Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Go Ahead Group: market advised of cyber attack
Transport operator Go Ahead Group LON:GOG has this morning advised the market that yesterday it detected that the company had been the subject of a cyber attack. There’s no impact on UK or International rail services but the company is continuing to investigate the nature and extent of the breach. Regulators have been advised but critically investors will be keen to learn if this will have any material impact
#2. Vertu Motors: solid H1 set to be eclipsed by challenging H2
Vertu Motors LON:VTU has published a pre-close trading update. Supply chain shortages have given the sector something of a boost since the peak of the COVID pandemic and that strong performance continued in the first half of the year, but concerns over rising costs faced by consumers and ongoing supply challenges mean that profitability is set to be weighted more in H1 – and significantly down from the levels posted for the financial year ending Feb 2022. The removal of government support has increased operating costs, too and whilst management are committed to cutting expenses where possible whilst eyeing further growth through acquisition, this note could make difficult reading for some investors.
#3. Ashtead: market outperformance but borrowing costs increasing
Q1 numbers from the commercial rental specialists Ashtead LON:AHT show continued growth with revenues up 25% and EPS rising 33%. The performance is reported as robust across all geographies although the company’s exposure to the US could prove lucrative here given the idea that the country may avoid the worst of a downturn. Profits and revenues are higher than had been previously called, although rising borrowing costs also need to be accounted for. As such full year adjusted pre-tax profits are expected to be in line with previously stated expectations.
