Three important things you need to know from across the markets this morning from investment writer, Tony Cross.
BAE Systems
Air Astana announced to the market that it was planning an IPO which would see GDRs (Global Depositary Receipts) admitted to trade in London with the underlying securities listed on the Astana International Exchange and the Kazakhstan Stock Exchange. Might seem like a somewhat out there note to be flagging, but London-listed BAE Systems owns 49% of the company owing to a complex deal that dates back to the turn of the millennium. With some suggesting that the IPO could realise as much as $1bn, BAE Systems shareholders would be set for a tidy pay out – apparently the original investment was for just a few million dollars - although wider geopolitical uncertainty means there’s no shortage of demand for BAE’s main defence products right now, either.
Burberry
The iconic fashion brand delivered a quarterly trading update this morning which was the stock slump to the foot of the FTSE-100. Down 8% at copy time, the company has revised its full year profitability forecasts around 25% lower, with demand in the luxury goods sector globally biting. The only area of growth was Asia Pacific although South Korea posted some notable contraction – whilst revenues from the US were also 15% lower year on year. The cost of living crisis is clearly biting across the board.
Vistry
Housebuilders have been in the news this week with broadly disappointing tales of falling completion rates and uncertain outlooks despite mortgage rates being on the decline. That made for a refreshing change from Vistry – formerly Bovis - this morning who flagged their unique partnership model as being behind a decline in their full year reservation rate of just 5%. Financial performance for FY23 is now ahead of guidance and forward sales are up 12.4%, too. This extends a healthy outperformance which has been posted by the company over the last few months.
