Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. easyJet gives some cause for optimism
There’s a trading update out from easyJet [LON:EZJ] this morning covering the quarter to June 30th. The airline industry has had a torrid time during the pandemic and easyJet is no exception, but there are some bright spots in the numbers, including average weekly fixed costs plus capex coming in at £34m vs the £40m given in guidance six months ago, whilst capacity for the coming quarter is set to be 60% of 2019 levels as the carrier looks to make the most of the limited restart for travel. It’s not all good news however with passengers – especially in the UK – booking nearer to departure, where only 44% of the Q4 schedule has been sold so far, compared to 69% at this point in 2019. Given the uncertainty, no further guidance is available, but there’s perhaps some cause for optimism here.
#2. AG Barr full year profits to be ahead of expectations
AG Barr [LON:BAG], makers of Irn Bru, have published a trading statement this morning, advising that full year profits to January 2022 are now expected to be ahead of previous forecasts. Better than expected trading thanks to a variety of factors – including customers in the hospitality sector restocking – is bolstering performance. Further details will be released with interim results on August 3rd.
#3. Begbies Traynor revenues ahead of expectations
Full year results from insolvency specialists Begbies Traynor [LON:BEG] show a 20% uptick in revenues for the 12 months to 30th April. This is ahead of expectations which is perhaps unsurprising given the company’s own posturing on performance. This had hinted that government support through the pandemic was keeping some companies – which should have naturally failed – above water. The company expects to see further upticks in business as government support measures are withdrawn in the second half of its trading year.
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