Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Strong second half from Serco, momentum set to be sustained
There’s a trading update out from Serco LON:SRP this morning headlining with a strong H2 performance, improved cashflow and a resilient outlook for 2025. Perhaps most notable here is the 9% increase in operating profit, with that being heavily weighted in the second half whilst net debt continues to fall, is now forecast to be £145m by year end and will decline further in 2025 to £60m.
#2. Pipehawk management optimistic that profitability will return
Engineering firm Pipehawk LON:PIP issued a trading update ahead of today’s AGM, noting a positive start to the financial year with management cautiously optimistic that the business will see a return to profitability despite the backdrop of challenging trading conditions. Unaudited revenues for H1 to Dec 31st are set to be significantly ahead of the comparator.
#3. Corporate update from Chill but shares still suspended
There’s a short update out from Chill Brands LON:CHLL as well. The company has had a challenging year, facing a range of external and internal issues and the shares have been suspended since the summer. Results aren’t expected to be completed until some time in Q1, but a US law suit against former directors has now been concluded, which at least removes one element of uncertainty.
