Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. ITM Power: forward reservations from Shell underline supply shortfalls
Slim pickings on the corporate calendar as we wind down towards the Christmas break but ITM LON:ITM have released details of a 100MW capacity reservation with Shell Deutschland Group, with the buyer securing future production from ITM.
This would see electrolyser stacks being built for a Shell facility in 2025/2026 and although the note cautions that the final investment decision is still to be made here it underlines the shortage of production capacity in the market.
- Synectics shares surge 18% after trading update
- Broker Tips: JD Sports Fashion, ITM Power, Dunelm
- Director Deals: ITM Power, Hays, Keystone Law
#2. Macro headwinds boost Begbies’ performance
Begbies Traynor LON:BEG the insolvency specialists have half year results out, showing a strong performance so far and confidence in the full year outlook. Revenues are 13% ahead, the interim dividend is being increased by around 8% and it’s a combination of organic and acquisition lead growth that’s driving the business.
The worrying line here is however a broader macro one, with management noting that the current interest rate and inflationary environment in the UK will continue to drive corporate financial stress and maintain demand for insolvency services.
#3. Material profit upgrade for Synectics
AIM listed Synectics LON:SNX has published a trading update for the year to 30th November. The surveillance systems specialist now expects results for the full year to be materially ahead of market expectations, reflecting a strong H2 performance especially in the oil & gas markets. The order book is up by more than 15% from a year ago and the net cash position is improved, too.
