Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Growing laundry operations boost ME Group’s H1 performance
ME Group LON:MEGP, the instant service equipment company, has this morning delivered a full year trading update. This notes a strong performance in H2 which means the business is on course for another year of record profits, although this is in line with previous board expectations. Pre-tax profits are set to be 10% higher, with the company’s laundry operations being a key driver of growth. The company remains well capitalised and highly cash generative, with full year numbers due in February 2025.
#2. SIMEC Atlantis tidal project now generating maximum current
A note from SIMEC Atlantis LON:SAE this morning which notes that its MeyGen tidal power generation site has seen the successful deployment of its fourth turbine, putting the facility at full power and generating a constant 6MW of energy. This proof of concept is seen as unlocking the technology to be applied at commercial scale.
#3. Fleet renewal drives asset base higher at ZIGUP
ZIGUP [LON:ZIG] is a mobility solutions provider and has today issued interim results to 31st October. Revenues are down by a fraction of one percent but profits have taken a beating, sliding 42%. However fleet renewal does seem to have driven up the asset valuation, paving the way for a 6% increase in the mid-year dividend. Recent vehicle supply contracts have provided good visibility for calendar 2025, helping offer management confidence over the outlook, which is unchanged and in line with market expectations.
