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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.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Tony Cross

Tony Cross

Tony Cross is a market commentator with over 15 years of experience, producing compelling, insightful copy for journalists and investors alike. Focusing on macroeconomics, UK blue chip equities and inter market analysis, Cross's commentary is well regarded for its clarity and ability to cut through the waffle. He has been quoted in publications as diverse as The Financial Times, The Times, The Guardian and The Sun. He has also been a regular guest on both Share Radio and TipTV.

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