Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Ryanair has published its quarterly trading statement this morning and the numbers have landed with a bump. Higher fuel and staff costs, plus lower fares have combined to knock profits down by some 21% although full year guidance remains unchanged. Ancillary sales are providing support here but the company does caution that any forward looking view is reliant on no significant discounting, any security events or adverse consequence from Brexit. The turbulence could continue for a while yet.
There’s a trading statement out from food producer Cranswick this morning, too. Revenues for the three months to end June are up 1.5% on the same period a year ago, despite some strong comparatives. Export demand to the Far East remains strong and the business continues to invest in new production facilities. The outlook remains in line with management expectations and there’s no telegraphing of any meaningful risk from events such as Brexit.
JustEat could be set for bigger things, with news over the weekend of a merger with Takeaway.com. Although JustEat’s shareholders would be the majority owners, the move would see Takeaway.com dominating. The combined group would be incorporated and headquartered in The Netherlands, but maintain its premium listing on the London Stock Exchange. This latter point is likely to be significant in terms of confidence in capital markets post Brexit.