Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
TalkTalk
TalkTalk [LON:TALK] has published a quarterly trading update, covering the three months to June 30th. This notes headline revenues down by £29m to £358m, with the cancellation of live sporting fixtures and trading restrictions as a result of the COVID-19 lockdown having taken its toll. The revenue hit has however been countered by cost-saving initiatives and the company also notes that during June and July, trading continues to recover. The lockdown wasn’t entirely negative either, with customer churn hitting a record low and strong demand being seen for the company’s fastest broadband products.
Begbies Traynor
Begbies Traynor LON:BEG is often a company that is touted as being well positioned in times of economic uncertainty, given its role in business restructuring. Today they have published full year results to April 30th, with revenues up by just over £10m to £70.5m, whilst the adjuster pre-tax profit has also jumped higher. An improved dividend of 2.8p per share is being proposed. The company notes that as a result of expansion, it will be well positioned to capitalise on the inevitable company insolvencies which will be seen, especially once short term government support packages are removed.
GVC Holdings
There’s a brief note from GVC Holdings [LON:GVC], the name behind brands including Ladbrokes, Coral and Gala, noting that HMRC is stepping up an investigation into a Turkish facing online gambling business, which GVC disposed of in 2017. Apparently there’s little detail available, but the investigation involves “potential corporate offending” and the 2010 Bribery Act. GVC continues to cooperate with HMRC on the matter and will issue further updates if appropriate.
- Find out how our picks got on in June
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