Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Revenues down at Dignity
Funeral operator Dignity has published interim results today. Revenues are down 17% and operating profits have fallen by 61%. Around one third of the revenue decline is a seen as being a result of the falling mortality rate in the wake of the COVID pandemic, whilst staff shortages and new pricing mechanisms are also weighing here. Dividends remain on hold for the time being.
#2. Pennon set to see £120m tax boost
Pennon has published a trading statement today covering the first half of the year. The content here is all rather top-line and we’ll have to wait until the end of November before the granular details are revealed but performance has been in line with expectations. The company adds that the government’s decision to abandon a move to charging 25% corporation tax will lead to a deferred tax credit of around £120 million.
#3. Cineworld cinemas set to remain subdued for next two years.
Cineworld has issued interims for the six months to 30th June. The company notes easing of pandemic restrictions have delivered a positive impact, but a slower than expected recovery means cash burn rates remain elevated. Short and medium term admission forecasts have been dialled down, with these expected to remain below pre-pandemic levels through FY24 but there is optimism that Q4 will prove to be strong, given the releases due.
