Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Wizz Air passenger numbers keep soaring
Eastern European low cost airline Wizz Air (LON:WIZZ) has published June traffic figures this morning. The company continues to see the benefits of moving beyond the global pandemic, with capacity up by over 100% and passenger numbers up by almost 200% as planes fill up once again. There is little in the way of outlook offered here, but one interesting point is the company’s signing of a MoU with Airbus to investigate the potential for hydrogen powered planes, something that could lower costs significantly and bring emissions right down, too.
#2. Tekcapital IPO eyed for portfolio company
AIM-listed Tekcapital (LON:TEK) has provided an update from one of its majority owned portfolio companies, MicroSalt, which operates in the low sodium market in the US. They have signed their first B2B bulk order and the note adds that Tek is considering a listing of MicroSalt on the London market in 2023. The company does have proven form for successfully divesting subsidiaries like this, having floated Belluscura just over a year ago.
#3. ReNeuron full year results highlight cash burn
Sticking with the junior market and ReNeuron Group (LON:RENE) have published preliminary results for the year to 31st March. Revenues are up by 60% as lower costs have fed through to a reduction in losses, although the note highlights that cash burn means the company is only funded until the middle of next year. There’s an ambition to extend this runway through “the continued expansion of its exosomes platform with partners and further monetisation of its legacy product” but challenging times still lie ahead. The company may be working on some very powerful biotechnologies, but this clearly is a cash intensive business.
