Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Tasty: macro woes continue to blight casual dining sector
Casual dining operator Tasty has interims out today for the 26 weeks to 30th June. These showed revenues down 12% but an improved profitability figure. The company has been working through a restructuring plan, shuttering almost a third of its restaurants but management caution that the ongoing cost of living crisis, persistent high interest rates and weak consumer confidence will all continue to weigh in the second half. The company retains a £3m cash balance but it’s still tough out there.
#2. Revenues jump at STM as company takeover continues
AIM-listed financial services company STM Group has interims out today, showing a solid performance by the company. Revenues are up by around 15%, whilst a significant improvement has been posted in pre-tax profitability. Management note that changes in the interest sharing policy have been instrumental here. The company is currently in the process of being acquired by Jambo following a deal that was agreed at the end of last year, which has left management electing not to declare a dividend.
#3. Profitability in sight for media business SEEEN
The global media and technology business SEEEN has published its interim results today noting fractionally lower revenues but an even greater decline in the cost of sales, boosting gross profits by almost 20% as a result. Management note the success of cross-selling within the business as well as new customer additions and with $1.2m in cash, there’s a belief that the business has sufficient resources to reach profitability.
