Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
1. Unscheduled trading update from Serco offers welcome news for investors
There’s some welcome news out from Serco (LON:SRP) this morning with an unscheduled trading update. The company notes that better than expected performance and a positive outlook has resulted in full year guidance being increased, with underlying trading profit upgraded by around 10%. Critically, declines in COVID-related revenues are being offset by growth elsewhere.
2. Key ownership stake in BT called into question by government
BT Group (LON:BT.A) has this morning advised the market that the increased holding by European mass media company Altice has been called into question by the government. This relates to the national security and investment act, designed to protect ownership of key parts of the country’s infrastructure. Progress here will be closely followed, especially if the outcome is a forced divestment of some of the holding.
3. Johnson Matthey: Full year numbers and strategy update
Full year results and a strategy update are out from Johnson Matthey (LON:JMAT) today. Revenues are up 4% and underlying results are in line with market expectations, whilst investors are being rewarded with a 10% increase in the dividend. The note also outlines the shift away from battery materials and divestment of healthcare holdings to focus instead on the transition to net zero. That will see the company continue to play on its platinum group metals speciality and rapidly scale investment into hydrogen as it looks to put decarbonisation at the heart of its mission.