Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. A.G. Barr full year profits expected to be ahead of current expectations
There’s a trading update out from A.G. Barr LON:BAG this morning, the makers of Irn Bru. Full year profits are now expected to be ahead of current market expectations as a result of positive momentum being maintained over the last couple of months, both in hospitality and “on the go” sectors. The company notes that recent product innovations have exceeded expectations and whilst risks remain in the evolving COVID-19 situation, this momentum is tipped to continue into the new year. A further update is due in February 2022.
#2. McColl’s Retail to extend the conversion of stores into “Morrisons Daily”
McColl’s Retail Group LON:MCLS, the UK’s leading community retailer, has announced that terms have been agreed with WM Morrison to extend the conversion of stores into “Morrisons Daily” to a further 100 properties, taking the total to 450 by the end of next November. The company also notes that it has reached agreement with lenders to defer the next two banking covenant tests as it looks to realign financing facilities, with the convenience stores expected to facilitate a quicker payback of the investment in refurbishment costs.
#3. Hammerson is working to dispose of non-core assets
Hammerson LON:HMSO, whose share price is languishing close to nine month lows, has issued a response to press speculation this morning that it may be close to disposing of its stake in the Silverburn development near Glasgow. The company is working to dispose of non-core assets and has confirmed that the number being discussed here is £140m, which is more than 10% of the market cap. Obviously the usual disclaimers apply over no guarantee that the deal will complete but this could help calm the stock in what could be a jittery start.
