Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Topps Tiles outperforms market but macro outlook weighs
Topps Tiles LON:TPT has its Q3 trading update out today, highlighting a 3.9% reduction year on year but comparatively outperforming the wider UK market in the sector which is forecast as being some 10-15% smaller than it was a year ago. Management do believe that the improving macroeconomic environment will serve to reverse the tide but note that the positive impact here is yet to feed through into the sector.
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#2. Strong growth in recurring fee income at Equals proves eye-catching
AIM listed fintech payments company Equals Group LON:EQLS has published its interim trading update. Total revenues are up by more than 30%. Critically there was a big jump reported in the fees component of revenues, reflecting the success of the company’s Solutions platform. The note adds that fee-based revenue is typically more recurring in nature.
#3. Keywords Studios directors recommend final offer from EQT
Keywords Studios LON:KWS has this morning published news of a final buyout offer for the company of 2450p per share. That reflects a 67% increase on the last traded price before the original offer was tabled back in mid-May, offering an enterprise valuation of £2.2m and reflecting a 15.9 times multiple on the adjusted EBITDA. Keywords provides services to 24 of the world’s top 25 gaming companies.
