Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Pennon’s half year results show impact of heavy investment; Divi maintained
Water utility company Pennon LON:PNN has published half year results this morning, noting a 9% increase in revenue although heavy levels of investment have taken a toll on profitability. The company is also announcing fresh infrastructure investment to ensure it is prepared for future requirements. Despite any perceived downside here, the dividend policy remains unchanged at CIPH +2% which equates to a 10.8% uptick or 12.96% per share.
#2. Loungers growth continues apace
Bar operator Loungers LON:LGRS has results for the 24 weeks to 2nd October out today. The company continues to expand its estate, having opened a further 15 properties year to date, whilst revenues continue to march higher, too. However changes to VAT support have impacted profitability, although coming in at more than £6m, that’s still treble the pre-pandemic number. Momentum is being maintained however with the business outperforming the sector and whilst the short term outlook is uncertain, management are optimistic about the potential for both existing lines and also the new roadside brand, Brightside.
#3. Future shows bumper profit growth
Global media platform business Future LON:FUTR has full year numbers out today, with the company’s diversification strategy seen as being behind the delivery of record profitability. Revenues are up 36% whilst profits added 39%, and management expect to deliver modest growth on these numbers in the new year. Whilst macroeconomic conditions may be seen as challenging, the company sees itself as having something of a unique position on which it intends to build.
