Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Centrica trading update stresses uncertain environment
Centrica LON:CNA has published a brief trading update this morning, covering the first four months of the year. In its British Gas arm there have been some supply chain challenges and higher inflation which has hit the cost base, but production volumes from nuclear and gas assets in the UK have been understandably strong. Significant uncertainties remain over the remainder of the year. How the market reacts to this will be interesting to watch.
#2. DX Group struggles to find replacement auditor
Something of a red flag from shareholders in DX Group LON:DX., whose shares have been suspended since the start of the year. The company has still been unable to appoint an auditor which means it risks being unable to publish accounts before the deadline 5th July, which would in turn lead to the cancellation of the listing unless some kind of variation can be agreed. Financial performance since the start of the year has been in line with management expectations.
#3. Supreme issues clarification over supply agreement with McColls
There’s a short note out from FMCG producer Supreme LON:SUP which has been obliged to clarify its position with McColls, the recently collapsed retailer which was bought out by Morrisons. The company notes that it has been supplying the McColls estate via a distribution agreement with Morrisons and that these transactions only contribute a mere £350k worth of revenue, around 0.5% of its annual total. However, with the company’s shares having halved in value since January, this update alone seems unlikely to be transformative.
