Three things you need to know as the UK financial markets open, from Tony Cross.
#1. BATS full year performance on track, mid term outlook more volatile
Looking at the news releases this morning there’s a definite air of seasonal wind-down in play, but there are some updates in play with a trading statement from British American Tobacco LON:BATS to kick matters off. This confirms FY24 delivery as being in line with guidance and an expectation to deliver improved New Category and Combustibles revenue growth in H2 versus H1, although a strengthening USD does seem set to take a modest toll.
In an expectations management move, directors stress they do not expect the journey to achieving mid-term guidance to be linear, but there’s a commitment to keep returning capital to shareholders.
#2. Former CEO re-appointed in Kainos boardroom reshuffle
An interesting boardroom reshuffle at Kainos LON:KNOS where the current CEO is departing with immediate effect after a 15 month tenure at the helm. He will be replaced by his predecessor, Brendan Mooney, who worked for Kainos for more than three decades and led the business through a successful IPO in 2015, turning the company into one of the UK’s leading IT providers. Quick appointments like this can result in meaningful market movements in either direction but with the share price wallowing around five year lows, will the bias be on the upside?
#3. Full year outlook upgraded for a third time at Audioboom
A trading update from Audioboom LON:BOOM is also out today with the board noting a strong Q4 performance and upgrading full year guidance for EBITDA profit to be at least $3.1m, up from market expectations of $2.8m. Significant KPI growth has been reported for November, with the company’s evolving strategy offering resilience against negative changes off the back of an iOS upgrade. That has driven a focus onto higher margin products and FY revenues are set to be at least $73m. This is the third upgrade to guidance provided for FY24.
