Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. De La Rue profits downgraded
There’s a trading update out from De La Rue [LON:DLR] this morning which notes that adjusted operating profits for FY 23 ending 25th March will be a few percentage points below expectations, with a downturn in demand for paper currency seen as a driving force here. Banknote demand is at its lowest in 20 years so this has also resulted in uncertainty for FY24, although the board now expects adjusted operating profits next year to be in the low £20m range. The company is in discussions with lenders to adjust banking covenants accordingly.
#2. Trinity platform fire sees production drop by a third
Oil exploration firm Trinity [LON:TRIN] has issued a statement this morning advising the market of a fire on its Bravo platform off the coast of Trinidad. Thankfully no fatalities were incurred but all four operators on the platform received medical attention. No hydrocarbons were released, either. The platform – which has now been shut down – accounts for one third of the Trinites field production.
#3. Revenues, EBITDA grows for Marks Electrical despite macroeconomic headwinds
Electrical retailer Marks Electrical [LON:MRK] has issued a pre-close trading statement for the 12 months to 31st March. Revenues are up by 21.5% with gross margins improving and strong momentum being recorded as the FY drew to a close. The numbers are seen as especially positive given the underlying macroeconomic backdrop and management clearly have big aspirations when it comes to the company cementing its position as a UK retailer of choice.
