Wood Group flags fall in earnings, Rio Tinto to review destruction of heritage site

Stocks to watch

Wood Group said it expected a 19% fall in first half core earnings as the coronavirus pandemic hit the oil and gas sector. The energy industry engineer said adjusted earnings before interest, tax, depreciation and amortisation in a range of $295m - $305m and operating profit before exceptionals of around $80m - $90m. The order book at the end of May was $7bn, down about 11% since December 2019, of which about $3.5bn was due to be delivered in 2020, Wood said on Friday.

Rio Tinto has launched an internal review into its decision to destroy the Juukan Gorge Aboriginal heritage site. The miner has appointed Michael L'Estrange, a former Australian high commissioner to the UK, to lead the review into the destruction of the site in Western Australia. L'Estrange, a Rio Tinto non-executive director, will examine the company's heritage management processes and recommend governance improvements. The report is scheduled for October.

Synthomer has completed the pricing of €520m (£468.44m) in 3⅞% senior notes due 2025, it announced on Friday. The FTSE 250 company said the proceeds would be used to repay borrowings under its 2019 bridge facility, which was introduced as part of the financing arrangements for the acquisition of Omnova Solutions, and to pay certain costs, fees and expenses related to the offering of the notes.

Newspaper round-up

Bicycle sales could be set to fall by 10% this year despite a surge in demand during the coronavirus lockdown. Spending on bikes is expected to drop to £842m from £940m last year, when 2.5m new bikes were saddled up in the UK, according to market research firm Mintel. Mintel said the switch from public transport and cars to two wheels during the coronavirus pandemic was likely to be offset by a downturn in consumer spending prompted by the likely recession caused by the lockdown. – Guardian

Homeworking has become a way of life for almost half of British workers, according to official figures that show a jump in the number of people working away from their office or factory. With ministers increasingly nervous about the outlook for the economy, the Office for National Statistics said 49% of workers reported working from home at some point in the seven days to 14 June, up from 41% the previous week. – Guardian

Just 11 of the almost 3,000 equity partners at the Big Four accounting firms are black, forcing bosses to promise a push for diversity in their senior ranks as the Black Lives Matter movement turbocharges calls for racial equality. That equates to less than 0.4pc of the total, compared to 3.3pc of the UK population, the Telegraph can reveal. – Telegraph

It is probably easier to list the casual dining chains that have not hired restructuring advisers than those that have. Pizza Express, Prezzo and Gourmet Burger Kitchen are among the household names to have appointed firms to help them consider “options” as they battle to survive — and more are likely to follow. Prezzo, an Italian concept with about 180 restaurants, has taken on FRP Advisory to help it navigate the Covid-19 minefield, while GBK, whose South African parent, Famous Brands, withdrew all financial support for the chain of 62 burger joints in April, is relying on Deloitte for advice. – The Times

Consumer confidence rebounded in June but households are still anxious about the economy, according to a survey. GFK’s confidence index jumped 6 points to minus 30 as the lockdown was eased and people returned to work. The index remains close to its lowest level since the financial crisis in 2008 after crashing in April. The index fell from minus 9 to minus 34 in the weeks after lockdown was imposed. – The Times

US close

Stocks on Wall Street finished in a mixed state on Thursday, with the Dow Jones Industrial Average closing down 0.15% at 26.080.10.

The S&P 500, meanwhile, managed gains of 0.06% to 3,115.34, and the Nasdaq Composite was 0.33% firmer at 9,943.05.