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. Mooted ITM Power deal could deliver significant 10 year revenue stream
The hydrogen power specialist ITM LON:ITM has this morning announced that a subsidiary has signed a heads of terms agreement for the supply of a 150MW electrolyser platform with a European oil refinery. The deal is seen as significant given it covers a 10 year term so demonstrates the scale potential of the product. If the deal is finalised, it would be the largest commercial commitment to date for the company and establish a solid revenue stream.
- ITM Power deepens UK hydrogen push with Protium partnership
- Is ITM Power’s Rheinmetall partnership a game changer?
2. Hays revenues still decline but business reshaping in progress
Recruiter Hays LON:HAS published a Q1 trading update this morning. The sector has been through a rough ride and is having to remodel itself to be leaner – Hays is making some headway there with its Momentum strategy and on the basis of consultant net fees, productivity is continuing to grow. Total revenues however fell 3% on a LFL basis, whilst the cash position is as had been forecast.
3. Dalco disposal completes in welcome news for Hilton Food shareholders
Hilton Food Group LON:HFG announced after the close on Friday that it had completed the sale of its Dalco subsidiary. This was seen as being both a financial and operational drag on the business, so the share price responded accordingly when the news was made public back in the summer. The stock has been on a good run since, although the cash consideration associated with the sale – just £5.4m – is unlikely to spark much interest, at less than 1% of Hilton’s market cap.
In case you missed it
Gold has had its worst September since the 2013 crash, yet private investors bought more of it than at any point over the last five years. We kick off the week with the latest figures, which show 389kg of net buying last month, worth around £40mn, even as rising bond yields pulled the price down 6.7% in sterling. Are investors now treating gold as insurance against government deficits rather than a trade?
Roundhouse AI has opened a retail offer through Winterflood’s WRAP platform ahead of its move from Aquis to AIM, with dealings expected to start on Tuesday 13 October. We look at what the company means by building a “trust layer” for the AI agent economy.
In Asia, Meritz Financial has posted record first-half profits of ₩1.47tn, with return on equity of 26.8% and a further ₩500bn buyback on the way. Closer to home, tip sheet stock RentGuarantor has signed a two-year deal with King’s College London, opening the door to around 20,000 international students.
Look out for trading updates from Sanderson Design and AEP Plantations in the company diary today.
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Tony Cross
Tony Cross is a market commentator with over 25 years of experience, producing compelling, insightful copy for journalists and investors alike. Focusing on macroeconomics, UK blue chip equities and inter market analysis, Cross’s commentary is well regarded for its clarity and ability to cut through the waffle. He has been quoted in publications as diverse as The Financial Times, The Times, The Guardian and The Sun.
This article does not constitute investment advice. Please do your own research or consult a professional advisor.
