Here are three developing stories you need to know about at the UK stock market open, from Tony Cross.
1. No signs of recovery in recruitment market
Recruiters PageGroup LON:PAGE have issued a Q4 trading update this morning which makes for less than stellar reading. Revenues are off almost across the board, with European markets the worst affected although the US did manage to post some vert modest growth. Full year profits are now expected to come in at the lower end of the market consensus range. Fee earner headcount has also reduced but despite that, productivity is down 5% QoQ.
2. Gross margin outlook upped
There’s a full year trading update out from Oxford Nanopore LON:ONT this morning. Second half performance accelerated in line with guidance and the medium term outlook has been reaffirmed. Gross margins for the full year are set to be slightly above guidance, a metric that is tipped to continue improving and combined with ongoing cost disciplines, this should deliver EBITDA breakeven in 2027 and positive cashflows in 2028.
3. Entain bets on investor reaction to “operator friendly” Q4
In response to industry peers having recently reported a swing towards more favourable customer outcomes, Entain LON:ENT has this morning issued an update that reiterates its outlook for the full year, something that management will presumably be hoping is sufficient to recover some of the 15% sell off which was seen last week. Indeed the company notes that Q4 has seen more operator-friendly outcomes, with EBITDA now set to land at the top end of the previously stated range.
