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Three things you need to know in the financial markets this morning from investment writer, Tony Cross.

Mitchells & Butlers

There’s a COVID-19 financing update out from Mitchells & Butlers [LON:MAB] this morning. It details the fact that various covenant waivers have been extended and also highlights the current cash position of the business. They have £130m of liquidity available and note an EBIDTA loss of £15m every four weeks, including rent payments. However the business is also paying down supplier balances, which takes the current cash burn rate out to £30-£35m per four week period. Government plans are suggesting that full reopening of bars and restaurants will still take some time. Initial inspection suggests that there’s some runway left for M&B but it’s getting shorter by the day.

Games Workshop

Games Workshop [LON:GAW] have issued a full year trading update today. Sales for the first nine months of the year were in line with expectations but the impact of COVID-19 over the last three months has been marked. The business is now however in a cycle of reopening its global store network, with 306 out of 532 properties operational. The company also notes that the recovery since reopening has been better than expected. Full year sales are expected to be around £270m with pre tax profits of no less than £85m. Interestingly the company adds that in light of the upbeat results, they don’t intend to make any further claims for government support and will aim to repay amounts already received where possible.


The stratospheric recovery of the Carnival Cruise Line [LON:CCL] share price in recent weeks had already started to falter but the company has issued a note this morning advising of further delays to its Holland America Line subsidiary in restarting services. The travel industry continues to struggle to pick its way out of this mire and cruise operators have a series of specific challenges to address. Shares have already lost 25% since Monday. This news seems unlikely to calm investor jitters.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Tony Cross

Tony Cross

Tony Cross is a market commentator with over 15 years of experience, producing compelling, insightful copy for journalists and investors alike. Focusing on macroeconomics, UK blue chip equities and inter market analysis, Cross's commentary is well regarded for its clarity and ability to cut through the waffle. He has been quoted in publications as diverse as The Financial Times, The Times, The Guardian and The Sun. He has also been a regular guest on both Share Radio and TipTV.

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