Three developing stories at the UK stock market open.
1. Revenues down but profits up at BT
There’s a nine month trading update out from BT Group LON:BT.A this morning with record customer demand being noted but income is under pressure, with competition in broadband and a fall in equipment revenue both sliding. Reported profits for the third quarter are however 1% higher as a result of EBITDA growth and management have reaffirmed guidance, both for the full year and into the medium term.
2. Serco acquires US business, adds 1,000 staff
Amidst the ongoing news of UK companies being acquired by overseas entities, a change of course here from Serco LON:SRP who have announced the purchase of Northrop Grumman’s mission training and satellite ground network communications software business for £264m. This will turbocharge the business in North America, which has been growing apace in recent years and will see the addition of 1,000 new staff. The deal is expected to add £242m of revenue and £27m of profit this year, with the deal funded by cash.
3. Saga travel sales up, H2 profits beat guidance
There’s a six month trading update out from Saga LON:SAGA this morning, headlining with news that pre-tax profits were marginally higher than the comparative and ahead of previous guidance. Forward travel bookings are strong and the company has also announced the successful refinancing of its corporate debt in full, strengthening its financial position and enhancing liquidity. Momentum in cruise and travel is expected to be maintained, whilst management anticipates that Insurance Broking earnings will fall in the short-term, ahead of the start of the partnership with Ageas.
