Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Peer group outperformance sees SThree interim dividend hike
SThree LON:STEM, the specialist recruiters for science and engineering, have this morning issued interim results. Revenues are 7% lower buy operating profits have dropped by a mere 1% which has been sufficient for management to propose a modest uptick in the half year dividend. That’s certainly a better performance than has been seen by many sector peers and the company notes a strong contract order book as well as £90m in cash. Full year performance is set to be in line with expectations.
#2. Mitie revenues up but debt burden builds
Facilities company Mitie Group LON:MTO issued a trading update for the three months to 30th June this morning. Acquisitions helped revenues grow by more than 10% year on year whilst the value of new contract wins had broadly doubled. So whilst trading momentum appears robust it’s worth noting that net debt has more than doubled from the same time a year ago to £182m, a number that does seem worthy of note. With the Mitie share price up 25% year to date, can this trajectory be sustained?
#3. New lettings bolster rent income at Warehouse REIT
Warehouse REIT LON:WHR has posted a bumper set of Q1 numbers this morning with new transactions from the period reflecting an uptick in value of 15.1%, with a significant overweighting being seen in values ascribed to new lettings. The company’s asset disposal plan also continues to move forward and now means that 90% of leases by contracted rent are now undertaken on an open market basis.
