Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. ASOS CEO to step down with immediate effect
A number of changes in the boardroom have been announced at ASOS LON:ASC and the market may well be caught off guard by this news. The capital markets day planned for this Thursday has been pushed back to early November and whilst Chair Adam Crozier’s decision to move on had already been announced – he’s to be replaced by a current NED, Ian Dyson – it’s the stepping down with immediate effect of CEO Nick Beighton that could deliver a shock. A search is commencing to find a successor and Nick will remain available to the board until the year end in order to facilitate a smooth transition. This news accompanied some fairly strong full year results for the 12 months to 31st August with revenues up by 20% although gross margins were eroded as a result of Brexit duties, rising freight costs and currency headwinds.
#2. Good Energy expectations unchanged, dividends to be resumed
Good Energy LON:GOOD which finally saw off a lengthy hostile takeover bid at the end of last week has this morning has published a trading update for the 9 months to end of September. Despite low wind speeds through Q3 impacting power generation, the company’s full year expectations remain unchanged and with demand being 90% hedged for the next 12 months, it is also well insulated against the current volatility this market is seeing. Dividend payments to shareholders have also resumed.
#3. LendInvest assets under management up by 31%
Recently listed LendInvest LON:LINV has this morning published a H1 trading update covering the six months to 30th September and reporting sustained progress across all parts of the business, with assets under management up by 31% from a year earlier. The company sees the UK’s property finance market as being one of the few verticals yet to be disrupted by technology and notes some key strategic initiatives from recent months, including a facility to assist with the retro-fitting and renovation of the country’s ageing housing stock. There is arguably a risk here if we do see a collapse in property prices – something that will perhaps be addressed in interim results due to be published in early December.
