Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Surging revenues at SSP
SSP LON:SSPG the retail operator at transport hubs worldwide, has this morning issued full year results showing a 38% uptick in revenues and an almost 500% uplift in operating profits. The dividend has been reinstated and the company reports making significant progress against its strategic priorities.
Whilst management acknowledge macroeconomic and political uncertainty, they also appear confident that the travel market will now remain resilient. Net sales growth of 6%-10% is forecast for FY24.
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#2. On The Beach passenger numbers grow, forward booking momentum upbeat
Travel agent On The Beach LON:OTB has issued numbers for the year to 30th September this morning. These show adjusted total transaction volumes up around 25% YoY, with gross profits advancing to £114m from £94m.
The Summer 2023 performance was seen as being especially pleasing with passenger numbers up 13% from the comparative, contributing to the strength of the current cash position. Forward bookings are at record levels and the key Q2 booking period is being approached with what management term significant momentum.
#3. Drax: confident full year outlook
Drax Group LON:DRX published a trading statement, noting that full year adjusted group EBITDA is expected to be in line with market estimates when reported in late February 2024. One stand out however is that the pumped storage and hydro solutions division of the business is eyeing a significantly improved performance as the company’s facilities continue to deliver short term power solutions to the grid.
The imminent publication of a National Audit Office review into the UK’s biomass strategy is expected to be published this month, which could offer further momentum for the share price.
