Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Profits slip at Ryanair as softer airfares take a toll
Ryanair [LON:0RYA] has half year numbers out this morning with the low cost airline. These highlight the impact that softer air fares – down 10% against H1 FY23 – are having on headline figures with post-tax profits down by 18% against the comparative. Customer numbers and market share are both growing but so are operating costs. However looking at the longer term, management also believe that short haul capacity constraints across Europe in the medium term will help drive both profitability and passenger numbers.
#2. Better than expected revenues from AFC, company welcomes govt. policy
There’s a full-year trading update out from AFC Energy LON:AFC today noting revenues of £4m, slightly higher than had been anticipated, with growing demand being seen for the company’s hydrogen solutions. There’s a focus on scaling that growth for FY25, whilst initiatives announced by the new UK government are also seen as encouraging.
#3. Slew of contract wins from Chemring
Chemring LON:CHG has this morning posted news of contract wins worth a total of £278m, with management noting that these significant contract wins highlight the long-term customer relationships, with further evidence of growing demand for products, reinforcing Chemring’s position as a key supplier to NATO.
