Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
McCarthy and Stone
News from McCarthy and Stone [LON:MCS] this morning, who have reached an agreement with a real estate firm to take the company private. The price agreed is close on a 40% premium to where shares finished last night. This is an interesting play as McCarthy & Stone’s exposure to the retirement living sector leaves them well positioned for models that result in additional lines of revenue. Whether investors see the same value as management at this price remains to be seen.
IHG
Hotel group IHG LON:IHG has Q3 numbers out today, noting revenue per available room off by just over 50% although occupancy during the quarter grew to 44%, up from the 25% seen in Q2. The company has also continued to open new properties during the ongoing global crisis, which combined with the fact there’s positive cashflow during the period might provide some confidence for investors. Perhaps one stand out is the breakdown of regional numbers which includes China. RevPAR is down 23% and occupancy stood at 57% – the country may be ahead of the curve but travel clearly remains significantly constrained.
ITM Power
News from AIM-listed ITM Power LON:ITM this morning of a successful placing, with strong investor demand enabling the company to increase the offer size by £15m and raise a total of £165m. As the company notes, the global demand for green hydrogen is growing fast and the funds raised here will enable the company to capitalise on future developments.
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