Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Tate & Lyle upgrade for continuing operations
Q3 numbers from Tate and Lyle LON:TATE have been released in a trading statement this morning. The outlook for total operations for the full year is expected to be unchanged but management have added that the performance of its continuing operations is now expected to be stronger. Revenues for this division advanced 18% and full year numbers will be published at the start of June.
#2. Omega Diagnostics under-used diagnostics site to be sold
AIM Listed Omega Diagnostics LON:ODX has been featured in our junior market column a couple of times of late. This morning the company has announced the sale of the company’s diagnostic test kit manufacturing facility in Scotland. This was expanded in the expectation that a government contract was forthcoming, but after it failed to materialise, the company was left with significant surplus capacity and a site which was incurring significant losses. A price tag of £1m is attached to the deal, which will provide some much needed cash for the business.
#3. British American Tobacco modest dividend increase may disappoint
Final results from British American Tobacco LON:BATS are out today. Revenues grew 6.9% and a further £595m of cost savings have been delivered. Operating margins have however slipped 70 basis points, with the company noting that emerging markets are now normalising after COVID. The company notes it is working hard to pay down debt, which in turn is giving it more flexibility in terms of capital allocation, but news that shareholders will receive a dividend increase of just 1% may present something of a shock given the current economic outlook.
