Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Boohoo Group
High streets across the country may be headed for ruin, but Boohoo LON:BOO has this morning announced it has secured a long term lease on a new warehouse in Daventry. This added capacity will give the company the ability to deliver net sales across its four UK sites of some £4 billion a year. The deal is expected to secure 500 jobs and could create an additional 1000 jobs in the longer term as capacity increases.
Avon Rubber
There’s a half year trading update out from Avon Rubber LON:AVON and the mood remains upbeat. H1 revenues are expected to come in at $122m, against a 2020 figure of $87m, although $20m of that is off the back of acquisition news. Taking into account the current order book of $155m and expected sales for H2, the board is confident that it can achieve full year expectations.
Frasers Group
Ending the week with a bleak note from Frasers Group LON:FRAS, which believes that further restrictions and lockdowns on the UK economy are inevitable, given the narrative that continues to emerge from the government over normality being “some way off” combined with the risk of a third wave of COVID. As a result, the company is bracing investors for the idea that it will make use of a series of non-cash impairments which could exceed £200m, double the £100m touted around six weeks ago.
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