Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Music Magpie profit downgraded as headwinds grow
Music Magpie has issued a trading update, noting that the uptick in H2 performance it had predicted back in July, whilst evident, wasn’t as strong as had been envisaged. Cautious consumer behaviour in August and September has seen slower growth of outright sales which hasn’t been offset by other channels. As a result this pattern is now expected to run through the peak trading period ahead of Christmas and the company notes it is prudent to reduce expectations as a result of the worsening economic outlook and increasing living costs. Profit for the year to 30th November is therefore expected to be below previous expectations and those of the market.
#2. 3i portfolio update flags international exposure
3i Group has issued a portfolio update ahead of its capital markets seminar taking place this afternoon. The company notes good performance across the majority of its book although some headwinds are being seen in assets exposed to discretionary spending. However with the Pound testing 50 year lows against the US Dollar this morning, the note that 87% of the portfolio is denominated in foreign currency has the ability to boost sentiment, too.
#3. Frasers’ mandatory cash offer for MySale
Frasers Group have this morning tabled a mandatory cash offer for the outstanding shares it doesn’t already own in MySale. The move follows an agreement with a 10% shareholder to acquire their stake in the business and is a result of rules laid down in the takeover code. Directors of MySale had previous dismissed the Frasers offer of 2p per share as being too low.
