skip to Main Content

Free Newsletter: Actionable insight every morning for the self-directed investor. Find out more

Join

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

On The Beach

There’s a full year trading update out from travel agents On The Beach [LON:OTB] this morning, ahead of final results which will be published in early December. Bookings over Q4 – July, August and September – were down by 53% which given the backdrop is arguably not too bad. The company is quietly building a reputation for itself as being very pro-consumer when it comes to making quick refunds for flights, a pattern that was seen during last year’s bankruptcy of Tomas Cook and one that continues today. So far it has refunded customers for £90m worth of flights despite having only received £79m back from airlines. Liquidity also remains sound – the company has £44m of cash, a £75m credit line and a zero revenue cash burn of just £2m a month.

Taylor Wimpey

Taylor Wimpey [LON:TW] has published a trading statement this morning, which acknowledges that the rebound in the property market has been somewhat quicker than had been expected following the COVID shut down. Low interest rates and government initiatives continue to buoy the market, and the company expects to see completions in FY 2021 as being up to 90% of the FY 2019 level. The company also has a strong balance sheet, so there seems to be little here to spook investors.

Dignity

Funeral operator Dignity [LON:DTY] has published a Q3 update, which makes for rather gloomy reading on a number of counts. Sadly, the number of deaths across the UK is up 15% over the first 39 weeks of the year, with Dignity reporting a 4% increase in revenues and an 8% decrease in profits. The company also acknowledges that the sharp increase in mortality in 2020 could see death rates fall in the coming years. With a strategic review ongoing and uncertainty over the outlook, there’s no forward guidance being offered.

Sign up for three quick facts and more with our Free Daily Digest newsletter, every weekday morning.

Become a better investor with SharePad Designed to give you the confidence to pick your own investments, Sharepad gives you access to a wealth of information on UK, US & European stocks. Find out more

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.

Stocks in Focus

Here are some of the smaller companies we are following most closely. They all represent significant growth stories in our view. Our in-depth reports go into more detail on why we like them.

Comments


Preferred Providers

Our partners are established businesses, regulated by the Financial Conduct Authority, and we are grateful for their support.

Pepperstone
FP Markets
IG
Spreadex
Trade Nation
WisdomTree
ActivTrades
Back To Top