Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. S4 Capital well-positioned to profit from economic slowdown
S4 Capital LON:SFOR has a Q3 trading update out, with gross profits up by 29% from the 2021 comparative. The APAC market is lagging, whilst the company’s technology services division is seeing the fastest growth. Given global macroeconomic headwinds and political challenges, the company reports continued momentum into Q4. The company believes that the worsening economic outlook will leave clients seeking a more data-driven approach when it comes to marketing, in turn playing to the company’s strengths and providing further growth opportunities.
#2. Totally interims show turnover accelerating but cash reserves depleted
AIM-listed healthcare services provider Totally LON:TLY has published six month results this morning. Turnover is up 14%, profits up 2.6% and the dividend is being left unchanged at 0.5p per share. One line that may flag concerns with investors is the cash burn rate, which has accelerated as the company looks to embrace growth. The question here however is given the limited profit that is being thrown off, whether a fund raise will need to be tabled.
#3. Joules administrators appointed
Struggling lifestyle retailer Joules LON:JOUL has announced this morning that administrators have been appointed to the company and that shares will be suspended before the market opens for the day. The company has been unable to conclude terms on the bridge financing discussions it was conducting with several parties.
