Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Smiths Group
Interim results are out from Smiths Group LON:SMIN this morning, covering the six month period to January 31st. Revenues may be off by 5%, but with a 33% uptick in cash conversion, shareholders are being rewarded with a modest uplift in dividend payments. The company anticipates a further improvement in performance for the second half of the year and subject to no further disruption, will be on target to meet full year expectations.
Stagecoach Group
There’s a trading statement out from Stagecoach Group [LON:SGC], ahead of the May 1st financial year end. The company remains upbeat about the outlook for the business once COVID restrictions are eased and there’s no apparent concern that the stay at home mindset instilled by a series of lockdowns will have any lasting effect. Government support for the bus network remains in place until social distancing on transport is no longer deemed necessary and there’s confidence that structures will be in place to manage the transition beyond this – it seems inevitable that demand won’t be back to historical levels overnight.
Open Orphan
Open Orphan LON:ORPH, the AIM listed pharmaceuticals clinical research organisation, has this morning announced that one of its subsidiaries has entered into a contract with a US biotech company to run a human challenge trial for an RSV – respiratory syncytial virus – therapy. RSV is one of the leading causes of hospitalisation of young children across the world and there’s concern that it could also worsen the impact of COVID-19. Revenues from the £7.5m contract will largely be recognised in the current financial year.
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