Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
WM Morrison Supermarkets
There’s a note out from retailer WM Morrison Supermarkets [LON:MRW] this morning regarding the takeover offer which was reported in the weekend press. A private equity firm – CD&R – has made a play for the company, offering 230p per share. This is just over a 50p premium from Friday’s close but the board have rejected the bid as undervaluing the company’s future prospects. The share has been seen as something of a laggard of late, so the market reaction today and any counter offers in due course will be closely followed.
There’s a rather benign trading update out from Capita [LON:CPI] this morning, noting that the company has seen an improving trend to trading performance in the first half, in line with expectations. Contract wins mean that the business is on course to deliver revenue growth for the first time in six years. The company also highlights better than expected cash collection – something that has been reported by many consumer facing operations – again hinting that for many the financial impact of COVID and the accompanying lockdowns hasn’t been as bad as was feared.
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There’s a short trading update out from Ilika [LON:IKA] this morning, the AIM listed solid-state battery technology company. They expect to report full year results on July 6th but in the interim have published an update to say that the performance has been in line with management expectations. That translates to revenues sliding to around £2.3m from £2.8m a year ago and an EBITDA loss of £2.3m, up from £2.1m. Shares were pressured last week – the question is whether this will lead to more weight on the downside.
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