Market News - Page 816

Background

The influence of sentiment and interest rate expectations dominated financial markets over the period under review. Widespread uncertainty initially prevailed as falling oil and commodity prices coupled with anxiety over potential higher short term interest rates induced significant market volatility. Constant evidence of lower than expected global growth and benign inflation contradicted consensus opinion of the need for tighter policy. The UK's Referendum on Europe produced a result unanticipated by pollsters or the markets, and an immediate period of market turmoil ensued, the most important outcome of which, for the Company, has been a sharp deterioration in the value of Sterling. For now, policy makers have reacted by retreating from any imminent policy tightening and offering conciliatory statements on monetary policy. Consequently, bond yields have sunk to even deeper historical lows and a tentative mood of optimism has returned to financial markets….

Results
We saw many positive developments, notably 7% growth in our own beer volumes and our spirits volumes were up by 60% in the first six months of the year. Turnover grew by 7% although our first half operating profit was behind that achieved in 2015. This was as anticipated and included in our AGM statement. We have noted in previous years that as our profits arise more in the second half of the year, the first half result can be quite volatile.
The main reasons for the lower first half result were the expansion of our shop and managed house retail operations, where earnings tend to be stronger in the second half of the year, the increased investment that we have made in marketing and the decline in the Sterling exchange rate.
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11 August 2016
This announcement contains inside information
Young & Co.'s Brewery, P.L.C. (“Young's” or “the Company”)
Board changes
Young's today announces the following changes to its Board of directors.

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Manchester Building Society's 2016 Interim Results
The Directors of Manchester Building Society (the “Society”) announce that the Society is in the process of preparing its accounts for the 6 months ended 30 June 2016 and plan to issue them before the end of September.
The Directors expect that the accounts will show that there will be a loss for the 6 months. This is largely due to professional costs incurred in exploring options to secure the future of the Society given its Common Equity Tier 1 (“CET1”) regulatory capital position and the ongoing run-off of the balance sheet. In addition, the Society has continued to incur costs in pursuing its claim against Grant Thornton LLP, the Society's previous external auditors.
The Directors expect that as at 30 June 2016 the Society will have met its Individual Capital Guidance (“ICG”) set by the Prudential Regulation Authority but will not meet the qualitative standards for the level of CET1 regulatory capital.
In such circumstances, article 141(3) of the Capital Requirements Directive IV, as a capital conservation measure, prohibits a distribution in connection with CET1 capital and Additional Tier 1 instruments. This would prohibit the payment of interest on both tranches of the Society's Permanent Interest Bearing Shares (“PIBS”).
As a result, the Directors expect that the PIBS coupons, scheduled to be paid in October this year, will not be paid.
The Society's liquidity position remains strong.
The person responsible for arranging the release of this announcement on behalf of Manchester Building Society is Christopher Gee, Society Secretary.
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Response to Share Price Movement
Entertainment One Ltd. notes the recent movement in the Company's share price.
The Company confirms that it has received a preliminary proposal (the “Proposal”) with respect to a possible offer valuing the issued and to be issued share capital of the Company at 236 pence per share, which may or may not lead to an offer being made for the Company.
The Board of eOne has reviewed the Proposal and has unanimously rejected it on the basis that it fundamentally undervalues the Company and its prospects. …

Benchmark, the international biotechnology and food chain sustainability business, is pleased to announce a placing of 47,279,127 new ordinary shares (the “Placing Shares”) at a price of 65 pence per share (the “Placing Price”) to raise approximately GBP30.7m before expenses (the “Placing”).
The Placing Shares represent approximately 10% of the issued share capital of the Company prior to the Placing. The Placing Price represents an approximately 11.1% premium to the closing middle market price of 58.5 pence per ordinary share on 4 August 2016, being the last trading day immediately preceding the date of this Announcement.
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LONDON STOCK EXCHANGE GROUP plc
ANNOUNCEMENT OF INTERIM RESULTS
FOR THE 6 MONTHS ENDED 30 JUNE 2016
Unless otherwise stated, all figures below refer to continuing operations(1) for the six months ended 30 June 2016. Comparative figures are for continuing operations for the six months ended 30 June 2015 (H1 2015).
— Continued good financial performance with growth across all core business areas – in particular, in Information Services, including strong results at FTSE Russell, in Capital Markets and at LCH
— Revenue up 9% to GBP721.9 million (H1 2015: GBP663.0 million); total income up 11% to GBP785.8 million (H1 2015: GBP705.9 million)
— Adjusted operating profit(2) up 9% at GBP333.3 million (H1 2015: GBP305.7 million) as operating expenses remained well controlled while continuing to invest in growth opportunities; operating profit of GBP199.0 million (H1 2015: GBP210.5 million)
— Profit after tax of GBP114.5 million (H1 2015: GBP130.8 million) which included non-recurring merger related expenses; and, after accounting for the previously announced tax effects of the Russell IM sale, becomes a loss after tax of GBP15.9 million on a reported basis including discontinued operations (H1 2015: GBP165.1 million)
— Adjusted EPS(2) up 16% at 57.7 pence (H1 2015: 49.9 pence); basic EPS down 18% to 27.4 pence (H1 2015: 33.4 pence)
— Interim dividend increased 11.1% to 12.0 pence per share (H1 2015: 10.8 pence per share) in line with our stated dividend policy — Strong balance sheet position with leverage reduced to 1.3 x net debt:EBITDA

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A GOOD FIRST HALF PERFORMANCE
Financial highlights — Total sales up 6.0% to GBP422m
— Company-managed shop like-for-like sales up 3.8%

— Operating profit excluding property gains and exceptional charge* up 6.7% to GBP27.2m (2015: GBP25.5m)
— Property disposal gains of GBP2.2m (2015: GBP0.1m)
— Diluted earnings per share excluding exceptional charge* 22.3p (2015: 19.5p)
— Pre-tax profit including property profits and exceptional charges GBP25.4m
— Continued strong cash generation: GBP44.7m net inflow from operating activities
— Ordinary interim dividend per share of 9.5p (2015: 7.4p)

*before exceptional pre-tax charge of GBP4.0m (2015: GBP nil) in relation to previously announced restructuring
Operational highlights
— Good results from sales initiatives:

– strengthening of 'Balanced Choice' range
– further development of breakfast and hot drinks offer
– successful launch of improved Greggs Rewards app …