Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Capita disposes of Pay360
Capita LON:CPI has this morning announced the disposal of Pay360 for £150m, as part of a strategic review of the business. With gross assets of £63m and profits last year of £7.1m, this could look like a bargain for the new owners, but it also allows Capita to build a more focussed and sustainable business in the long term.
#2. Thermal coal strategy from Contango
Contango Holdings LON:CGO has published its thermal coal strategy following a spike in demand. Disruption in energy markets is being seen widely and the company believes it can start delivering 10,000t of thermal coal a month, with a margin of $100-$150 per tonne by the end of H1 ’23. Critically energy markets have the potential to correct and also this could prove an unpopular move amongst activist investors, but it does suggest there’s meaningful money to be made.
#3. Naked Wines appoints former CEO as adviser
Shares in Naked Wines LON:WINE have taken a beating this week after the sudden resignation of a NED who represented the company’s largest shareholder. This morning, Naked has announced that the former CEO and a 2.9% shareholder in the company, Rowan Gormley, has been appointed as an adviser as the company finalises its operational and financial plans. These details will be outlined during the week commencing October 17th.
