Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. DX Group results significantly ahead of expectations
Freight and logistics companies tended to fare well during the pandemic and are now receiving a further boost off the back of a shortage of supply underpinning pricing. DX Group [LON:DX], which published its final results for the year to 3rd July this morning is no exception, reporting results significantly ahead of expectations, with highlights including year-on-year revenues up 16% and a 55% increase in EBITDA. The dividend hasn’t been reinstated but management is keen to do so as appropriate and although staffing challenges remain, the company is confident of winning further market share.
#2. Go-Ahead Group continues to face challenges
Transport operator Go-Ahead Group [LON:GOG] has published an update on current trading this morning. The company is evidently still facing challenges when it comes to getting passengers back onto services and whilst there are some brighter spots – for example London & International bus has secured over 95% of full year revenues already – elsewhere, passenger numbers are stagnating as COVID government support packages start to be scaled back. There’s also the fall-out from the South Eastern rail franchise that could still come with a weighty financial penalty, but the government will find itself in a tight spot here if it attempts to cut too deep into a company that provides a critical part of the UK transport infrastructure. Full year results to 3rd July are expected on 16th December.
#3. Argo Blockchain rise in underlining prices boosts fiat value
Argo Blockchain [LON:ARB] has published its monthly mining report for October this morning. 167 coins were mined during the month, up 2 from the September reading, but the rise in underlying prices means that equates to more than a 30% jump in fiat value of the process. Margins remain impressive, having risen to 86%. Whilst investors may well be keen to applaud this, it underlines the challenge faced by the industry when underlying prices fall – and potentially energy costs increase further, too.