Three things you need to know in the financial markets this morning from investment writer, Tony Cross
SAGA has announced full year results this morning and along with this, a wholesale shift in its strategy as it attempts to address a series of long term challenges faced by the business. This however is going to have a big impact on profitability, with the company expecting the headline figure to fall by around one third next year. The proposed dividend is therefore being cut from 9p to 4p and although it may be short term pain for long term gain, investors are unlikely to be welcoming of the news.
AO World have a trading statement out this morning, which notes that full year performance will likely be in the previous expected range, whilst EBITDA is tipped to come in at the lower end of forecasts. Brexit contingency planning has seen the company build inventory levels on some lines of fast moving goods, whist exceptional costs of £2.5m are also flagged, but overall there appears to be little of concern here.
Entertainment One, the company behind media brands including Peppa Pig, has published a trading update this morning. Revenue across the ‘Family & Brands’ division – including the eponymous porcine – is up 25%, whilst in China revenues are up 50%, again largely thanks to Peppa. There are no signs of concern over the outlook, although with this being the Chinese year of the Pig, there’s a risk that the company could be setting itself up with some tough comparisons in 2020.