Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Marks and Spencer
Marks and Spencer [LON:MKS] has this morning confirmed the news that its CFO is to depart. An orderly transition process is now in place, although after a relatively short tenure of just 18 months, the move is likely to raise some eyebrows coming so soon after the company was evicted from its position in the FTSE-100. Some volatility in early trade shouldn’t prove too surprising.
Unlikely that anyone has missed this story, but travel agency Thomas Cook [LON:TCG] ceased trading overnight after it was unable to find the necessary support from financiers. The business is being liquidated, holidays have been cancelled and a massive repatriation effort is underway to bring home holidaymakers. Although the news may be positive for some in the travel sector, peer On The Beach has this morning issued a statement advising that it will face a one off exceptional charge in helping its customers make alternative arrangements. Lost margin on cancelled bookings will also hit the company – the extent of any knock on effect of this collapse is perhaps yet to be fully realised.
Goals Soccer Centres
The tense relationship between Goals Soccer Centres [LON:GOAL] and its major shareholder Sports Direct has taken another turn this morning. GSC is looking for a buyer, although Mike Ashley’s provisional offer of just 5p per share may have the potential to flush out other prospective bidders. That said, with so many uncertainties hanging over the business, whose shares have been suspended since March, investors will be watching closely to see if there is any interest elsewhere.