Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Costain Group on course to meet full year expectations
Construction and engineering firm Costain Group LON:COST has published interim results this morning. Profitability has doubled from the position a year ago, although this was in line with management expectations. The company’s cash position is up by around 10% and they also note a high level of tendering activity being underway, in line with the market opportunities that exist for projects ranging from decarbonisation to regional levelling up. The board notes they are on course to meet full year expectations.
#2. Rank Group notes HMRC has decided not to appeal tribunal decision
There’s a short note out from Rank Group LON:RNK this morning, acknowledging that HMRC has decided not to appeal a decision handed down by a tribunal regarding VAT paid on slot machine income. There has been an ongoing dispute between the two parties regarding this and the sum involved is said to be in the region of £80m. The company has seen profitability hampered by lockdown restrictions over the last year closing many of its venues.
#3. Bradda Head expects drilling results by the end of October
Bradda Head LON:BHL, the recently listed AIM lithium development group, has this morning published an update on its drilling program in Arizona. The news seems to be something of a mixed bag, with results slow to materialise and only modest improvements being seen so far when compared to 2018. The company also experienced mechanical problems with a drilling rig, which has now been resolved and expects the drilling program to complete by the end of September with full results by the end of October. It anticipates that these results will “potentially lead to both an increase in resource size and increase in confidence classification” but will investors bite now, or wait for those assays to come back in a couple of months time?
