Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Bellway forward bookings show signs of market recovery
There’s a full year trading update out from Bellway LON:BWY this morning noting 7,654 completions and an average selling price of £308k, both numbers down on last year’s figures but marginally ahead of expectations. Perhaps more importantly the forward order book is strengthening with 5144 homes on the list now versus 4411 a year ago.
A moderation in mortgage rates has also been seen as supporting customer demand although it’s worth noting that the decline in volumes has had a punitive impact on margins, which are now expected to be around 10% compared to 16% a year ago.
#2. Hargreaves AUM up 16% as bid terms finalised
Hargreaves Lansdown LON:HL. published full year results this morning, along with news that the directors had reached agreement with suitor Harp Bidco to acquire the business for 1140p per share on a cash basis. Net new business inflows were down 13% at £4.2bn, assets under administration rose 16% to £155bn and the total dividend has been increased by 4% to 43.2p. With the shares closing last night at 1077p, there’s some upside left on the table, although that will likely vanish in early trade.
#3. Economic backdrop cause for concern at Murray International
Investment trust Murray International [LON:MYI] has published its half year report this morning, noting little change in terms of assets on an annualised basis, although the discount has expanded from 4% to 8.7%. In terms of the outlook, there’s concern over both the macroeconomic and geopolitical landscapes and whilst central banks may have navigated away from recession for now, this could change quickly. The dividend has been increased in each of the last 19 years and management are confident this can be maintained.
