Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Tyman board recommend buy out offer
Another day and another name appears set to disappear from the London stock market with the board of Tyman LON:TYMN announcing that they have reached terms with US-listed Quanex in a cash and shares deal which offers around a 35% premium to investors on Friday’s closing price. The deal is seen as delivering meaningful economies of scale.
- UK Stock Market News: Hornby, Topps Tiles, Likewise
- Three Quick Facts: Sage, Hornby, British Land
- Small Cap Stocks: Intelligent Ultrasound, Hornby, Sondrel
#2. Shed full of inventory derails Hornby progress
Hornby LON:HRN has published a Q4 trading statement this morning, noting that revenues are down 8% YoY as a result of the timing of Easter and also shipping delays following disruption in the Red Sea. As a result, full year sales are only marginally ahead, whilst margins have been eroded.
D2C sales are up an impressive 18%, but underlying losses are mounting whilst high debt and inventory levels also give investors little cause for cheer. Can the upbeat assessment about momentum building in the second half turn the tide?
#3. Mobico: underperformance for full year, better outlook
Mobico Group [LON:MCG] has issued full year and Q1 numbers this morning. For FY23 on a constant currency basis, revenues are up by more than 11% although adjusted operating profits fell by 11%, with cost inflation and a reduction in COVID subsidies being attributed. The expectation is that this metric will bounce back in FY24, but management are upfront in their admission that results did come in below expectations.
The CFO is also to leave and Q1 numbers show revenues up by 6.7% in line with previous forecasts, news that might be sufficient to save the share price being beaten any lower.
