Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Intu Properties
We saw media speculation over the weekend that Intu [LON:INTU] would soon be tapping shareholders for fresh funds and a statement this morning addresses the fact. The company continues to make disposals in a bid to stabilise the balance sheet, but adds that an equity raise will be seen alongside the release of full year results next month. The company notes that occupancy stands at 95% and is stable, whilst 97% of rents for the first quarter have already been collected.
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Fevertree Drinks
The growth story continues for Fevertree drinks LON:FEVR with the release of a year-end trading update this morning. Global revenues advanced almost 10% but interestingly UK sales have stalled. The business is suggesting the challenges of the domestic retail environment have won out here, but is confident that a return to growth can be seen despite the dominance – and risk of saturation – the company now holds. Margins have contracted by more than had been expected and this could prove to be a cause for investor concern.
Anglo American
Anglo American LON:AAL has agreed bid terms with the board of Sirius Minerals, at a price of 5.5p per share. That’s a long way below the highs reached in August 2016, but provides a way ahead for both the company’s operations and the wider UK potash sector. The deal requires 75% shareholder approval but some concerns have been raised that this could see Anglo’s free cash flow being squeezed. Advisers to the deal have however noted that the funding position is covered. It could however be the acquiring party’s share price that sees the volatility in the short term.
