Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Compass Group
There’s a pre-close trading update out from caterers Compass Group [LON:CPG] this morning. This data is interesting as it gives some insight into the reopening of various sectors of the global economy, as the numbers are split out by industry and geography. The reality is that business remains depressed across the board. Healthcare work has proved resilient and education has made a meaningful bounce back over the year although Q2 – the three months to March 31st – is still down some 33%. From here, comparatives will become kinder, so the focus will very much be on margins. The company notes it is set to deliver margins in excess of 7% before returning to pre-COVID volumes.
Cineworld Group
Cineworld [LON:CINE] has announced, alongside some predictably grim results this morning that it has raised a further $213m worth of liquidity via the sale of a convertible bond. This, along with expected US government funding, would be sufficient to give a liquidity runway through to the year end in the event cinemas remain closed. Given the more upbeat assessment we saw a few days ago, some may question whether the move was necessary, but this obviously provides some short term security. To illustrate just how bleak the numbers were, a pre-tax loss of $3bn has been posted, against $212m profits a year earlier.
CMC Markets
There’s a pre-close trading update out from CMC Markets [LON:CMCX] this morning, which provides an update on Q4 performance and notes there’s confidence in the outlook for the next financial year. As a result of the strong performance, operating income for the year ending March 31st is now expected to come in slightly above the previously forecast range, with full results set to be released in June.
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