Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Half year results from Sage Group [LON:SGE] are out this morning, covering the period to March 31st. The company notes it was pitched against some strong comparatives, so whilst revenues nudged fractionally higher, profits found themselves squeezed. However, the company maintained its policy of increasing dividends to keep pace with inflation and expects recurring revenue growth for the full year to be towards the upper end of expectations. Ongoing strategic investments will however continue to act as a drag on margins.
A curious disposal note from Crest Nicholson [LON:CRST], which has agreed to sell the group’s 50% interest in Longcross Studio – a film studio – plus an adjoining parcel of land. The company will continue to hold a 50% stake in the site in Surrey which is expected to be able to accommodate 1700 homes. Proceeds will equate to a cash consideration of £45m before the end of the financial year.
A little off our usual beat for the last note today, but Mailbox REIT has confirmed that it is the first company to have its shares admitted onto the ISPX Wholesale property focused stock exchange. Mailbox is a single asset REIT which owns a property in central Birmingham, which is primarily office space. It’s certainly an interesting time for commercial property to be coming to market so expect this to attract some interest over time. As the note explains, ‘IPSX is a new Regulated Investment Exchange regulated by the FCA and is the world’s first such exchange dedicated to the initial public offering and secondary market trading of institutional grade commercial real estate assets. IPSX Wholesale is a market exclusively for institutional and professional investors and for issuers with an asset or assets that have a minimum market value in excess of £50 million.’
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