Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
AA
Half year numbers from the AA [LON:AA] have been published this morning and these may have shown just a modest uptick in revenues but this has all been added straight onto the bottom line. An £11m improvement in sales has translated into a £14m profit hike, with performance being in line with expectations. Having stabilised the number of roadside recovery members and with insurance performing well, the company expects to meet target EBITDA growth for the full year.
Galliford Try
Galliford Try LON:GFRD has announced a contract win for road development worth just under half a billion pounds this morning. The news – coming at a time when Bovis Homes is attempting to take over Galliford’s house building operations – seems to be well timed. Shares could punch higher this morning, despite the relatively modest size of this deal.
Ryanair
Low cost airline Ryanair [LON:RYA] has reached agreement with a significant majority of its UK based cabin crew over a 4 year collective labour agreement. The company’s share price saw a rather muted response to yesterday’s demise of Thomas Cook rising just 0.85% so news of this deal may lend a little more support, although with this only covering the UK arm of cabin staff, the airline still faces some potential employment challenges for elsewhere in Europe.
