Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Berkeley Group
There’s limited news on the agenda today, but builders Berkeley Group LON:BKG have published a trading statement. Despite the start of the COVID-19 pandemic coinciding with the start of the financial year, trading has been resilient and the company remains on course to deliver £500m worth of pre-tax profits and remains committed to the annual shareholder returns programme of £280m p.a. The statement was perhaps triggered by others in the sector pausing dividend payouts but the company also notes that it is sitting on in excess of £1bn worth of surplus cash.
Centrica
A short note out from Centrica LON:CNA owned British Gas who have acquired the customer book of Robin Hood Energy. The company, run by Nottingham City Council, was the UK’s first not for profit energy supplier, but had made losses for each of the last five years. Sadly this means 230 job losses, but there’s a salutary lesson when it comes to capitalism tucked in here, too.
Ryanair
Ryanair [LON:RYA] has successfully completed a EUR400m share placing overnight, with the new issuance being offered at a 2.6% discount to last night’s closing price. Clearly the aviation industry is having a torrid time, but the funds are aimed at derisking debt repayments and enabling the business to capitalise on post COVID-19 growth opportunities.
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