Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Serco Group sees stronger than expected trading
There’s a trading update out from Serco Group [LON:SRP] this morning, providing updated guidance for the full year in the wake of stronger than expected trading. Revenues are now expected to be around £4.4 billion, up from £3.9 billion last year and ahead of the previous guidance of £4.3 billion, with operating profits of £225 million anticipated. This has been driven at least in part by government COVID support contracts pricing higher and lasting longer than had previously been expected. Looking further ahead, a normalisation for 2022 is anticipated, with consensus forecasts currently suggesting revenues of £4.2 billion and underlying profits of £196 million.
#2. Cineworld reports positive cashflows in October
Cineworld [LON:CINE] is the world’s second largest ‘cinema exhibitor’ in the world and has today published a trading update for the four months to 31st October. Sales have been steadily improving over the summer, with global box office and concession revenues for October reaching 90% of the 2019 level, whilst the UK & Ireland have been notable outliers here with 127% of pre-pandemic revenues being achieved. This, combined with cost discipline, means that the group generated positive cashflows in October, which it describes as an important milestone in its recovery.
#3. ITM Power sign contract for 12MW electrolyser
A quick note from ITM Power [LON:ITM] which is a popular stock with many readers. This morning they have announced that contracts for delivery on a 12MW electrolyser have been signed, with the income due to be booked in 2022/23. That sees the contract move from “backlog/in negotiation” to “work in progress”. In a bid to put this into context, at the end of September a presentation to investors noted the total backlog was for 310MW of electrolysers which were collectively worth £171 million.