Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
G4S
There’s a trading update out from G4S [LON:GFS] this morning as the company readies itself for a takeover bid. There’s concern that the offer which has been tabled isn’t generous enough, so this morning’s upbeat statement is presumably designed to talk up the valuation. Over the first eight months of the year, revenues were just 1.9% lower and this was more than offset by tight cost controls and lower borrowing costs. There’s not much new in here, but this bid could become a dominant theme in the weeks ahead.
Carnival
There’s a positive note out from Carnival Cruise Lines [LON:CCL] this morning, advising that a second of its ships will resume sailings off the Italian coast. The whole situation is massively restricted with only Italian passengers being allowed on board and all shore excursions having to operate within a bubble. However investors may take some solace in the fact that another of the company’s assets is now earning some income. The company’s London listed shares were trading around the £36 mark at the start of the year and closed on Friday at £9.47.
Finsbury Food Group
AIM listed Finsbury Food Group LON:FIF has published full year results to the end of June this morning. The first nine months of the year saw the business operating in line with market expectations, but COVID-19 resulted in unprecedented demand swings, presenting challenges for the group. Although profitability was only impacted relatively modestly, adjusting items saw the pre-tax bottom line figure slump from £13.5m to £2.9m. The dividend has been suspended and given the uncertain outlook – both in terms of the ongoing health pandemic and with Brexit looming – the company is unable to predict with any accuracy how its recovery will look. Management do however hope to reinstate a FY dividend in 2021.
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