Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Associated British Foods operating profit expected to be above last year
Associated British Foods LON:ABF has this morning published a pre-close trading update ahead of full year results which will be issued on November 9th. Investors will be cheered by news that the profit reading for Q4 is expected to exceed management expectations, with margins at Primark being up, offsetting lower sales volumes. Sugar also delivered a much improved performance for the year, meaning the outlook for the Group’s adjusted operating profit, stated before repayment of job retention monies, is now expected to be above last year excluding the benefit of the 53rd week this year.
#2. ITM Power sales up 30%, losses down 9%
ITM Power LON:ITM has full year results out this morning, showing sales up 30% and operational losses down by 9%. The company has a growing backlog of work and the tender pipeline is almost twice as strong as it was a year ago. This is giving the company confidence over the outlook and the recent fundraising means cash & equivalents worth £176m are on the balance sheet. This however remains something of an evolving company – events like COP26 in Glasgow will be in focus, but governments for now appear more centred on post-pandemic recovery.
#3. Rolls Royce completes sale of AirTanker Holdings
Finishing off with a short note from Rolls Royce [LON:RR] who have this morning announced the completion of their stake in AirTanker Holdings for £189m. This was a joint venture, supplying the Ministry of Defence with a series of transport and ancillary services, but the disposal forms part of the company’s initiative to become less disparate. The ambition is to realise £2 billion from such disposals in order to rebuild the balance sheet and return to an investment grade credit profile.
