Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Mears Group delay to accounts owing to auditor absence
Mears Group [LON:MER] have this morning issued a statement advising that there will be a delay to publication of their full year accounts, although are keen to stress that this is relating to matters outside their control rather than any concern over the 2022 statements. Their auditors (E&Y) have advised that due to the unanticipated absence of their senior statutory auditor responsible for signing off the accounts, these cannot be published until a replacement is found. Arguably there’s nothing untoward here, but the lack of redundancy at the audit partner is interesting.
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#2. Quantum Blockchain eyes £100m cap raise
Something of a rallying call from Quantum Blockchain [AQSE:QBIT] this morning in response to recent media coverage. It’s a short note but seeks to clarify that following last week’s budget, the company is continuing to explore the concept of setting up a private limited partnership investment fund which would target raising £100m of capital for investment in quantum technologies.
#3. Water regulation Ofwat now able to dictate dividend policies.
Ofwat has this morning announced new powers which will enable it to stop dividend payments by water companies if they would risk financial resilience and also allow it to take enforcement action against companies that don’t link dividends to performance. The note adds that the licence changes are designed to both incentivise those companies experiencing financial health challenges to engage with Ofwat promptly, and to allow Ofwat to intervene and take actions faster, where companies fail to take such steps themselves. As always it’s the ability to enforce that counts however and with Ofwat’s mixed record in this space, will it detract investment interest in the sector?
