Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. McColls cautions of share suspension
Convenience retailer McColls LON:MCLS has issued a trading update this morning which is likely to cause some concern for investors. It notes supply availability issues, inflation pressures and the fact that funding solutions are still very much a work in progress. The conversion of stores to the Morrisons Daily concept continues apace and is offering a more sustainable way forward but the company cautions that it won’t publish full year results until the financing challenge is resolved. That in turn could mean that the listings rules are breached, leading to shares potentially being temporarily suspended at the end of next month.
#2. Lok’nStore boosts interim dividend again
AIM listed self storage company Lok’nStore LON:LOK has published interims to 31st January this morning. Revenues are up by almost a third, EBITDA has increased almost 50% and the interim dividend is being increased by 15%, making for the 11th consecutive year of hikes here. The company notes trading remains buoyant and that pricing is up by 1.5% – with occupied space up 0.9% – in the first two months of H2.
#3. Chapel Down eyes sparkling wine for 2022 revenue growth
Aquis-listed Chapel Down [EPIC:CGDP] has published full year results this morning for the year to December 31st. These paint a picture of a strong financial performance with gains on all major stats. Revenues are up 25%, gross profit is 37% higher and a modest pre-tax profit has been posted against last year’s close on £8m loss. The company does caution that still wine production this year will be hampered by low yields in 2021, but is confident of full year revenue growth and higher profitability as a result of forecast upbeat sparkling wine sales.
