GlaxoSmithKline shares were up 0.3% to 1,791p in early morning trading on Wednesday after the pharmaceutical company announced its acquisition of Sierra Oncology for $1.9 billion.

Sierra Oncology is a California-based late-stage biopharmaceutical firm with expertise in targeted therapies for the treatment of rare types of cancer.

GlaxoSmithKline reportedly sought to purchase Sierra Oncology after the company’s differentiated momelotinib was identified as a potential means to address critical unmet requirements of myelofibrosis patients with anaemia.

The group said that Sierra’s momelotinib would serve to complement GlaxoSmithKline’s expertise in haematology.

Myelofibrosis is a fatal form of bone cancer, which impacts the normal production of red blood cells, and normally requires transfusions due to the employment of the commonly used JAK inhibitor.

The treatment has proven difficult as a result of high patient levels of anaemia, with 40% of new patients presenting with the condition and an eventual rate of almost 100% in existing patients, which currently causes a treatment drop-out rate of 30% due to complications arising from the disease.

In January this year, Sierra Oncology made significant progress with its MOMENTUM phase III trial, which indicated that its momelotinib could potentially lead to a beneficial effect on anaemia, while also reducing the need for transfusions and treating myelofibrosis symptoms in patients.

Sierra Oncology currently anticipates a US regulatory submission in Q2 2022 and an EU submission in HY2 2022.

GlaxoSmithKline expects sales contributions to start in 2023 with an anticipated significant growth potential following the completion of the merger.

The acquisition will also support the development of a strengthened portfolio of new specialised medicine and vaccines for the pharmaceutical giant.

“Sierra Oncology complements our commercial and medical expertise in haematology,” said GlaxoSmithKline CCO Luke Miels.

“Momelotinib offers a differentiated treatment option that could address the significant unmet medical needs of myelofibrosis patients with anaemia, the major reason patients discontinue treatment.”

“With this proposed acquisition, we have the opportunity to potentially bring meaningful new benefits to patients and further strengthen our portfolio of specialty medicines.”

The value of rough diamonds sold by Anglo American for De Beers’ third sales cycle in 2022 amounted to $565m on a provisional basis announced Anglo American on Wednesday.

Anglo American is a leading worldwide mining business that uses the newest technologies to explore new resources and to mine, process, move and market its products to its clients, all while being safe and sustainable.

The company aims to be carbon neutral across its businesses by 2040 as a responsible producer of diamonds through De Beers where Anglo holds 85% ownership.

De Beers Group has continued to employ a more flexible approach to rough diamond sales during the third sales cycle of 2022, with the Sight event prolonged beyond its regular week-long period, due to constraints on the movement of people and products in various jurisdictions across the world.

As a result, the provisional rough diamond sales number for Cycle 3 represents the estimated sales value for the period 28 March to 12 April and is subject to change based on final completed transactions.

The sales value of the uncut diamonds for De Beers is $565m on a provisional basis for Cycle 3 2022. In Cycle 3 2021, the actual sales value of the rough diamonds amounted to $450m.

Bruce Cleaver, CEO, De Beers Group, said, “On the back of robust demand for rough diamonds in 2021 and jewellery sales in the first quarter of 2022, and reflecting continued year-on-year growth in consumer demand for diamond jewellery, demand for De Beers Group rough diamonds remained strong in the third sales cycle of 2022.”

“As we head into the seasonally slower second quarter of the year, diamond businesses are adopting a more cautious and watchful approach in light of the war in Ukraine and associated sanctions, as well as Covid-19 lockdowns in China.”

Anglo American shares gained 1% to 4,138p in early morning trade on Wednesday.

Tesco shares were down 5% to 256.8p in early morning trading on Wednesday, after the Big 4 grocer cautioned investors of potential market disruption and a widened profit guidance over 2022 in its preliminary results for the past year.

The supermarket reported a 2.5% rise in Group sales to £54.7 billion compared to £53.4 billion in its last annual report.

Tesco also announced a 2.5% increase in Group sales to £54.7 billion compared to £53.4 billion for 2020 to 2021, alongside an adjusted operating profit surge of 58% to £2.8 billion against 1.7 billion the previous year.

The Group highlighted a 2.2% rise in like-for-like sales across its UK and Republic of Ireland customer base, which the supermarket attributed to strong sales, reduced Covid-19 costs and a return to profitability in Tesco Bank.

Tesco Bank swung back to a profit of £176 million compared to a loss of £175 million, and a revenue of £922 million against £735 million last year.

The company also reported an adjusted diluted earnings-per-share rise of 88% to 21.8p compared to 11.5p.

However, the supermarket caveated its optimistic results with a warning to investors that its profit guidance for the next year would be widened to an adjusted operating profit between £2.4 to £2.6 billion.

Tesco said that it currently anticipates a wide selection of disrupting factors, including post-lockdown customer activity, cost inflation and significant investment to retain market price position.

The grocer announced a 19% dividend increase to 10.9p per share compared to 9.1p the previous year.

Tesco further announced the rollout of £750 million in share buybacks by April 2023, following its earlier £300 million buyback scheme.

“Over the last year, we delivered a strong performance across the Group, growing share in every part of our business,” said Tesco CEO Ken Murphy. 

“We did this by staying focused on our customers and doing the right thing for our colleagues, our supplier partners and the communities we serve.” 

“I want to thank all of our colleagues who did a brilliant job navigating the ongoing pandemic, dealing with the supply chain challenges in the industry and tackling the onset of increasing inflation.”

The Board of Directors of Polymetal has decided to postpone the decision on the final dividend payment for 2021 due to geopolitical tensions announced by the Russian miner on Wednesday.

The company’s latest announcement has led Polymetal shares to lose 4% to 255p further hurting the stock.

The Russia Ukraine war has impacted Russian companies such as Polymetal in the worst ways with sanctions and bans. Significant changes in operating conditions that the group has experienced in recent weeks have been considered by the Board before delivering the company’s latest announcement.

As a result of this analysis, the Board has determined that it is no longer appropriate to recommend or declare the final dividend payment for 2021, which was scheduled to be presented to shareholders for approval at the Annual General Meeting on 25 April 202.

The Board has decided to postpone the dividend payment decision to August 2022 along with the interim dividend decision for 1H 2022 as a result of restrictions on Russian banks and the economy, which is increasing concern about the availability of funds for Polymetal.

Liquidity constraints and supply chain constraints have resulted in higher working capital requirements for the company whilst lower credit availability and a much greater cost of capital have put pressure on the balance sheet.

Due to the various factors standing in the way for the Board, the resolution on the 2021 final dividend payment that was scheduled to be presented to shareholders for approval at the Annual General Meeting on 25 April 2022 will be withdrawn.

A recent addition to the Board, Riccardo Orcel, Chair of the Board said “We have thoroughly re-evaluated the Board’s March recommendation on dividends taking into account recent changes in macro and regulatory environment and unanimously have come to a conclusion that the payment decision should be postponed in order to sustain the stability and liquidity of the business.”

“We will continue to monitor the operating, funding and regulatory conditions in which the business operates, hoping that stability is restored, improving visibility which would allow us to return to our cash distribution policy.”

The international engineering company Meggitt, announced the disposal of Meggitt A/S to CTS Ceramics Denmark A/S for a cash consideration of £59m on Wednesday.

Meggitt has agreed to sell Meggitt A/S to CTS Ceramics Denmark A/S for £59m in cash, subject to net debt and working capital adjustments.

Meggitt A/S produces high-performance piezoelectric ceramic components for medical and industrial use.

The sale is in line with Meggitt’s objective of producing sustainable and innovative solutions for its main end industries of aerospace, defence, and energy, and it comes after a string of sales in the last four years.

Meggitt A/S had gross assets of £23m at the end of the 2021 financial year including goodwill and other intangible assets deriving from the original acquisition of the business and profit before tax of £2.9m.

The completion of the project is contingent on the acquisition of all necessary governmental approvals as well as the fulfilment of other customary closing conditions.

The cash proceeds will be utilised to pay down debt and for general company purposes once the transaction is completed.

Meggitt shares fell 0.1% to 768p after the company announced the disposal of Meggitt A/S to CTS Ceramics Denmark A/S.

Plus500 shares surged 6.2% to 1,571p in late afternoon trading on Tuesday following the company’s report of a 68% spike in revenue to $270.9 million against $161.1 million over its latest quarter.

The trading firm announced an dramatic EBITDA increase of 128% to $161.6 million compared to $70.9 million, and an EBITDA margin of 60% against 44% in Q4 2021.

The company said that it currently expects its financial results for 2021 to perform ahead of market expectations.

Plus500 marked a slight 2% uptick in new customers to 33,740 compared to 33,187 last quarter, alongside a 3% increase in active customers to 176,642 against 171,922.

The firm reported a series of company high points, including its continued expansion into Europe with its new Estonian licence.

The group further celebrated its expansion into Japan through its acquisition of EZ Invest Securities, and its ongoing integration of its US acquisitions.

Plus500 said that its growth was driven by consistently robust levels of customer income, with its lean and flexible cost base supporting its high EBITDA and EBITDA margin figures.

The company also noted the rollout of its Plus500 invest share dealing platform iOS and Android releases, with the platform’s advancement on track according to the group’s management schedule.

The fintech firm added that its cash balance remained strong with $886.6 million, as a result of continued high performance in cash generation across the quarter.

“Plus500 has produced excellent results for Q1 2022, continuing our significant operational and financial momentum over recent years, and validating our clear strategic roadmap,” said Plus500 CEO David Zruia.

“Our on-going investments in developing our position as a global multi-asset fintech group will enable future growth.”

“In particular, we continue to make organic investments in technology, marketing and our people, as well as actively targeting additional acquisitions and initiating potential strategic partnerships.”

Pennon Group shares decreased 0.6% to 1,045p in late afternoon trading on Tuesday, after the company reported that it was on target to deliver financial results in line with management expectations ahead of its financial results for 2021.

The water firm noted its largest environmental investment programme in 15 years worth £1.4 billion across South West Water and Bristol Water, along with its scheduled acceleration and additional spend of £150 million over the current regulatory period, which was funded by re-investment of RORE outperformance to date.

The programme is set to include wastewater investments of £330 million as part of the company’s WaterFit plans for 2022 to 2025 in a move to improve the quality of rivers and seas across the South West waters region.

“Pennon, and other water companies, have come under fire for pollution incidents linked to their sewage operations so news of a £330m investment into their waste water operations will be welcomed by many,” said Hargreaves Lansdown select fund manager Steve Clayton.

The company highlighted its CMA clearance for its Bristol Water and South West Water merger, with the integration process in motion and synergies targeting £20 million per year identified across the company by 2024 to 2025.

Pennon also announced that it had delivered £200 million of its share buyback programme, with fresh phases scheduled to commence subject to its review of potential growth opportunities.

The Group also drew attention to its bill cut for 2022 to 2023, and said that bills were currently lower than they were 10 years ago for South West Water customers.

“Pennon are performing well, with good plans to drive growth in the years ahead,” said Clayton.

“All in all it is a robust performance. With cost pressures emerging, Pennon will be glad to have the opportunity to create offsetting synergies from the Bristol Water integration which should allow them to have a more resilient financial performance than many UK companies will manage in the next few years.”

“Critically, Pennon are targeting real terms increases in their dividends to shareholders.”

Caledonia Mining shares spiked 6.3% to 1,186p in early afternoon trading on Tuesday after the company reported a record quarterly gold production of 18,515 ounces from its Blanket Mine in Zimbabwe.

The mining firm noted a 40% increase in quarterly production on its result of 13,197 ounces produced in Q1 2021, along with an expected reiterated gold production between 73,000 to 80,000 ounces for 2022.

Caledonia Mining highlighted that its gold production had exceeded management expectations, reflecting the increased capacity at its Blanket Mine Central Shaft.

“I am delighted that during this quarter we have set a new first quarter production record,” said Caledonia Mining CEO Steve Curtis.

“The ramp-up in production towards our quarterly target of 20,000 ounces means that we are on track to meet our annual production target.”

Curtis also remembered 35 year old Andrew Clydon Phiri, a Caledonia employee who tragically passed away in an accident at the Blanket Mine Project over the past quarter.

“As previously announced, very sadly during the quarter a fatal accident resulted in the death of a Blanket employee.”  

“We always take the safety of our employees very seriously and I join my colleagues in expressing our sincere condolences to the family, friends and colleagues of the deceased.”