Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Half year results from Purplebricks [LON:PURP] are out this morning, showing a resilient performance despite the inevitable disruption to house moving which was caused by COVID. The numbers run to October 31st, with revenues showing a 6% decline and gross profits off by just 1%. Interestingly, and arguably reflective of the online model, the number of instructions received over the period rose by 8%. Management note an increased level of confidence amongst consumers when it comes to buying and selling homes digitally, but it will be fascinating to see if shifts in behaviour here do become “sticky” given the sheer expense of property.
There’s a short trading update out from IG Group [LON:IGG] this morning, with the company noting that performance in Q2 mirrored the strong showing seen in Q1. Client numbers are up materially – around 50% from a year earlier – and net revenues for the first six months are set to be in the region of £416m, up 60% from the same period in 2019.
There’s a small AIM stock called Spaceandpeople [LON:SAL] which sublets promotional space in shopping centres and travel hubs. A couple of weeks ago they announced having secured some prestigious spaces and the shares rocketed higher. This morning the company has advised the market of another two prestigious contract wins at former Intu malls in Gateshead and Stoke on Trent. There are no forecasts here as to what this means in terms of revenues or costs but it will be fascinating to see if there’s a repeat of the same share price action off today’s news.
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