Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Deliveroo increases full year guidance
Deliveroo LON:ROO has published a Q3 trading update noting gross transaction values up by more than 50%, giving the company the confidence to increase guidance for the full year to growth of 60-70%, up from the previously stated 50-60%. The platform now claims 7.5 million active customers per month, with each ordering on average 3.3 times. Although that number has crept a little higher, the food delivery space see it as a holy grail as with consumers each having almost 100 “meal opportunities” per month, there’s plenty of scope to deliver more.
#2. SEGRO expansion plans continue
Commercial landlords SEGRO LON:SGRO have published a trading update for the period 1st July to 19th October. The company notes it has had an active and successful third quarter with market conditions remaining highly supportive. Expansion plans continue apace and there appears to be little in here that could knock investor confidence unless there’s any concern over the realignment strategy that is leading to some disposals. That said, management seem to have been making the right calls so far.
#3. Balfour Beatty secures sustainable linked loan
In light of yesterday’s government announcements over greening the economy, Balfour Beatty’s LON:BBY note this morning of having secured one of the largest sustainable linked loans in the UK construction sector seems worthy of note. It has converted a £375m revolving credit facility to incentivise the group to deliver annual measurable performance improvement in carbon emissions, social value generation and an independent ESG score. Depending on the performance, the credit margin can be increased or decreased accordingly. It may seem like a comparatively small step, but the company is aligning itself with what could be seen as the new funding cycle.
