13th Aug 2026 07:57
(Alliance News) - Antofagasta reports a surge in half-year profit though it has trimmed its production forecast for 2026, while gambling company Entain and infrastructure firm Costain have kept earnings guidance unchanged.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called up 0.3% at 10,865.45
GBP: lower at USD1.3480 (USD1.3507 at previous London equities close)
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ECONOMICS
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UK economic growth slowed in the second quarter of the year, as expected, according to numbers on Thursday. The Office for National Statistics said UK gross domestic product advanced 0.4% quarter-on-quarter on the three months to June 30, slowing from a 0.6% rise in the first quarter. The reading was in line with consensus cited by FXStreet. "In output terms, growth in the latest quarter was mainly caused by an increase of 0.5% in the services sector; the construction sector increased by 0.3% and production output showed no growth," the ONS said. Year-on-year, the UK economy grew 1.2% in the second quarter, beating the FXStreet cited forecast of a 1.1% rise, and picking up speed from 0.9% in the first quarter. In June alone, on-month GDP growth was 0.3%, after the UK economy had tread water in May. In April, it fell 0.1% from March. Separate data from the ONS, meanwhile, showed the UK trade deficit widened in June. The trade deficit totalled GBP5.54 billion, stretching from GBP3.46 billion in May and GBP4.11 billion in June of last year.
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BROKER RATINGS
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JPMorgan cuts M&G to 'underweight' (neutral) - price target 335 pence
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JPMorgan cuts Legal & General to 'underweight' (neutral) - price target 270 (285) pence
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COMPANIES - FTSE 100
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Antofagasta says it has increased its half-year dividend after reporting a profit surge. Pretax profit in the first half of 2026 increased 72%, the copper mine says, to USD2.00 billion from USD1.16 billion a year prior. Revenue was up 18% to USD4.48 billion from USD3.80 billion. Earnings before interest, tax, depreciation and amortisation were up 27% to USD2.84 billion from USD2.23 billion. It has lifted its dividend by 81% to 30.1 cents per share from 16.6c. Antofagasta says it saw an increase in the average realised copper price of 36% on-year during the period. "We continue to advance our major projects at Centinela and Los Pelambres towards the completion of commissioning in 2027, which are collectively expected to deliver a 30% increase in copper production and strengthen the long-term resilience of our portfolio. At Zaldivar, we recently announced our investment decision for our transition away from continental water sourcing, which will enhance the long-term sustainability of this operation and enable a potential mine life extension to 2051. Together, these long-term investments position the group well to benefit from growing copper demand, driven by global trends including energy security, electrification, digital infrastructure and AI," Chief Executive Officer Ivan Arriagada says. Looking ahead, it now expects copper output in the range of 625,000 to 655,000 tonnes for the whole of 2026, its outlook cut from 650,000-700,000 tonnes. Los Pelambres has resumed operations after "extraordinarily severe weather conditions in Chile", the miner says. "While there has been no material impact on key equipment and infrastructure, detailed inspections have identified the need for repairs to certain pipeline platforms and water management systems," it adds.
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Entain says it swung to profit in the first half of the year, and the Ladbrokes Coral owner affirms its outlook. Pretax profit in the six months to June 30 amounted to GBP46.4 million, the gambling firm reports, swinging from a loss of GBP66.3 million. Revenue increased 7.4% to GBP2.51 billion from GBP2.34 billion. At constant currency, it grew 5%. "I am pleased with Entain's start to 2026 with strong momentum and volume growth continuing as well as strong player engagement across the group throughout the World Cup tournament. This performance reflects our strengthening operations and focused execution which reinforces the resilience of our globally scaled business and its ability to consistently deliver high-quality growth," CEO Stella David says. Net gains of financial instruments and foreign exchange on loans amounted to GBP31.4 million, swinging from a GBP87.6 million hit a year prior and aiding its bottom line. Underlying earnings before interest, tax, depreciation and amortisation, which would not factor in that item, declined 1.9% on-year to GBP479.3 million from GBP488.7 million. Looking ahead, Entain says it remains "comfortable with market expectations" for underlying Ebitda, which sit at the midpoint of its GBP910 million to GBP960 million guidance range for the whole of 2026. It still expects full year online net gaming revenue growth between 5% and 7% for the full year. Entain has lifted its interim dividend by 5.1% to 10.3p per share from 9.8p.
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COMPANIES - FTSE 250
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Infrastructure firm Costain says its annual forecast is unchanged, after "another strong performance" in the first half of the year. Pretax profit in the first half ended June 30 rose 5.5% to GBP19.2 million from GBP18.2 million, a year earlier, with revenue up 3.4% to GBP543.1 million from GBP525.4 million. "I'm pleased to report another strong performance in the first half of 2026, putting us on track to deliver FY26 revenue, operating profit and margin in line with the board's expectations and a sixth consecutive year of profit growth. Our first half performance, with revenue growth and further growth in operating profit, and our robust balance sheet, has supported a significant year-on-year increase in shareholder returns," Chief Executive Officer Alex Vaughan says. Costain says it has doubled its half-year dividend to 2.0p per share from 1.0p. "We expect to remain highly cash generative and to deliver FY26 revenue, adjusted operating profit and adjusted operating margin in line with the board's expectations," Costain says, adding that it expects an increase in revenue in the second half compared to the first.
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OTHER COMPANIES
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Business and consumer lender Secure Trust Bank reports a rise in half-year profit, and it has left its guidance unchanged. Secure Trust says pretax profit in the first half of 2026 rose 41% to GBP31.4 million from GBP22.3 million a year prior, with operating income declining 21% to GBP83.8 million from GBP106.3 million a year prior. "I am pleased with the group's growth in lending, profits and returns in the first half of 2026, which already reflects strong execution against our plans and reinforces confidence in our medium-term targets. The actions we have taken to reposition the group for sustainable growth and improved returns are delivering results and strengthening our ability to serve customers better and create long-term value for shareholders," CEO Ian Corfield says. Secure Trust has upped its interim dividend by 5.1% to 12.4p per share from 11.8p.
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Online retirement savings provider PensionBee reports improved half-year results, and an increase in assets under administration. Its pretax loss in the first six months of 2026 narrowed to GBP2.9 million from GBP5.1 million, PensionBee says, as revenue increased 40% to GBP26.4 million from GBP18.9 million. Assets under administration were 37% higher at GBP8.6 billion from GBP6.3 billion a year prior, supported by GBP493 million of net flows. Net flows picked up from GBP423 million a year prior.
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By Eric Cunha, Alliance News news editor
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M&GLegal & GeneralEntainAntofagastaCostain GroupSecure Trust BankPensionbee