Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Reach operating profits are up by 25%
There are half year numbers out from news publishing group Reach Plc LON:RCH this morning, which might just give investors some cause for cheer. Revenues added 4% and on an adjusted basis, operating profits are up by 25% and user registrations are up by 150% on the year. Expectations are that this will hit 10million by the end of next year, so bolstered by that and the current cash position, it’s sufficient for the company to reinstate the dividend with management confident that sustained growth can be seen from here.
#2. Belluscura manufacturing underway and a fourth distribution agreement signed
A company we’ve followed in recent months is Belluscura LON:BELL, the developer of lightweight portable oxygen generators. They have updated the market this morning to advise that manufacturing is now underway and a fourth distribution agreement has been signed. Critically, Belluscura is a portfolio company of Tekcapital, which owns around 15% of the company’s stock.
#3. Virgin Money UK sees increases in mortgage lending and personal borrowing
There’s a Q3 trading update out from Virgin Money UK LON:VMUK this morning, which notes increases in mortgage lending and perhaps more surprising personal borrowing – an area which has been contracting of late. Business lending and overall deposits both fell, although an increase in the net interest margin (NIM) of 8 basis points will arguably offset much of this. Bad debt provisions have been adjusted lower as a result of the lighter than expected economic impact of the COVID pandemic
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