Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Interims show challenging H1 performance
MusicMagpie issued interim results this morning. The music and technology reseller acknowledges challenging market conditions, whilst numbers have also been impacted by a change in the business model being deployed in the US. Revenues for the first half fell from £62m to £54m although UK technology sales rose slightly and cost overheads were also reduced.
Management are cautious over the near term outlook given the economic situation but note that sales are typically weighted in the second half.
- Small Cap Stocks: musicMagpie, Emmerson, Arkle Resources
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#2. Restructuring plan already delivering EBITDA improvements at Tasty
Casual dining operator Tasty issued full year results this morning noting revenues up by 6.5% and adjusted EBITDA up by close on 70%. That’s despite the cost of living crisis and inflationary pressures continuing to weigh on performance but a court sanctioned restructuring plan allowing the business to focus on its most profitable sites does appear to be yielding results. Significant improvements to EBITDA are expected over the next 2-3 years.
#3. Nightcap announces cancellation of listing
Nightcap, the fast growing bar operator which was formed to pick up distressed assets post-pandemic – and was recently close to buying out Revolution Bars – has this morning thrown in the towel on its own public listing. Citing high costs, poor liquidity, the valuation and the ability to raise fresh capital at a realistic price, management have determined that the public market is doing the business no favours in the longer term. Shareholders representing 76.9% of the issued capital have undertaken to support the move – above the required 75% threshold.
