Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Rentokil
Full year numbers are out from Rentokil Initial this morning, with the company reporting a 5% increase in revenue despite a year of turmoil. The hygiene division has perhaps unsurprisingly been the stand out performer, especially in the second half of the year where revenues were up by over 60%. The company also launched a new disinfection service in 60 countries, which delivered £225m worth of income. Management note that there’s still uncertainty off the back of the COVID-19 pandemic but add that they are confident of making further progress in the year ahead. It is proposed that dividend payments are reinstated and medium term growth targets remain unchanged.
B&M European Retail
There’s a trading update out from B&M European Retail, which contains a few key points. Further to the update of January 7th, EBITDA forecasts are being increased by just under 10%, however there’s an air of caution over figures for the next financial year, which starts at the end of March. As a result of stockpiling at the start of the pandemic, the business is going to be reporting against some tough comparatives. This will impact many in the sector and is a timely reminder of the fact those who saw dramatically accelerated growth in 2020 won’t all expect to maintain the momentum.
Remote Monitored Systems
A quick note from Remote Monitored Systems, the company that has been pioneering a face mask made from anti-viral materials. The AIM listed play has been volatile over the last few months, with commissioning problems on new kit testing investor confidence. Today they have announced a number of distribution agreements including one based on selling one million masks per month, although the note concludes that there are still “a number of issues” with production. The share price reaction to this latest update may well be worth watching.
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