Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
There’s a trading update out from Berkeley Group [LON:BKG] this morning, covering November through to February. Expectations remain unchanged for full year profits to be comparable with the number posted for the previous period, although the value of reservations for the year is set to be around 20% lower. That’s due to a reprofiling of the timing on new developments but despite the current volatility the company remains committed to returning £280m per annum to shareholders, as it has done sine 2016.
Burberry Group [LON:BRBY] has issued an unscheduled trading statement today, ahead of the financial year end on March 27th. A strong rebound since December means that the company now expects revenue and profits to both come in ahead of consensus expectations. Store sales for Q4 are set to be 28%-32% higher than last year, whilst full year revenues will be off between 10% and 11%. Preliminary results will be out on 13th May.
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There’s news of a series of cap raises this morning and one that caught the eye was from the insolvency specialists Begbies Traynor [LON:BEG]. The company has been making acquisitions and regardless of the strength of any economic recovery should be poised to benefit from the unwinding of government support packages. Whilst these are keeping some sound companies trading through the COVID-19 pandemic, it’s also hampering the natural cycle of business failures. Pent up demand is likely to see numbers spike here, but that’s unlikely to be before the Autumn. The offer was significantly over-subscribed and shares sold at a modest premium to last night’s closing price.
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