Three key news stories unfolding as the UK stock market opens. Check out our companies reporting diary for upcoming results from FTSE 350 and selected international stocks.
1. Steady growth at Serco as government demand remains strong
Interims from the government outsourcing specialists Serco LON:SRP were issued this morning with revenues up 5%, operating profits up 2% and operating margins of 6%. The order book is strong, a £50m shareholder buyback has been announced and there’s an 8% uptick in the interim dividend. Management note that the problems their customers face become ever more complex and that should continue to drive demand for services.
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2. Momentum building at Deliveroo, FY EBITDA guidance tightened
Food delivery group Deliveroo LON:ROO issued half year numbers today showing 9% growth in gross transaction value and revenues, with momentum building through the second quarter. The company is currently in the process of being acquired by Door Dash with this expected to complete towards the end of the year. Adjusted EBITDA guidance for the full year has been revised, narrowing in the upper end of the previously stated range.
3. Profits, room rates up at IHG but shareholder payouts driving debt higher
Hotel operator IHG LON:IHG is another heavyweight London listed stock with interims today, noting revenues up 6%, operating profits up 13% and shareholders seeing a 10% increase in dividends. Average room rates are still heading higher although at a global rate of 1.8% and the Chinese market remains in decline but one potential weak spot is the growing debt – which can be largely explained by returns to shareholders. The company remains on track to meet full year expectations.
