The fresh food supplier Bakkavor saw its shares jump in early trade following the publication of its Q1 trading update. Group revenues were up 3.3% but there was a particularly strong performance in the US market. Management are convinced that the momentum created underlines both the guidance for the current year as well as the target of 6% margins in FY27, whilst a separate announcement also saw the terms of a takeover by Greencore finalised, with an implied valuation of 200p per share. The Bakkavor share price was up 3.5% at 196p in early trade.
The multi-faceted UK outsourcing specialists Serco announced it has been awarded more than £1bn worth of maritime services contracts by the Royal Navy this morning. This both replaces existing service provisions and expands into new capabilities, covering work for as long as 10 years. This extends the almost 30-year relationship Serco has had with the Royal Navy and is the latest in a string of global defence contract wins by the business. The Serco share price was up 6% shortly after the open.
Despite some stand out headlines in today’s interim earnings update from the software and solutions provider Sage, investors appeared to focus on management concerns over the uncertain outlook, despite the belief that organic revenue growth for the full year will be at least 9% and an expectation that margins will continue to improve as the business scales. Annualised recurring revenues were 10% higher whilst underlying operating profits added 16% and the company also announced the extension of the current share buyback by a further £200m. Despite that, the Sage share price was more than 4% lower by 8.30am.
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