Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
AJ Bell
There’s a trading update out from AJ Bell LON:AJB this morning, covering the first half of the current financial year. Customer acquisition has remained strong in recent months with elevated levels of D2C transactions being reported. The company notes that volumes are expected to start moderating in the second half, revenues for the full year are expected to be at least £6m higher than the current consensus forecast.
Cerillion
An eye-catching headline from Cerillion LON:CER, the AIM listed billing and charging CRM provider. They have signed their largest ever single contract, worth $18.4m with a Latin American company. This is however spread over 10 years but coupled with a £2.7m extension on a European contract, the company expects to beat the current management forecasts for pre-tax profits in the year to September 30th.
Ten Entertainment Group
Ten Entertainment Group LON:TEG operates a network of family entertainment venues across the UK. Full year results for the 52 weeks to December 27th are out today and the blunt reality is that during that period, there have been 25 weeks of closures and 16 weeks of disrupted operations owing to COVID. Having posted a £15m profit in 2019, this tipped to a £19m pre-tax loss, but the business is hoping for a brighter future. All venues should reopen in mid-May, there’s sufficient liquidity headroom for the remainder of the year and the company is confident that demand will be strong once reopening takes place. Understandably, owing to the uncertainty, there’s no financial guidance, but the company’s performance will be interesting to watch through the summer.
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