Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Ocado
There’s a trading update out from Ocado LON:OCDO this morning, highlighting the performance of the company’s UK retail operation in the three months to end of August. Revenues were up 52% and average orders per week moved 9.6% higher. Spend continues to fall from the peak levels seen in the height of the COVID-19 pandemic, but remains elevated. As of September 1st, the company has switched to providing Marks & Spencer rather than Waitrose products – initial indications are that this has been well received and the business is committed to expanding its UK retail capabilities further in the next year.
FirstGroup
FirstGroup LON:FGP has published an update ahead of today’s AGM, covering the April to August period. The company notes better than expected revenue recovery in recent months and adds that it now expects to deliver a small adjusted operating profit for the first half of the year. Uncertainty remains as to what happens in terms of passenger demand from here but in the UK, bus passenger usage is now at 50% of pre-pandemic levels, whilst rail stands at around 30%. Income from US operations is also improving.
Mitie Group
Mitie’s LON:MTO plans to buy rival Interserve’s Support Services division have been pushed back into the spotlight today, with the Competition and Markets Authority asking for comments on the transaction from interested parties over the next two weeks. Their concern is that the deal could lessen competition, although with the services sector having been through a difficult time which resulted in Interserve being taken over by its creditors last year, this could be a difficult case to make.
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