Three things you need to know in the financial markets this morning from investment writer, Tony Cross
AJ Bell
There’s a short update from AJ Bell this morning around their proposed listing of shares on the London Stock Exchange. Admission is expected to be before the year end, but this release includes details that existing retail customers will be given the option to apply for a minimum of £1,000 worth of shares as part of the offer process. The indicative price range for the shares will be set in due course.
Babcock
For a second consecutive Monday, Babcock has felt obliged to issue an announcement to the market, quashing what it sees as idle speculation over the company’s situation. Last week it was in response to a report by an entity known as ‘Boatman Capital’, whilst this morning’s statement refers to a Sky News report regarding exceptional items which seem likely to be included in Wednesday’s half year numbers. The company points out that whilst it is exiting a number of small, low-margin businesses, there’s no expectation of a material cash cost off the back of this.
MITIE Group
MITIE Group has this morning announced that it is selling its Social Housing business to Mears Group for £22.5 million, plus deferred payments of up to £12.5 million over the next two years. The move will allow Mitie to focus on its core business, with the proceeds being used to strengthen the balance sheet, pay down pension liabilities and reinvest cash into the core business.
