Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. 70% increase in dividend for Reach Group
Publishers Reach Group [LON:RCH] have issued full year results for the year to December 26th this morning. The company continues to shift away from print readership to the online model and with 10 million subscribers now, is already ahead of target for this year and is now looking to double digital revenues by 2024. The company does note that inflationary pressures are set to take a toll on traditional media channels this year, but the move away from this area is likely to mitigate the impact and shareholders are being rewarded with a 70% increase in dividend.
#2. PPHE Hotels revenues recovering, but slowly
Full year results from hospitality real estate group PPHE Hotels [LON:PPH] for the period to December 31st have been issued today. Total revenues are up by almost 40%, which itself represents a recovery to almost 40% of the 2019 pre-COVID figure. Revenue per available room continues to increase and the general trajectory remains upward. EBITDA in H1 ’21 was -$14m whilst H2 saw a £39m gain. The company remains well-resourced in terms of cash, but with rising labour prices the latest issue to blight the sector, the question is just how long will a return to profitability take.
#3. abrdn sees first profit growth since merger
Finally, full year results have been published from abrdn [LON:ABDN] this morning. What the name loses in vowels they make up for in the sheer length of the report, which has been split into eight parts. The company notes profit growth for the first time since its merger, with fee revenues up 6%, profits up by almost 50% and some £400m worth of synergies having been achieved. The company continues to look at driving down costs and expected the cost/income ratio to be below 70% by 2023. The dividend is being maintained in line with current policy, with the intention of growing this only once the figure is 1.5x covered.
- Director dealings: Drax Group, Howden Joinery and Jersey Oil & Gas (10 May 2022)
- Three Quick Facts: Shell, Reach and Next (5 May 2022)
- What is the fixed income market outlook for 2022? (20 Dec 2021)