Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. RM profits rise [aving the way for a dividend hike
Educational technology provider RM [LON:RM] has published preliminary results today for the year to 30th November. Revenues rose 12% and adjusted operating profits were 22% ahead, paving the way for a dividend hike of more than 50%. Management are however reserved about this, noting that financial performance has been satisfactory – it lags pre-pandemic activity – but that market trends are positive for the longer term outlook.
#2. Frenkel Topping sees solid portfolio growth
AIM listed Financial Services play Frenkel Topping LON:FEN has issued a trading update for the year to December 31st. Solid client portfolio growth means that the company expects trading for the full year to be in line with management expectations with revenues of £18m, up from £10m and adjusted EBITDA of £4.5m, up from £2.5m.
#3. John Menzies sees acquisition offer as opportunistic
John Menzies [LON: MNZS] has issued a statement this morning, shunning the latest acquisition offer and suggesting that the price tag is opportunistic. It’s worth noting however that shares haven’t traded that high since early 2019 and the company recently avoided a potentially damaging strike after a fire and re-hire policy off the back of COVID-19 was then followed up with an attempt to block pay rises. Management could be left playing a high stakes game here if a deal doesn’t complete as it’s generally seen that the aviation market will still take some time to recover to pre-pandemic levels.
