Three key news stories unfolding as the UK stock market opens. Check out our companies reporting diary for upcoming results from FTSE 350 and selected international stocks.
1. CMA clears Unite’s acquisition of Empiric
A note out this morning from student property operator Empiric LON:ESP has confirmed that the Competition and Markets Authority has now cleared the proposed acquisition by Unite Group LON:UTG. There are some dividend details in the statement but initial inspection suggests those who accept and hold the Unite shares won’t be disadvantaged.
- Empiric Student Property reports drop in occupancy levels
- UK Stock Market News: Empiric Student Property, M&C Saatchi, Ryanair
2. Entain flags impact of budget
Gambling group Entain LON:ENT published a statement after the close last night, expressing its disappointment in the budget with regard to increases in gambling duties. Seeing the increase as disproportionate, it believes the impact on the economy will be negative.
Additional costs to the business will be c. £200m p.a. with cost mitigation from reduced marketing on the table, although this will in turn hit forward EBITDA. As with other moves like this, the risk is it simply pushes gamblers to unprotected offshore providers.
3. Rank set to suffer from budget and wage tax hikes, modest mitigation from Bingo duties
A variation on a theme from Rank Group LON:RNK who last night issued their own budget response. Changes it betting duties will see operating profits fall by around £40m, with a £6m mitigation from the abolition of bingo taxes. On top of this, minimum wage increases will cost the company a further £5.5m. Management note that last year, they paid £188m in tax, leaving a post-tax profit of £45m.
This article does not constitute investment advice. Do your own research or consult a professional advisor.
