The hotel owner and operator PPHE issued interim results this morning which painted something of a mixed picture. Whilst room rates are increasing marginally despite the volatile economic backdrop, rising costs and the phasing of new rooms coming onto inventory has combined to impact performance. Full year EBITDA is now expected to be in line with the FY24 figure, around 10% lower than the number forecast in the Q1 update. As more properties come on stream this will further boost performance but for now, investors are taking a cautious approach. The PPHE share price was down 10% in early trade.
A year end trading update was issued by the IT services company Softcat this morning. A strong final quarter for the year has bolstered the outlook for the business with management now expecting to see full year gross profit growth in the high teens and strong cash conversion, which is forecast to come in at the upper end of the previously stated range. The Softcat share price was trading almost 4% higher shortly after the open.
The renewable energy provider Drax issued a note this morning advising the market that it was under an FCA investigation regarding certain historical statements in connection with its biomass sourcing, along with queries over the compliance of recent annual reports in terms of listing rules. This could well prove to be a drawn out process and the Drax share price was down more than 8% as a result.
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