Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Fastjet
There’s a stark warning from Fastjet [LON:FJET], the African low cost airline, published today. Having halted operations at the start of April, the company believes that it only has sufficient cash left to continue operations through to the end of August. The company notes that flights must restart by early September or it must be able to access funding via the Reserve Bank of Zimbabwe to remain a going concern in the latter part of the year.
CMC Markets
CMC Markets LON:CMCX has published a trading update this morning covering the first quarter of the financial year. Coming off the back of solid full year results, the company notes that net operating income for the three month period will exceed that recorded for the first half of the previous financial year. Even in the event of a return to more normalised client trading activity, net operating income for the full year will now exceed the upper end of the current market consensus.
Rank Group
There’s an update out from Rank Group LON:RNK this morning, the operator of Mecca bingo clubs. They will start reopening from this weekend in line with government guidance, although the note adds that some venues will open later whilst others remain under review for viability. The company’s Grosvenor casino estate remains shuttered and talks over a restart for the sector remain ongoing with authorities. Some reopening costs have been pushed into the previous financial year which ended on Tuesday and as a result, will depress underlying operating profits to a level below the previous guidance range. The company notes that performance of digital channels was higher, although only by a comparatively modest 17%.
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