Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. HSBC buys SVB UK arm
The news feed this morning is awash with updates from companies outlining exposure – or lack thereof – to Silicon Valley Bank which collapsed on Friday. However hidden amongst this is the fact that HSBC LON:HSBA has agreed to buy the UK arm for £1, protecting customer deposits and strengthening its commercial banking franchise. Last year, SVB profits were £88m before tax, with a loan book of £5.5bn and deposits of £6.7bn.
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#2. Strong demand from target audience boosts Nightcap revenues
Interims from Nightcap LON:NGHT covering the 26 weeks to 1st January show a strong trading performance with pre-Christmas rail strikes proving far less damaging to business than 2021’s COVID related challenges. Revenues added close on 50% helped along by a slew of new bar openings although pre-tax losses grew from £0.5m to £0.9m. The company notes trading is in line with market expectations and adds that the outlook is encouraging, helped along by the fact that target audiences remain resilient with high disposable incomes.
#3. Post-COVID travel resumption buoys Global Ports Holdings figures
Global Ports Holdings LON:GPH, the world’s largest independent cruise port operator, released numbers for the nine months to 31st December yesterday. Clearly these have been flattered by the resumption of trade post-COVID with passenger numbers more than quadrupling, although the fact total revenue added just 62% is perhaps slightly surprising. The note adds that the global cruise fleet is now completely deployed and industry expectations are for cruise passenger numbers to exceed pre-COVID levels by this summer. Growth through acquisition is also eyed with a further three ports expected to join the network this calendar year. Full year EBITDA figures have been upgraded by $5m to $65m as a result of the strong performance.
