Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Interims from Kainos reiterate softer near term outlook
Kainos LON:KNOS has published interim results this morning, with the IT services provider noting excellent performance for its Workday Products, although the services division has been somewhat more subdued, a combination that has seen revenues drop by 5% but pre-tax profitability maintained. The company notes it continues to increase overseas sales and that the sales pipeline remains robust but softer market conditions are expected to prevail in the near term. A £30m share buyback program has also been announced.
#2. Aquis agrees terms for sale to Switzerland’s SIX
Exchange operator Aquis LON:AQX has published a note this morning advising that management have reached terms with Swiss counterpart SIX for a takeover. A price of 727p per share has been agreed on an all cash basis, at a 120% premium to the Aquis closing price on Friday. The offer gives Aquis an enterprise valuation of £194m. for which SIX gets the opportunity to extend its pan-European liquidity footprint, unlocking new markets.
#3. NatWest buys £1bn of stock from HM Government
It has been announced this morning that UK Government Investments Ltd has sold down a further £1bn of its NatWest LON:NWG, reducing the State’s ownership of the bank down to 11.4%. The bank was the actual buyer and the shares will be cancelled as a result. The price paid per share was 380.8p.
