Today Barclay’s (LON:BARC) reported in their first half year results ending 30 June that profits have fallen 21% down from £2.6bn in 2015 to £2bn. The bank also reported that net profits stood at £803m, a 18% decline from £1.2bn in the same period last year. The decline is thought to be due to the uncertainty across the markets following Britain’s decision to leave the EU which has drastically damaged the bank’s interest in assets. As a result of the difficult economic environment, Barclay’s reported a loss of £1.9bn of it’s ‘non’core assets’ it had planned on offloading towards the end of the 2017 season. As such, was the group’s revenue which was down 7.5% falling to £5.97bn. A mix of conduct charges and marginal compensation costs meant that operating expenses dropped to £7.7bn. There was positive signs for the global giant however, as profits from its core business which accounts for its credit cards, consumer lending and investment, grew by 19% to £2.4bn. Also rising was the bank’s core capital ratio, which grew from 11.3% to 11.6% beating expectations. Chief Executive, Jes Staley said: “Taken together, the picture in the second quarter is one of strong and accelerating progress against our strategy. We remain confident that it is the right plan for Barclays, and see no reason to adjust it, or the pace of delivery, in light of the vote by the UK last month to exit the EU.” The direction Jes Staley hopes to lead the company, is for it to become a ‘transatlantic’ bank securing ties between the US and Britain. As such, the banks dividend prices remain at 3p in 2016 down from 6.5p from earlier cuts in order to sustain capital levels. The group reaffirmed it’s target of delivering a full year cost target of £12.8bn. One of the main points from the report announced that the bank has taken a £400m ‘provision for payment protection insurance’ meaning that the overall costs from the scandal so far have amounted to £7.8bn. In early morning trading, Barclays share price increased 3% trading shy of 150p. At 10:10am BST Barclays PLC traded at 155.88 + 9.38 (6.40%) 29/07/2016

Standards & Poor Global Inc. (NYSE: SPGI) today reported a 13% increase in net income in the second quarter. The figure beats analyst estimates thanks to new acceleration in the bonds market.

S&P Global’s adjusted net income stood at $385million in Q2, beating estimates by $33million. Revenues grew by 10% to $1.48bn, in respect to the same period last year. The company is the owner of the largest credit rater – S&P Global Ratings. However, income from credit ratings suffered in the first quarter as raising volatility in financial markets inclined borrowers to delay debt rises which prompted lower demand for new ratings. In the second quarter uncertainty in the markets seemed to ease as bond issuance increased 18% prompting a 4% increase in revenues for the S&P Global Ratings, to $682 million, comprising the largest share of S&P Global Inc.’s income. Transaction revenues this quarter grew by as much as 5% to $343 million. Non-transactional revenue was up 3%, to $339million, thanks to growth in surveillance, CRIDIL, commercial paper activity as well as royalties from Risk Services. Out of other sectors in the S&P business, Global Market Intelligence performed best, with revenues increasing 29% to $416 million in Q2, compared to the same period last year. The company reported that operating profits in this sector grew as much as 48% to $93 million thanks to SNL acquisition, organic growth, and progress on integration-related synergies. Adjusted diluted earnings per shares increased to $1.44, up 17% compared to the second quarter in 2015. The company has also made progress in reducing costs. Adjusted Expenses decreased by 5% over partly due to reduced outside services.

President and CEO of S&P Global, Douglas L. Peterson stated:

“We are pleased that every business segment delivered revenue growth despite macroeconomic pressures including low commodity prices and ongoing volatility in the markets we serve. Increasingly, market participants look to S&P Global for the benchmarks and essential intelligence needed to conduct business.”

He continued:

“In addition to our progress on creating revenue growth, we continue to make progress on our productivity initiatives and SNL integration synergies. Overall, our performance enables the Company to continue investing in our portfolio of great assets to improve our customer experience while simultaneously delivering excellent financial results.” Forecasting developments for the two quarters to come, S&P Global reflected on the still pending sale of J.D. Power. The company stated that it “expects to rellie on stepped up repurchases of shares to minimize dilution from the sale.” Revenue growth has been forecast at mid-single-digit as it will no longer include income from J.D. Power. The company has however adjusted its guidance on adjusted diluted EPS upwards by $0.05. It expects figures at the end of the year to range between $5.05 and $5.20. The share price of S&P Global Inc. (NYSE: SPGI) dropped sharply early on in the year as fear that growing volatility in the financial markets would affect revenues. January saw a drop in share prices of as much as 19.23% to a low of 80.77 in early February. It began to recover after mid-February but saw another slump due to the Brexit vote losing 10% over the three-day period after the vote, to stand at 99.38. Since then the share price has recovered and the positive earnings report has seen share prices jump 3.44% to a high of $121.5 in early market trading. At 4.23pm S&P Global Inc. (NYSE: SPGI) shares were trading at $121.34 (+3.34%).

Sky PLC today reported a 7% increase in revenue in its 12-month earnings ending 30 June 2016.

The entertainment and communications company Sky reported £11.965bn profit compared to £11.221bn last year. Adjusted operating profit grew as much as 12%, from £1.397bn in 2014/15 to £1.558bn in the 12 month period ending the 30 June 2016. Earnings per share increased by 13% to 63.1p. The company could report on twelve years of consecutive growth in dividends to a current level of 33.5p. Across this year the group added 808,000 new customers and sold 3.3 million new products.

CEO Jeremy Darroch, stated: “it’s been another excellent year for Sky. We have broadened our business and expanded into new consumer segments, applying our proven strategy across the group.”

Revenues in Sky’s biggest market, the UK and Ireland passed £8bn this year due to the broadening of their services and especially the new premium service SkyQ. The company has also expanded their TV offers available in its’ other big markets, Germany and Austria. Costs grew 6% over the 12-month period due to increases in costs of airing the German Bundesliga and continued investment in programming to enhance further investment in original content and box sets. Sky did however offset some of these costs as it did not renew the Champions League as well as the Ryder Cup for the UK and Ireland. For the coming twelve months, the group aims at a continued revenue growth rate of 5-7%. It will keep a continuing focus on cost efficiency, especially in eye of the upcoming approximate costs of £600million to renew its’ UK Premier League rights. It is also looking to further enhance and expand its’ services across markets with new service launches across markets still to come this year. New launches will include Sky1 in Germany, Ultra HD services in both the UK and Germany and NOW TV Combo in the UK. Darroch stated: “Our deep insights into the needs of customers, along with our investments in brilliant programmes and technology, strong relationships with our partners and, above all, our desire to embrace change means that we continue to better serve our customers, and grow our business. Our ambition is to be the best customer-led entertainment and communications company in the world, delivering long term benefits for all our shareholders.” Share prices for Sky PLC dropped greatly in anticipation as well as in reflection of the UK’s Brexit vote, losing as much as 16.5% between the 9^th and 27^th of June. Since then they have however recovered to pre-Brexit levels. After release of full year earnings results, share prices jumped 6.71% in early morning trading to a high of 949.75. At 2.30pm Sky PLC shares (LON: SKY) were trading at 911.00 (+2.65).  

The digital platform for takeaway food orders, JUST EAT (LON: JE) today reported record earnings up 59% from the first half of 2015 as orders over the platform having more than doubled compared to H1 the past year.

JUST EAT revenues for the first half of 2016 stood at £171.6 million, up 59% from last year’s £107.8million by the 30 June. Basic earnings per share were up a staggering 118% to 3.7p compared to 1.7p in the same time period last year. Underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 107% to £53.4million. Net cash flows grew to £47.8million and represent a 97% conversion from EBITDA excluding restaurant cash, compared to 88% conversion rate in H1 2015. The astonishing growth in revenues was driven by a 55% increase in orders, from 41.9million in the first half of 2015 to 64.9milllion in the period of 2016 ending on the 30 June. The platform now processes orders worth more than £1.1billion, up more than 400 million from H1 2015, for restaurants in 13 countries around the world. Active user numbers were up 45% to 15.9million. 70% of all orders now come in via mobile devices compared to 60% in the same period last year.

CEO David Buttress commented:

“JUST EAT has made a very strong start to 2016. […] Particularly pleasing has been the continued scaling of our international markets in the period, highlighted by our success in creating the clear market leaders in Spain, Italy and Mexico.” The company acquired businesses in Italy, Brazil, Mexico and Spain earlier this year and reports that the integration of the businesses is progressing well. The company has increased its’ forecast on full year revenues to £368million, dependent on exchange rates remaining at current levels. This represents an upgrade of £10million from former forecasted figures. £7million of the upwards adjustments are attributed to an improved trading positions and £3million to favourable changes in exchange rates. JUST EAT also hopes to profit from investment in product, technology and marketing throughout the second half of 2016 as it reports that it will continue to invest in its’ business for “profitable growth”. JUST EAT PLC (LON: JE) share prices jumped 7.7% on the encouraging earnings report in early morning trading to a high of 522.0. At 1.04pm JUST EAT PLC shares were trading at 508.61(+5.11%).

Thomas Cook (LON:TCG) Group earnings have fallen sharply in its third quarter as a result of ongoing terrorist incidents across Europe have waded in on holiday booking numbers. Recent terror attacks in Turkey and Brussels meant that Group revenue dropped 8% to £1.85bn from £1.95 as of June 2015. The biggest hit to the company was a 5% overall fall in summer bookings due to a weak demand for destinations such as Turkey despite it being the groups second largest area of sales in 2015. Sales instead are now increasing in Mediterranean areas such as Cuba and Bulgaria. In total, the airlines summer programme is 81% sold, a 3% reduction from the same period in 2015. Underlying profit for the company was reported at £2m, a £22m fall from 2015. The fall in profits for the airline means that Thomas Cook has had to change its annual profit outlook reducing it from £310m-£335m down to £300m. Despite the damaging results from the report, shares in Thomas Cook were beyond stable rising 9% to 65.27p in early morning trading as an influx of early winter bookings took point rising 19% in the groups season calender. Chief Executive of Thomas Cook, Peter Frankhauser said: “Since the half year, we’ve taken action to further reduce our capacity to Turkey and increased sales of holidays to other areas, including the Western Mediterranean and long-haul destinations such as the USA. Growth to smaller destinations such as Bulgaria and Cuba is also strong. “We are operating in a challenging geopolitical environment, with repeated disruption in some of our key source and destination markets. In addition, while Brexit has had no noticeable impact on our bookings so far, it has added to a general sense of uncertainty – for our business and our customers alike At 11:47am BST Thomas Cook Group traded at 63.80 + 3.80 (6.33%)

One of world’s largest mining company’s Anglo American PLC (LON:AAL) managed to reduce its’ net debt by $1bn in the first half of 2016. The company is now on track to deliver a promised reduction in debt to $10bn by the end of the year, despite facing persistent difficult conditions in the commodities market. Net debt decreased to $11.7 billion in the first half of 2016, down from $12.9bn at the end of 2015.

Anglo American earnings decrease due to persistently low commodity prices

The company reported operational profits before interest and taxation of 1.382bn. This represents a decrease of 27% from the first half of 2015. The figure includes shares in associates and joint venture activities. Continued decreases in revenue can be attributed to persistent lower commodity prices. Price falls in commodities wiped out $1.2bn in EBIT this semester. Weaker currencies in producer countries partially reduced the impact, saving around $0.9bn. The company also undertook major cost reductions. The earnings report for the first half of the year still shows vast reductions in revenues. However, the company managed to beat analysts’ expectations through rigorous cost cutting measures. Earnings per share stood at 54 cents, compared to an expected 25.4 cents. The company did not pay an interim dividend of their strategic plan outlined last December. Anglo American sold $1.5bn worth in assets in the first half of 2016. The company expects to double this figure by the end of the year. The largest share of underlying revenues was contributed by De Beers which generated $379bn. Anglo American holds an 85% stake in the leading company in the diamond industry. The company therefore benefited greatly from the company’s latest deal with Namibia. In May this year De Beers signed a ten-year sales agreement with the Government of the Republic of Namibia for the sorting, valuing and sale of Namdeb Holdings’ diamonds.

Reducing debt to $10bn

The company reported that it managed to strengthen its’ balance sheet “through capital and cost discipline and expects to deliver net debt of less than $10 billion at the end of 2016” Chief Executive of Anglo American, Mark Cutifani stated: “Sharply lower prices across our products were mitigated by our self-help actions on costs, volumes, working capital and capital expenditure, together contributing to the $1.1 billion of attributable free cash flow generated in the first half of 2016. Across the business, our copper equivalent unit costs have reduced by 19% in US dollar terms, representing a 36% total reduction since 2012.” The company also stated that it aims to deliver 12% more produce than in the same time period in 2012 – despite a 35% reduction in assets and 40% reduction in labour capacity. “We will continue to divest non-core assets using strict value thresholds as we continue to reduce our debt levels and position the core business on a foundation to deliver sustainably positive cash flows.” Cutifani added. Anglo American PLC (LON: AAL) share prices jumped 6.3% in early morning trading to reach a high of 849.2. At 11.52am shares were trading at 841.4p (+5.28%).

BAE systems (LON:BA) today released its first-half year earnings insisting that the result of the EU Referendum will lead to a period of uncertainty but will not detrimentally impact operations in the immediate term. The UK’s largest defence company reported that earnings rose 6.1% as sales increased by £2bn to £8.7bn as well as a rise in revenue for the defence giant growing 3% to £8.3bn. As a result, underlying earnings increased to £849m equating to 17.4p per share from 17.1p per share at £800m in 2015. BAE said the increase in earnings was marginally due to the weakening of the pound which meant that trades such as US dollar deals became increasingly more valuable and returned profitable growth. The company’s interim dividend also increased by 2% to 8.6p per share Chief Executive Ian King said: “In the first half of 2016, BAE Systems performed well. Despite economic and political uncertainties, governments in our major markets continue to prioritise national security, with strong demand for our capabilities. In the US, we are seeing encouraging signs of a return to growth in defence budgets and improved prospects for our core franchises. In the UK, the result of the EU referendum will lead to a period of uncertainty, but we do not anticipate any material near-term trading impact on our business. Our business benefits from a large order backlog, with established positions on long-term programmes in the US, UK, Saudi Arabia and Australia. We are well placed to maximise opportunities, deal with the challenges and continue to generate attractive shareholder returns.” BAE systems has had to cope with numerous spending cuts in recent years, however ‘encouraging signs of growth’ can be found in a number of trade deals securing long term programmes with the US and with the recent renewal of Britain’s nuclear determent programme announcing that BAE systems will be the front runner in the £31bn campaign. The company also announced that cyber security will become an increasingly important part of government security and as such, applied intelligence had a high demand in sales during the 6 months ending July 2016. In reaction to the report, early morning trading in London saw shares in the company rise 1.1% in the first half hour of trading up 0.8% at 544p. BAE has so far valued at £17.3bn, a total growth of 8.9% so far this year. At 10:05am BST BAE Systems plc traded at 545.00 +5.50 (1.02%) 28/07/2016