Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Oxford Biomedica well-funded, losses falling
Oxford Biomedica LON:OXB has interim results out this morning, noting an 18% increase in revenues, whilst a reduced cost base has sliced more than a third from EBITDA losses. Management note that the business has sufficient capital to deliver against its current financial plan, whilst the revenue backlog is growing, now standing at £120m against £94m a year ago.
Guidance for the short and medium term is being maintained, but arguably it could be that strong cash position that offers the most cause for cheer.
#2. REA ups bid for Rightmove – again
Australia’s REA has published a note this morning to flag to investors that an improved offer has been made for Rightmove LON:RMV at an implied 749p per share – up from the previous bid of 705p – but that the board of the target company continue to deem the offer as undervalued. With the takeover deadline now fast approaching, REA is hoping this move will help better identify investor sentiment behind the deal.
#3. Galliford Try wins another major water contract
Construction company Galliford Try LON:GFRD has a note out today advising that it has been appointed to Wessex Water’s AMP8 framework, which is the client’s route to meeting regulator mandated investment targets.
Galliford has been awarded work worth £400m, with the announcement following news that it received a similar mandate from Southern Water worth around £500m. Whilst there’s no additional detail, investment in the water industry seems set to soar in the coming years, so exposure to the sector will be no bad thing.