Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. The Hut Group Q3 update shows modest revenue uptick
There’s a Q3 trading update out from The Hut Group LON:THG. This shows group revenue growth of 2.1% year on year, although this does risk being eclipsed by the two year increase which is noted as being significantly higher at 37.2%. Management also note that full year EBITDA and cash guidance remains unchanged. New credit lines have been secured with lenders but the market has been out of love with the stock for some time now – will this be sufficient to change sentiment?
#2. Whitbread H1 profits above pre-pandemic level
Interims from Premier Inn operator Whitbread LON:WTB this morning show H1 profits now running above pre-pandemic levels, with investors set to receive a half-year dividend of 24.4p per share as a result. The net cash position is recovering well and the company notes that structural growth remains on the table as independent hoteliers continue to disappear. Despite acknowledging macroeconomic headwinds, the company believes the momentum is there and looks to the strong performance through previous downturns.
#3. HSBC Higher global interest rates boost profits
Q3 numbers from HSBC LON:HSBA have seen profits come in almost 10% above expectations, as a result of rising global interest rates. There was also a commitment to higher distributions to shareholders in the coming years, and the company has committed to maintaining its operational base in the UK, despite questions as to whether this would be better placed in Asia where it generates most of its profits.
