Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
UK food producer Cranswick [LON:CWK] has published a Q1 trading update this morning, covering the 13 week period to June 27th. The shift to in-home consumption has served to benefit the business, with revenues up almost 25% on the previous year. Even removing the effect of recent acquisitions, growth still comes in up by almost 20%. The note cautions that there’s an expectation of normalisation through the latter part of the year as more consumers return to eating in restaurants, but with some debt having been paid down and CapEx forecast to be lower than last year, the business seems well positioned, at least for the short to medium term.
There’s another short update out from Amigo Holdings [LON:AMGO], the guarantor loans company. The business has been struggling in the wake of complaints over insufficient checks being made and new loan issuance is on hold, but this morning they have announced another extension of the securitisation facility performance trigger waiver period to 18 December 2020. That’s significantly longer than the last extension of just a few weeks and has the potential to help shore up sentiment amongst investors. What happens to this business in the longer term remains to be seen but with £145m worth of unrestricted cash held at the end of last month, there are few liquidity concerns for now.
This last one is a bit left field but it’s slim pickings on a Monday, mid-August. Falanx Group [LON:FLX] is an AIM-listed cyber security company with a £6m market cap. They have announced a contract for the provision of cyber security services to one of the major suppliers of services to the UK public sector. Details are scant in terms of who the customer is and what sort of revenues can be expected, beyond the note stating they are modest right now but are expected to grow. However with cyber security set to remain in demand and the prospect of ‘bigger’ governments in a post-COVID world, this combination could be one to watch.
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