Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Robert Walters latest recruiter to note headwinds
A Q2 trading update for recruiter Robert Walters is out this morning and these numbers continue the theme seen from others in the sector. Net fee income for the period is down by 15% although there’s limited variance across territories here. Management position this as a rebasing following the post-pandemic peak but admit that the period of market adjustment is taking longer than they would have expected, with the position not expected to improve before 2025.
#2. New CEO checks in for Burberry
Change at the top of Burberry with news this morning that the CEO is standing down with immediate effect, to be replaced by American Joshua Schulman, an experienced luxury fashion and retail business leader. Joshua has previously headed high profile brands including Michael Kors and Coach, and will start the new role on Wednesday. Abrupt departures like this can shock the market but will the expectation of a brighter future be sufficient to maintain investor support?
#3. ME Group posts strong H1, set for record FY
Instant service equipment company ME Group has published interim results today, noting growth in both revenue and profit. Interestingly the growth of photo booths remains key with a 12.6% increase in the number of machines operated, whilst the laundry business is noted as being the fastest growing division.
An interim dividend of 3.45p is on the cards, making for a 16.2% increase year-on-year and that’s all in the face of meaningful currency headwinds. Management add that H2 has started well and they believe the company is on course for another record year of profitability.
