Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. The Restaurant Group leisure division offloaded with £7.5m payoff for suitor
The Restaurant Group LON:RTN has announced it has entered into an agreement to sell its Leisure business, comprising of 75 units. Unlike other divisions, Leisure has failed to recover post-COVID, so the disposal to Big Table Group will come with a cash contribution of £7.5m. The investment is seen as worthwhile as it offers TRG a high quality, focused group of venues as a result.
#2. MP Evans rising input costs hammer profits
MP Evans LON:MPE is in the contentious area of palm oil production and has announced half year results today. Production is up marginally, but prices are under pressure off a back of a number of inflation-related measures. These are expected to start abating but saw production costs rise 25% and resulted in a 62% drop in operating profits. The dividend is being maintained.
#3. Sportech EBITDA doubles, company eyes listing cancellation
Betting technology business Sportech LON:SPO has published interims to 30th June today. Gross profits are up 7.2% whilst EBITDA more than doubled against the comparative. However in another blow for the London market, the note adds that being mindful of the cost of maintaining a listing, the company is proposing a cancellation of its stock. If approved, the move is expected to deliver significant cost savings and strengthen the financial position. This has been a highly cash generative business, returning £121m to shareholders since 2017.