Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Boohoo revenues down 10%, headwinds to persist
Heavily shorted Boohoo group LON:BOO has this morning published interim results for the period to 31st August. Revenues are down 10% and profits slipped by 13%, although figures still remain significantly above pre-pandemic levels. However the mounting headwinds faced by consumers along with inflationary pressures on costs mean that the decline is likely to be sustained through the second half of the year. Operational optimisation is said to have the ability to improve profitability in the near term but as with many businesses who are reliant on discretionary spending, challenging times lies ahead.
#2. Confidence from cinema operator Everyman despite looming recession
Cinema operators Everyman LON:EMAN have interims out today too, covering the 26 weeks to 30th June. The end of lockdown restrictions and a willingness to return to a more normal way of life by consumers saw revenues increase more than five-fold, with the company also returning to profit. There’s a confident air in terms of outlook with the business focussing on its new openings and uptick in releases, noting that cinemas have historically performed well during times of recession.
#3. Ormonde shows off healthy cash balance
Ormonde Mining [LON:ORM] completes our trifecta of companies reporting interims today. The company notes a significant reduction in losses and sits on a cash and receivables of almost EUR6m. That’s significantly above the company’s market cap, and with shareholder approval of a sale set to leave the company as a cash shell, they will have six months to complete a reverse takeover or need to delist.
