Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
There’s a half year trading statement out from Signature Aviation [LON:SIG] this morning. There can be no question that the aviation industry has had a rough ride over the last few months and Signature is no exception. However with a focus on supporting the private jet market, the shape of any recovery here may be somewhat atypical for the sector. Revenues for the period are off by 31%, whilst flying activity in the US in June was just 32% lower than a year earlier, compared with a 77% dip in April. The company continues with its ambition of growth through acquisition, although has suspended forward guidance and dividend payments.
There’s another update from struggling lender Amigo Holdings [LON:AMGO] out today. This notes that a further extension to bank waivers has been agreed, from 24th July to 14th August as parties attempt to finalise further amendments. The company adds that it remains well capitalised with £135m available as at the end of June. It is however interesting to note that the market cap of the company was just £38m on Friday.
Going back to Friday, there was an interesting announcement from Fastjet [LON:FJET], the African low cost airline. They are petitioning investors to support a delisting from AIM and cancellation of shares. The reasons being given here are the cost of maintaining a full market listing and the reluctance of many institutional investors to continue supporting the business as it battles with lockdown restrictions across its network. The plan would be to move the listing to Asset Match, a London trading facility with operates periodic auctions on a matched bargain basis. The note however carries a stark warning, that the directors believe on current projections that the company will only have sufficient resources to meet its operations needs until the end of next month.
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