SSP Group, the provider of branded food and beverage outlets across much of the nation’s travel network, published interim results this morning. Despite continued growth in traveller numbers and a 19% uptick in revenues, some investors have been quick to sell down the stock, with debts mounting and the cash burn rate increasing. The stock was trading down by as much as 9% before 9am.
Interim results from Irish food producer Greencore were also published this morning. The FTSE-250 listed firm may have seen headline revenues fall marginally but profits surged as the company exited a number of low margin contracts. This successful focus on profitability has played out in an improved return on capital and the company also announced that it would commence a £30m share buy back along with dividend payments to take total returns for the year to £50m. Full year operating profits have also been upgraded. Shares were some 15% higher just over an hour into the day.
Another day, another company set to fall from the London stock market as the great fire sale continues unabated, with US listed Advance Energy Industries notifying the City that it has tabled a £571m offer for XP Power. That equates to a 68% premium to last night’s closing share price and is the third such bid that the suitor has made, with each being rejected by XP’s board. However AEIS has now elected to go public, soliciting a response from XP who note that despite the 68% premium that’s being offered this still materially undervalues the business. Shares are up around 48% in early trade.
Headlines we expect on Wednesday
Marks & Spencer Final results
This time last year Revenues £11.9bn, Pre-tax profits £476m, Dividend 0p
Mitchells & Butler Interim results
This time last year Revenue £1,282m, Pre-tax profits £40m, Cash on hand £142m
