Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Associated British Foods
There’s a pre-close trading update out from Associated British Foods [LON:ABF] this morning. Q4 trading – which formally concludes at the end of the week – is well ahead of expectations both in food and Primark. Sugar is as expected delivering a much-improved profit year-on-year, whilst over the last 4 weeks, Primark’s UK stores have recorded their highest ever value and volume of sales for the time of year. COVID has taken a big toll here obviously however, so whilst the fashion arm expects to post adjusted profits at the top of the previously stated £300m-£350m range, that’s well below the £913m from last year.
There’s an interesting note out from Amigo Holdings [LON:AMGO] this morning, playing down social media speculation that the company’s original founder – who quit the board in March 2020 – is plotting a return to the company. Apparently the plan is to buy up 29% of the business and reappoint himself as CEO. The regulatory filing points out the flaws in this plan, but this is a battle that could run for some time.
Main board news is looking limited today, so a quick diversion off to AIM-listed Kodal Minerals [LON:KOD] who have published a multi-faceted note out this morning, with one point of specific interest being a comment in relation to the share price’s recent moves. The stock almost trebled in value last week and the business is hanging this off the signing of a recent MoU with a Chinese partner. The note is keen to caution that there can be no guarantees over where this arrangement will lead.
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