Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Hotel operator IHG [LON:IHG] has published full year results this morning, which paint a predictably bleak picture – although the company has remained profitable. Revenues are down a little over half whilst operating profits have fallen 75% and RevPAR (Revenue per available room) is off by 52.5%. There is however an interesting breakdown of this stat by region in Q4, with the China figure less than 20% lower, whilst EMEAA was still 70% off. Despite limited visibility over the outlook, the company continues to invest in expanding its footprint. The dividend however remains suspended.
A short note out from Mike Ashley’s Frasers Group [LON:FRAS] this morning notes that the company expects the current lockdown – which will hopefully see non-essential retail reopening on April 12th – to result in a further cash impairment of at last £100m. Systemic change in consumer behaviour is cited as a consideration here and that number comes in addition to impairments already announced back in December.
Full year results from HSBC [LON:HSBA] have left shareholders with something to cheer this morning after profits beat expectations, even though they were some 34% lower than seen in 2019. That has been sufficient to allow the bank to resume dividend payments from August at $0.15 per share, although bad debt provisions have more than trebled whilst lower global interest rates continue to drag on performance, too.
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