Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Serco offers new guidance for medium term
There’s a note out from Serco [LON:SRP] this morning which includes new guidance for the medium term. By all accounts this is helping investors understand the size of the post-COVID bounce being seen from the company and suggests that a degree of normalisation will now follow. Critically however the company has also advised that dividend cover will be reduced from 4x to 3x, so this may well serve to placate any concerns at this stage. A capital markets event is also set to be held today.
#2. BigBlu Broadband trading comfortably above market expectations
BigBlu Broadband [LON:BBB] issued a trading update today, noting that the company continues to trade comfortably above market expectations and is positioned for continued growth in the next financial year. The company notes fresh growth opportunities in each of the territories they operate in, providing a strong trajectory for the group.
#3. Wizz Air capacity and passenger up
Eastern European low cost airline Wizz Air [LON:WIZZ] has issued its passenger numbers for November. The rolling 12 month figures provide the best insight here, with capacity up 7.1% and passenger numbers up 2.2%. That means load factors are down – now below 75% on an annualised basis – something which jars with the low-cost operating model. However in the summer the airline reported having unrestricted cash of EUR1.5bn and Fitch recently reaffirmed the company’s BBB- debt rating.