Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Ten Entertainment agrees takeover
Ten Entertainment Group LON:TEG has this morning announced it has reached terms with Neon Buyer Limited to be acquired in whole at a price of 412.5p per share. That represents a 33% premium to last night’s closing price and is 23% above the all time closing high, reached just before the COVID pandemic began. Almost 40% of shareholders have committed their support for the deal so far.
- Companies Reporting: Ashtead, Currys, TUI
- Companies Reporting: TUI, CVS Group, JD Sports
- Companies Reporting: Aviva, Dowlais, TUI
#2. British American Tobacco trading update lacking spark
There’s a pre-close trading update out from LON:BATS this morning, confirming full year EPS guidance and noting that its new category products are expected to break even around two years ahead of the original target. That’s helping balance the books however as on a wider basis, management add that macroeconomic pressures in the US are weighing on sales of traditional tobacco products, organic revenue growth is set to come in at the lower end of expectations and modest FX rate headwinds will also take a toll.
#3. TUI: bumper summer sales & optimism over FY24
Full year results from [LON:TUI] are out today, headlining with underlying EBIT up 139%, in line with expectations, with the peak Q4 summer season performing well. Forward bookings for the winter continue to perform well and to date stand 11% higher than they were a year ago. This is setting the backdrop for bumper expectations in FY24, with revenues set to rise by at least 10% and underlying EBIT tipped to add more than 25% but given the sluggish economic performance in the Eurozone is this all a bit ambitious?
