UK GDP Bounces Back, Expected to Hit Pre-Pandemic Levels in 1Q 2022

08/12/2021 | 04:19am

UK GDP Bounces Back in 2Q, Expected to Reach Pre-Pandemic Levels in 1Q Next Year

0750 GMT - After lockdowns at the start of the year temporarily threw the U.K. recovery into reverse, the latest data show that economic activity rebounded sharply through the second quarter as restrictions were eased, Berenberg senior economist Kallum Pickering says. Real GDP expanded by 4.8% quarter-on-quarter in 2Q, more than offsetting the 1.6% decline during 1Q. Looking at the monthly estimates, real GDP in June was just 2.5% below its pre-pandemic level in January 2020. "Despite persistent virus-related uncertainties and intensifying supply-chain issues that are holding back production, the U.K. remains on track to fully recover from the pandemic shock by 1Q 2022," Berenberg forecasts. (

Companies News: 

TUI AG 3Q Returned to Cash Flow for First Time Since Pandemic; 3Q EBIT Loss Halved

TUI AG said Thursday that it returned to cash flow for the first time since the coronavirus pandemic as it reported a near halved loss before interest and taxes.


Aviva 1H Operating Profit Rose; Launches Share Buyback Program

Aviva PLC reported on Thursday a swing to a net loss for the first half of 2021 and a rise in operating profit, and said that it is launching a share buyback program.


Entain 1H Pretax Profit Rose; Backs Full-Year View

Entain PLC said Thursday that its first-half profit and revenue rose and backed its full-year earnings guidance.


Glanbia Launches EUR50 Mln Share-Buyback Program

Glanbia PLC said Thursday it is launching a 50 million euro ($58.7 million) share-buyback program in order to reduce its issued share capital.


Empiric Student Property Swung to 1H Pretax Profit

Empiric Student Property PLC said Thursday that it swung to a pretax profit in the first half of the year, and it will pay dividends in the fourth quarter.


Just Group Swung to a 1H Pretax Loss; Adj Operating Profit Rose

Just Group PLC on Thursday reported a swing to a pretax loss for the first half of the year, as well as a rise in operating profit, and said it is confident in its outlook.


STM Group Names New CFO; Makes COO Redundant in Board Shakeup

STM Group PLC said Thursday that it continues to perform in line with its full-year expectations, and that it is restructuring its board after reviewing its operating model.


Global Petroleum Raises GBP1 Mln to Part-Fund New Lease Commitments

Global Petroleum Ltd. said Thursday that it has raised 1 million pounds ($1.4 million) via a share placing and will use the money to part-fund new license commitments as well as providing working capital towards new strategic options.


John Lewis of Hungerford Now Expects FY 2021 Pretax Profit

John Lewis of Hungerford PLC said Thursday that it has beat its own views, as it now expects to report a pretax profit for fiscal 2021 .


Checkit 1H Revenue Rose 13% on Recurring Revenue Growth, One-Off Project

Checkit PLC said Thursday that its first-half revenue rose 13%, driven by growth in recurring revenue and a one-off project in the first quarter.


Cineworld 1H Pretax Loss Narrowed; Considers U.S. Listing

Cineworld Group PLC said Thursday that its first-half loss narrowed, although its underlying performance worsened, hit by Covid-19 restrictions; and that it is considering listing its shares in the U.S.


MJ Hudson 2H Underlying Revenue Grew Significantly

MJ Hudson Group PLC said Thursday that underlying revenue grew in fiscal 2021 year, and added that it expects to post full-year results in line with market expectations.

--- Expects to Incur Ebitda Loss for Rest of 2021 Group PLC said Thursday that it expects to incur Ebitda losses throughout the rest of this year due to the current travel market, but these should be broadly offset by synergies from its merger with TravelSupermarket.


Mears Group Swung to 1H Profit, Raises 2021 Guidance

Mears Group PLC said Thursday that it swung to a profit for the first half of the year and raised its full-year outlook while restoring dividend payments.


Hawkwing Raises GBP16.5 Million

Hawkwing PLC said Thursday that it raised 16.5 million pounds ($22.9 million) through the issue of convertible unsecured loan notes.


Abingdon Health FY 2021 Revenue, Adjusted Loss at Lower End of Guidance

Abingdon Health PLC said Thursday that its revenue more than doubled in fiscal 2021 and that it booked an adjusted earnings loss, in line with the lower end of guidance given in April.


R.E.A. Holdings Draws Down New Loans After Sealing Agreement With Bankers

R.E.A. Holdings PLC said Thursday that new loans and a working capital facility that its PT REA Kaltim Plantations subsidiary agreed to with bankers have been drawn down after all but one of the conditions were met.


Tribal 1H Net Profit Rose 17%; Sees 2021 Performance Slightly Above Views

Tribal Group PLC on Thursday reported its net profit rose 17% in the first half of the year, and said it expects full-year performance slightly above market expectations.


Stock Spirits Shares Jump After Agreeing to GBP767 Mln Takeover

Shares of Stock Spirits Group PLC jumped 43% in early trade Thursday after the company said that it had agreed to a 767 million pounds ($1.06 billion) takeover from Sunray Investments Luxembourg SARL, a company backed by CVC Advisers Ltd.


Serinus Energy Shares Fall on Romania Well Suspension; 1H Loss Narrowed

Serinus Energy PLC shares fell Thursday after it said it has suspended a Romanian well after attempting a testing program, though it separately said its first-half net pretax loss narrowed.


Empresaria Shares Rise on Swing to 1H Profit, Improved Full-year Views

Empresaria Group PLC shares rose Thursday after it said that it swung to a pretax profit in the first half despite a slip in revenue, and expects full-year profit to exceed last year and current market expectations.


MTI Wireless Edge Wins Naval-Antenna Contract

MTI Wireless Edge Ltd. on Thursday said it has secured an agreement to develop and produce naval antennas for Canada-based Ultra Electronics TCS Inc.


IDE Group CFO Resigns After Less Than Four Months

IDE Group Holdings PLC said Thursday that Chief Financial Officer David Templeman has resigned with immediate effect, after less than four months in the role.

Market Talk: 

Sterling Edges Lower After U.K. GDP Data

0730 GMT - Sterling edges slightly lower after data showed U.K. gross domestic product expanded 4.8% in the second quarter versus the previous three months. Strong growth was expected after the easing of some coronavirus restrictions, but the outlook for the third quarter may not be so rosy, ING says. "We think the July and August GDP readings will average at roughly 0.2-0.3%, which translates into overall third-quarter growth in the region of 1.5%--quite a bit lower than the 3% figure the Bank of England is penciling in," the firm says. GBP/USD is last down 0.1% at 1.3863, while EUR/GBP is up 0.1% at 0.8467. The impact of the data is limited, however, and ING currency analysts say EUR/GBP could edge toward 0.8400 as the euro weakens. (

Aviva 1H Operating Performance Was Mixed, but Buyback Program Seen as Priority

0735 GMT - Aviva's operating profit performance for the first half of 2021 is somewhat mixed, but all eyes will likely be on the capital management plans, Jefferies says. The U.S. bank notes the FTSE-100 insurer's return of at least GBP4 billion to shareholders by the first half of 2022 and says that it expected this to take several years. Jefferies also notes the fact that Aviva plans to start with a GBP750 million share buyback program immediately, and adds that "the size of the capital return is less important than the rapid pace of return." Shares are up 2.5% at 56.50 pence. (; @sabelaojeaguix)

Contact: London NewsPlus, Dow Jones Newswires; +44-20-7842-931

(END) Dow Jones Newswires

08-12-21 0418ET

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