m in the six months to the end of July. Exceptional items pre-tax profits dropped 99% to £1.2m, driven by an operating loss of £33m at the group’s department stores, which were forced to match troubled rivals’ heavy discounts under their “never knowingly undersold promise”.

Morrisons hits nine year sales record

Interim revenues up 4.5% to £8.8bn

Wm Morrison Supermarkets has announced its best like-for-like sales figures for nine years with a 6.3% increase in the second quarter of this year. The quarterly performance helped the group boost like-for-like sales for the half-year by 4.9%. Interim revenues were up 4.5% to £8.8bn, while underlying pre-tax profits advanced 9% to £193m. The group has now seen sales growth for eleven consecutive quarters.

GVC Holdings (GVC); 1H18 results: Reported revenue up 195% to £1,105.9m

Stock up 1.98% to 1,083.00p at 08:15

For the six months ended 30 June 2018, GVC reported that underlying EBITDA increased by 133% to £235.0m and underlying operating profit grew 140% from last year to £188.6m. On a pro forma basis, group revenue increased 8%, mainly driven by Online and European Retail.

Oxford BioMedica (OXB);interim results:gross revenue up by 118%: operating profit turned positive

Stock up 0.75% to 819.40p at 8:04

OXB announced its interim results for the six months ended 30 June 2018. Gross income grew 118% to £36.0m (H1 2017: £16.5m) and operating profit turned positive to £9.4m (H1 2017: -£2.2m).

Choose your narrative with care for 2019

Trade, politics or tighter US monetary policy? One may have a light at the end of the tunnel

In the 10 years since the global financial crisis of 2007-2008 there has been a perennial fear that the withdrawal of central bank support would lead to a collapse in asset values, which had been artificially inflated by ultra-low interest rates and asset purchases. With equity markets outside the US now having fallen by 13% in US dollar terms since the peak in Q1 18 as US interest rates have risen, it is very easy to become convinced this is the start of something bigger. While experience is in general an advantage, investors should beware of the risk of being too quick to make emotive links with the run-up to the 2008 financial crisis and emerging market crises of the 1990s. Notwithstanding the recent market declines, when we look ahead into 2019 we can see scenarios which imply a continued, albeit slower, global GDP and profits expansion - and a pause or slowing in Fed rate increases.

Galliford Try announced a 28% increase in full-year pre-tax profits

Galliford Try raises $150m from shareholders

Construction and housebuilding group Galliford Try has announced a 28% increase in full-year pre-tax profits before exceptional items to £189m on revenues 11% higher at £3.1bn.

The company raised £150m from shareholders earlier this year after taking a hit on its troubled Aberdeen bypass project, which it had been working on with the collapsed construction group Carillion.

Chief executive Peter Truscott says “good progress” has been made towards completion of the contract, with significant parts of the road open to traffic and the final section expected to be open by late autumn.

Dunelm Group reported in full-year underlying pre-tax profits of £102m

Issues at online retailer Worldstores has "negative impact

Home furnishings retailer Dunelm Group has reported a fall in full-year underlying pre-tax profits from £109m to £102m, due to issues at Worldstores, the online furnishings business it bought two years ago.

SSE warns that first-half adjusted profits will halve after a drop in demand

SSE Posts Profits Warning

Energy utility SSE has warned that first-half adjusted profits will halve after a drop in demand due to “relatively dry, still and warm weather” and “persistently high” gas prices.

ReNeuron (RENE); trading update: first clinical site initiated for US Phase IIb study

Stock up 0.66% to 83.55p at 8:21

RENE announced the initiation of the first clinical site in the US Phase IIb study (designated PISCES III – a randomised, placebo-controlled clinical trial in 110 patients) with its CTX cell therapy candidate for stroke disability.

Epwin (EPWN); H1 2018 results; higher revenue but lower YoY due to adverse weather in early 2018

Stock down 2.05% to 74.00p at 8:10

EPWN’s revenue was lower YoY at £142.4m in H1 2018 (H1 2017: £149.9m), albeit better than expected despite the impact of adverse weather in early 2018. Underlying operating profit declined to £7.1m (H1 2017: £11.1m) as cost inflation continued to impact the industry. The company guided FY adjusted profit before tax to be in line with market expectations.