Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Polymetal International
Polymetal LON:POLY has published full year results this morning which show an upbeat tone despite the global health pandemic. Revenues are up 28% whilst sharp devaluation of operating currencies has also served to favour the numbers. Net debt is down, although it notes that CAPEX is set to be around 10% higher for the full year largely as the company made operational adjustments to account for COVID. Looking ahead, 2021 CAPEX is being revised upwards as a result of anticipated higher input prices and the company is committed to getting projects on stream in a timely manner – rather than cheaply – although this remains a strong dividend payer.
Guild Esports
E-sports may be the talk of the town, so full year results from Guild e-sports LON:GILD, published today, are worth a look. This covers the 12 month period immediately before the IPO so the costs are skewed to account for the listing, but the company expects to deliver strong growth in the year ahead. Co-founded by David Beckham, Guild boasts a growing fan base and notes the success of some of its players. In a COVID secure world, e-sports may be ‘right place, right time’ but will sustaining that sentiment post-lockdown prove more challenging?
CVS Group
A trading update from veterinarians CVS Group LON:CVSG covers the six months to December 31st. Sales for the period were up by almost 10% whilst margins increased, too, and as the note states, “the veterinary market continues to benefit from favourable consumer trends, with increasing pet ownership and the humanisation of pets driving wider appreciation of animal care. These trends, coupled with advances in clinical care increases the range of services we can offer.” As with others in this sector, they have seen business grow under the COVID pandemic and given that so-called ‘humanisation of pets’, it seems likely that this momentum will be sustained in the longer term.
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