The results season has drawn prematurely to a halt, or at least it has been postponed, following on from a recommendation by the FCA. The government has been injecting liquidity into the economy with the aim of propping up businesses ahead of a return to normal(ish) commercial activity, but the economy is likely to keep on contracting until it is felt that the clinical situation has improved sufficiently for many business restrictions to be removed.
A look through the output on the IC website details several articles which dwell on the right time to re-enter the market. It is probable that the major UK indices will re-test and perhaps fall through their lows during the global financial crisis, but the duration of the current crisis is probably more critical.
There are few companies results on show, but no shortage of Covid-19 updates. Nilushi Karunaratne has updated on Biffa’s (BIFF) latest release to the market. Aggregate waste volume is employed as an alternative economic measure, and Biffa foresees a substantive fall in demand for its industrial and commercial collection services. Click here for Nilushi’s appraisal of the update.
It is doubtful if many company’s will attract the level of interest as Royal Dutch Shell (RDSB) in the current crisis given its primacy on the dividend front. With crude oil bobbing around the $20/bbl market, the energy giant will need to engage in some rapid housekeeping, but what does this mean for shareholders? Click here to get the good oil from Alex Hamer.
SSP (SSPG) is the latest company to prioritise capital preservation, though it has also just completed a successful £216m placing. The company derives the bulk of its sales through airports and train stations, so it has been hamstrung by recent events. Click here to read Alex Janiaud’s assessment of SSP’s prospects.
The skies are looking a little clearer nowadays as global air travel suffers in the wake of the virus. Alex Janiaud has also been looking at what the airlines can – and shouldn’t – expect from the government’s intervention package. Click here for the details.
