Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Despite a weakening global macroeconomic backdrop, recruiter Hays [LON:HAS] has this morning published a solid set of full year results. Fee income is up 5% and pre-tax profits are also 3% higher. Exceptional items have taken the edge off, but investors are being rewarded with a 3.97p dividend plus a 5.43p special dividend payment. Looking forward, the risk from here seems to be the combination of tough comparatives and a slowing global economy.
McColls Retail Group
There’s a Q3 update out from high street convenience retailer McColls [LON:MCLS] this morning, which once again lays bare the challenges facing the UK retail sector. Like for like sales have dropped 2.2% for the quarter and this marks a significant change in pace from the interims released just over a month ago which appeared to show the company stabilising after an uncertain 2018. The market may be unwilling to look positively on this news.
Micro Focus International
What amounts to a profit warning from Micro Focus International [LON:MCRS] has been released today in a trading update covering the full year period to end of October. The company notes that a deteriorating macroeconomic environment means they don’t expect to meet with guidance – which was already stated as a 4% to 6% decline in income – and instead will now be eyeing a 6% to 8% drop. The company is responding by accelerating a strategic review of the business in order to improve shareholder value.
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