Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Ocado’s new deal with South Korea’s Lotte
Ocado LON:OCDO has this morning advised the market that it has entered into a partnership with South Korea’s Lotte Shopping to develop the company’s online business. The two companies will develop a network of customer fulfilment centres across the market, with Ocado’s in store fulfilment solution being rolled out across physical branches. The fee structure is similar to what has been agreed with other retail partners and is expected to deliver significant long term value to Ocado. Cap Ex will be weighted in 2024 and no cash fees will be recognised until operations commence. Whether that’s a red flag to investors remains to be seen.
#2. Rentokil Q3 numbers show revenues up 10%
Rentokil Initial LON:RTO has issued Q3 numbers today which saw total revenues up by a little over 10% on a constant exchange rate basis. Growth continues on both organic and acquisition led agendas, with the Terminix merger being a significant part of this. Completion here is tipped to result in synergies of $20-$25m by year end and means that more than 60% of all revenues are now dollar denominated.
#3. Failed loan repayment puts Rambler into default
Rambler Metals & Mining LON:RMM has provided an update on its financial position this morning. The company was due to make a principle repayment to Newgen Resource Lending yesterday but this has failed to occur, pushing Rambler into a state of default. Interest repayments have been suspended since September. The two sides are working to find a solution and operations at the Rambler site continue regardless but this is unlikely to bolster confidence in the stock.
