Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Bunzl benefitting from diversification
Services group Bunzl [LON:BNZL] has this morning published half year results for the six months to June 30th. Even though economic reopenings have occurred at different paces worldwide, this diversification appears to have benefitted the company, with revenues and profitability both posting meaningful improvements. The company does acknowledge that some of this upside has come about off the back of price inflation in COVID-19 related products and that’s already normalising. With underlying revenues being just 5.7% ahead in H1 from 2019, Investors who were hoping for more of a rebound could be left disappointed.
#2. Computacenter profits to come in at least 10% above market expectations
There’s an unscheduled trading update out from Computacenter [LON:CCC] this morning. Despite the release of a positive update on July 21st, only a small number of analysts covering the company have upgraded their forecasts, leaving market expectations sitting below those of management. The note adds that even with a flat performance in H2 ’21, profits would still come in some 10% ahead of consensus market expectations. Interim results are schedule for September 9th.
#3. 88 Energy placing to fund next 12 months
Relatively slim pickings after the holiday weekend but 88 Energy [LON:88E], a regular from our AIM column, has this morning announced a £10.6m placing. The company has about £7m cash in hand and zero debt, having sold some future tax credits earlier in the year. The offer is at a 12.5% discount and could well irk some investors, but the company notes that this will provide sufficient funding for the next 12 months as it seeks some 652 million barrels of oil.