Three things you need to know in the financial markets this morning from investment writer, Tony Cross
Full year results are out from Wizz Air this morning, Eastern Europe’s largest low-cost airline. Strong growth continues to be seen across the board, despite the adverse effects of rising fuel prices and a more competitive market. Passenger numbers are up by 16% and revenues have risen by almost 20% although margins have been understandably squeezed, down 1.4 percentage points. The company is confident over the outlook and has ambitious plans to expand its fleet with more fuel efficient aircraft.
Legal & General
Legal & General has this morning announced the sale of its general insurance business to Allianz. The division last year wrote £410million worth of business and showed an operating profit of zero, likely making the sale price of £242million look rather impressive to investors.
There may have been shocking news about new car production in the UK released this week, but a trading update from the motor dealers Lookers, released this morning, doesn’t share the pessimistic view. For Q1, new car turnover is up 3% and gross profits are up 4%. For used cars, the parallel metrics are 6% and 1%, whilst aftersales saw turnover up 9%. Economic uncertainty may be hanging over industries like this, but their diversification does at least cover all bases.