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

Rentokil Initial

Rentokil Initial [LON:RTO] has published Q1 numbers this morning. The company has been through a dynamic period as a result of the COVID pandemic, but group revenues are around 15% higher. Pest control revenues are starting to recover, whilst the core hygiene division saw income fall, although this is now going to come against some tough comparatives as demand jumped in the early stages of the health crisis. While there’s still uncertainty as the world tries to find its way back to a degree of normality, the outlook remains a confident one with this early momentum expected to extend through the year.

Ibstock

There’s a trading update out from brick manufacturers Ibstock [LON:IBST] ahead of their AGM today. The year has started well with trading modestly ahead of expectations and the board is confident that this pattern can be sustained despite the economic uncertainty that has been caused by COVID. The company is also investing in production lines with some £60m to be spent over the next three years in a project that will deliver incremental EBITDA of £12m p.a. and provide a RoCE in line with current company averages.

SEGRO

There’s a trading update from SEGRO [LON:SGRO], the commercial property company that focuses on warehousing. We’ve flagged them before and this corner of the market has performed well through lockdown, thanks to the boom in online retail. One key point in the note is news that new headline rents on review and renewal are up by “more than 12 per cent on previous passing rent as ongoing asset management continued to capture reversionary potential from our existing portfolio”. Regardless of how you cut it, anyone seeing that sort of uplift in income is clearly onto something. The company also notes that it has 1.3m sq metres of space coming on stream which would add a further £87m of potential rental income.

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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.

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