Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
CMC Markets
Full year results are out from CMC Markets LON:CMCX this morning, with the financial brokerage posting a record performance. Whilst lockdowns have boosted trading volumes globally, the company notes it believes existing client activity levels are likely to be sustainable rather than transient and with activity up by 50%, that’s a significant call to make. Pre-tax profits jumped 127% and investors are being rewarded with a more than doubling of the dividend to 30.6p per share.
ITM Power
A trading update from ITM Power LON:ITM, the energy storage and clean fuel company, has been published today. Work in progress has jumped by 62% but there’s also a growing order backlog which in April stood at £154m worth, up from £52m a year ago. Losses for the full year are expected to remain in line with management expectations but the company is well capitalised with a £176m cash position. There’s also optimism that the combination of post-pandemic rebuilding alongside the greater focus on green energy leaves the sector and the company well positioned for future growth.
DFS Furniture
DFS Furniture LON:DFS has published a pre-close trading statement ahead of the year end later this month. The company has benefitted from pent-up demand, noting that the 10 week period in Q4 to date saw sales some 92% higher than they were in 2019 (comparable, pre-lockdown period). The revenues from these sales however won’t be recognised until FY22, with the company noting that this number is now expected to be materially ahead of analyst consensus.
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