Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Full year results from Wizz Air [LON:WIZZ] are out today, with the low cost airline reporting a sharp reduction in performance for the period to March 31st. Passenger numbers are down almost 75% and the EUR281m profit from a year ago has morphed into a EUR576m loss. Management expressed some cautious optimism over the outlook, although acknowledged that the resumption of travel has started later than they would want. Expectations are that 30% of capacity will operate in the current quarter, with full capacity returning in the next financial year. The company has EUR1.6bn in cash and notes a quarterly cash burn in the last three months of FY21 of EUR84m.
An interesting note from Kingfisher [LON:KGF], owners of B&Q and Screwfix, that they have signed a £550m revolving credit facility which is tied to responsible business targets. The group benefits from lower interest rates if it delivers specific targets aligned with its Responsible Business plan. Targets in question include tackling climate change, creating more forest than the company uses and a commitment to fixing bad housing – a project the company has been involved in since 2016. This loan facility replaces two existing facilities. No details of the financial benefit of achieving the sustainability targets are given.
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Rounding off with a note from AIM Listed Quantum Blockchain Technologies [LON:QBT]. They have this morning announced an in-house R&D program for bitcoin mining, with a focus on optimising the process – including reducing energy consumption. This seems encouraging, although with environmental concerns running rife and BTC’s performance lagging that of other digital assets, investors may ask if this ship has already sailed.
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