Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Interim results from Vertu Motors [LON:VTU] covering the six month to August 31st have been published this morning, showing significant losses in the first quarter as a result of lockdown, but the number was comfortably eclipsed by a rebound in profits for the subsequent three months. In light of this, plus the company’s performance in September, the board notes that it has confidence of seeing a strong financial outcome for the full year.
Interim results from Tesco [LON:TSCO] this morning show a close on 7% increase in group revenues, with the company having adapted to meet the shift in UK customer habits. Grocery sales were up almost 10% whilst clothing fell by 17%. One interesting stand out was the sharp fall in fuel sales, which slipped from £3.5bn a year ago to just a shade over £2bn, but regardless the company has posted pre-tax profits for the period of £551m, up close on 30%.
G4S [LON:GFS] has published a note this morning, knocking back the latest attempt by GardaWorld to bid for the company. The release doesn’t hold back in terms of the prospective valuation, the acquirer’s business approach, claims misrepresentation of the facts and notes Garda’s poor track record in terms of delivering shareholder value. Ultimately any publicly listed company is by virtue always up for sale and it’s down to investors to see where the value lies, but with shares trading at a premium to the offer price, it suggests an improved bid will be needed if this is to succeed.
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