Three Quick Facts: WM Morrison, Rolls Royce and BATM Advance Communications

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11th March 2021
Tony Cross
Wm Morrison PLC [LON:MRW], Rolls-Royce PLC [LON:RR], BATM Advance Communications

Three things you need to know in the financial markets this morning from investment writer, Tony Cross.

WM Morrison Supermarkets

Full year results are out from WM Morrison [LON:MRW], the supermarket operator, this morning. Headline figures show sales excluding fuel up by 8.6%, with Q4 growth of 9%. Profits have however been hit by COVID costs, with the company noting a fall of 50% here. Had government rate relief not been repaid, pre-tax profits before exceptional items would have been up 5%. Expectations for the coming year are for improved profitability, suggesting that many of the costs incurred in managing the COVID response aren’t set to be repeated.

Rolls Royce

It’s been a turbulent year for Rolls Royce [LON:RR] and that’s laid bare in today’s full year numbers. Revenues fell by around a third, tipping the company from a £942m gross profit last year to a £210m loss. A global aerospace market which has been in a state of catharsis is the key driver here, although the company does benefit from a degree of diversification. That said, the note sees a downgrade of the recovery, with a base case expectation of an 80% recovery in aircraft flying hours by 2022, down from previous forecasts of 90%. Cost reduction measures have however been deployed and a series of disposals are planned to bolster the cash position in the medium term.

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BATM Advance Communications

There’s an interesting note out from BATM Advance Communications [LON:BVC] this morning. The company has been involved in COVID testing but has today announced a no-swab saliva based test against the virus. It works on the basis of being an RT-PCR rather than lateral flow test which also serves to improve the accuracy of the result, whilst overcoming the risk of the wrong part of the nose/mouth being swabbed in a conventional test. The results do however still need to be analysed in a lab, although this can be mobile and the company notes cruise lines may be a specific area of interest here.

This article is not investment advice. Investors should do their own research or consult a professional advisor.

Tony Cross

Tony Cross is a market commentator with over 15 years of experience, producing compelling, insightful copy for journalists and investors alike. Focusing on macroeconomics, UK blue chip equities and inter market analysis, Cross's commentary is well regarded for its clarity and ability to cut through the waffle. He has been quoted in publications as diverse as The Financial Times, The Times, The Guardian and The Sun. He has also been a regular guest on both Share Radio and TipTV.

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