Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. London Stock Exchange: rising costs eat into profits, new share buyback announced
Full year numbers from the London Stock Exchange LON:LSEG are out today. These note an 8% increase in income although operating profits are down by just over 3%. Investors are however set to see a 7.5% uptick in the total dividend payments and management note that a further £1bn of share buybacks are planned for the current financial year.
- Global banks take £170m stake in LSEG’s post-trade unit
- AIM Market Roundup: Future Metals, Renalytix, Nativo Resources
- Serco’s shares to get a boost from $972m US Air Force training contract?
#2. Serco: sharp uptick in profitability
Serco Group LON:SRP also issued full year results today with revenues up 7%, reported operating profits some 25% ahead and investors are being rewarded with a 19% increase in the recommended dividend payment. Looking ahead, FY24 guidance notes that the debt position is set to improve and a new share buyback of £140m is getting underway.
#3. Renalytix: new kidney testing approval from US government
Another note from Renalytix LON:RENX today, advising the market that it has seen its US government coverage for its kidney testing kit expanded further. We’ve seen the company’s share price respond well to announcements like this at least in the short term, but the note also adds that an open public meeting being held today will see the case for longer term approval of the therapy being put forward. There’s confidence that this will be granted but it’s confirmation of this that will arguably have the true potential to see a re-rating.
