Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Bumper trading update from Mitie
There’s a full year trading update out from Mitie Group LON:MTO this morning, noting record revenues of at least £4.5bn, the operating profit has increased to at least £200m – up 23% YoY – and the share buy back program is to continue, too. Those numbers come against strong comparatives and the company continues to make new contract wins covering an ever-wider scope. The order book is healthy and there’s a £19bn pipeline of work, too.
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#2. Market remains sluggish for Page, no further reductions in headcount
Recruiter PageGroup LON:PAGE has Q1 numbers out today, noting gross profits down 13% YoY, with Asia Pacific the worst performing market as a result of currency headwinds and the UK not too far behind. Management note that the underlying market remains strong but add that conversion of final interviews to acceptance remains challenging as both client and candidate sentiment is subdued. However the company states it will keep fee earner headcount stable from here as it wants to be well positioned when the improvement kicks in.
#3. Schroders sell down Gresham as management try to complete bid
Gresham Technologies LON:GHT announced it had been the subject of a bid last week, which management were recommending. Today the company has issued a note advising that Schroders, who held around 9% of the stock and had previously offered their support for the deal, had since sold down more than half of that holding. Is Schroders hedging its bets here on the basis that the deal might not complete, or was it simply a quick move to free up some cash?
