Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Boost for Hammerson shareholders amidst disposal news
Hammerson LON:HMSO has published a note this morning advising that the company has disposed of its stake in Value Retail for an enterprise valuation of £1.5bn, generating cash proceeds of £600m. The money will be used to pay down debt, reinvest into more lucrative assets and probably most crucially to fund a £140m return to capital for investors, which equates to 10% of the market capitalisation on Friday.
#2. Is a summer of bargain Ryanair fares on the horizon?
Ryanair [LON:0RYA] has Q1 numbers out this morning and although only listed in London as a CDI remains a popular investment for many. Despite a 10% increase in passenger numbers, load factors were down 1% and average fares down by 15%, whilst operating costs rose 11%. The early Easter break impacted performance, whilst higher staffing costs took a toll and the note also highlights softer pricing for Q2 with fares expected to be materially lower than last summer. Profits for the period fell 46% to €360m.
#3. Bumper H1 numbers as MoneySupermarket customers look to save
MONY Group LON:MONY, the company behind MoneySupermarket and MoneySavingExpert, has this morning issued interim results. The group notes its best ever H1 revenue and EBITDA performance and management encapsulate the company’s proposition well, adding that they make money if their customers save money – an ideal play as the cost of living crisis persists.
The business remains on track to deliver against full year expectations, with the note adding that the boost from insurance sales is now normalising and there’s no material revenue impact expected from energy switching.
