Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. N Brown: inflationary pressures proving relentless
N Brown LON:BWNG has issued full year results this morning. Revenues are off around 5%, whilst the adjusted EBITDA declined close on 40% although this was in line with management expectations. This is reflective of broader market conditions and declining consumer confidence, with the picture shows no sign of improving with Q4 revenues down almost 18% and the direction of travel being sustained into the new financial year. Ongoing inflationary pressures are also seen as a concern for the business.
#2. Gfinity exits eSports market
Technology and media company Gfinity LON:GFIN has announced the disposal of around three quarters of its stake in wholly owned subsidiary Athlos for a consideration of just £1. The business has also announced that it is exiting the Esports market with the directors seeing limited growth opportunities here, instead focusing on the gamer website industry. The use of AI to reduce costs is flagged in the note and is also credited with helping deliver an upturn in trading last month. Given the big uptick seen by the stock on Monday, the next steps will be interesting to watch.
#3. Dominos Pizza completes German disposal
Dominos Pizza Group LON:DOM has advised this morning that it has now completed the disposal of its German business, for a total consideration of almost £80m. The funds will be flowed through the company’s capital allocation framework with further detail in the interim results which are due for release in August.
