Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. WPP to acquire machine learning business
Marketing giant WPP [LON:WPP] has announced the acquisition of Satalia this morning. The news was trailed in the press over the weekend with Satalia helping businesses use machine learning to improve their efficiency, pointing to WPP seeking to provide more end-to-end solutions to clients. There’s no value on the deal in the release but media reports suggested a number in the region of £75m.
#2. Mitie Group to dispose of its document management business
Mitie Group [LON:MTO] has this morning announced the disposal of its document management business for £40m to Swiss Post Solutions. The deal is the latest move by MITIE to divest itself of non-core businesses, whilst allowing for reinvestment in high growth opportunities. MITIE will continue to offer document management as part of its integrated facilities management services, but under a preferred supplier agreement with Swiss Post.
#3. BATM Advanced Communications interim revenues 7.7% lower but margins are up
Looking at the small caps, there’s an interesting set of interims out from BATM Advanced Communications [LON:BVC]. The company is involved in biomedical work – including COVID diagnostics – as well as networking and cyber security, so arguably key sectors in the current environment. Revenues are 7.7% lower but margins are up by 630bps, with both sides of the business posting improvements here. The impact of a ventilator project from last year also ensured the comparables were somewhat challenging.