Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Go Ahead Group bullish profit forecasts and dividend payouts offer attractive yield potential
Go Ahead Group LON:GOG has this morning announced the conclusion of its post-COVID business review which includes a number of strategic objectives, but arguably of most interest to investors will be the resumption of dividends with a payment no lower than 50p this year and between 50% and 75% of profits being returned to shareholders thereafter. The company is also targeting revenues to rise 30% to £4bn in the medium term, delivering profits of at least £150m over the same period. Given the current market cap of £365m, the yield potential on this isn’t to be sniffed at….
#2. Full year revenues upgraded for Moonpig
A trading update from Moonpig LON:MOON, the online card and gift company, has been published today. Strong trading has been maintained as a result of the plan B lockdown, which has resulted in the company upgrading revenue forecasts for the full year to end-April up to £300m. However that’s still expected to recede to around £265m for the next FY. The company is noting increased buying frequency from customers and adds that margins remain resilient.
#3. The Works IT hack flagged; payment details secure
Discount stationer The Works LON:WRKS has advised the market this morning of a cyber security incident. Payment information hasn’t been compromised but this has resulted in some short term disruption to trading and delivery of stock. The note is factual and lays out how the business has responded, along with details that it has advised the ICO of a potential data breach. Obviously not news that any company wants to announce, but the transparent manner is to be applauded. There’s no timeline of events here but reading between the lines, this does appear to have been quite recently.
