MARKET REPORT: Firms hit by Covid soar on new dividend plans

Shares in a host of companies laid low by Covid soared as they outlined plans to reinstate dividend payments.

Travel firm On The Beach, Upper Crust owner SSP and office landlord IWG will all resume handouts to shareholders in a major boost for investors.

On the Beach surged 17.9 per cent, or 21p, to 138.4p after it said it would pay a dividend next year – its first since December 2019 – as business was booming again following several years of disruption.

Revenue rose 18.7 per cent to a record £170.2million in 12 months to the end of the September while profit jumped to £12.9million from £2.2million.

The group enjoyed a strong summer while winter bookings increased by more than a third.

Shares up: Travel firm On The Beach, Upper Crust owner SSP and office landlord IWG will all resume handouts to shareholders in a major boost for investors

And with next year expected to be even better, On the Beach will start paying out dividends from September 2024.

Analysts at Numis, the investment bank, said: ‘Despite cost-of-living pressures still facing many, consumers continue to regard holidays as sacrosanct.’

SSP gained 6.4 per cent, or 13.6p, to 226.6p as it cashed in on the return of international travel and commuters working in the office.

Group profits more than tripled to £88million while revenues jumped 38 per cent to £3billion in the year to September 30. Sales were up by more than a fifth in the first eight weeks of its new financial year.

It plans to pay a final dividend to shareholders in February.

And at its investor event, office landlord IWG outlined its medium-term priorities.

This included resuming dividend payments, which chief executive Mark Dixon said was a ‘signal of how well the business is doing’. Its shares climbed by 2.4 per cent, or 3.6p, to 153.5p.

Meanwhile, the FTSE 100 fell 0.3 per cent, or 23.12 points, to 7489.84 while the FTSE 250 was up 0.7 per cent, or 126.28 points, to 18,487.53.

Equipment rental firm Ashtead said second-quarter profits were flat just two weeks after it lowered its annual forecasts. Shares dropped 3.8 per cent, or 185p, to 4735p.

Stock Watch – TinyBuild

US-based video games publisher TinyBuild may need fresh funds by the end of January, after it had just £4.5m at the end of last month following weak sales in October.

It expects its cash position to decline further after it agreed to a £2.8m settlement regarding a video games publisher and development studio it bought in 2021.

Revenues for this year will be below market forecasts.

Shares, which floated at 169p in 2021, plunged 49.4pc, or 3.02p, to 3.1p.

Downgrades from Barclays sent mining giant Anglo American 3.1 per cent, or 69.5p, lower to 2155p while Auction Technology, which allows bidders to buy items such as paintings, sofas and antiques through its online marketplaces, dropped 5 per cent, or 26p, to 495p.

Power firm Drax made gains after it said profits in its pumped storage and hydro business are expected to be way ahead of the £171million it made last year. Shares rose 2.5 per cent, or 11p, to 454.5p.

A positive first-half performance for Discoverie – up 16.4 per cent, or 99p, to 703p – saw the electronics components business increase its revenues and profits and resolve supply chain issues. 

Demand for video and audio cards helped Moonpig sales rise 6.5 per cent to £152.1million in the six months to October 31 as profit more than doubled to £18.9million. It rose 10.2 per cent, or 17.9p, to 158.6p.

Ladbrokes owner Entain fell 0.3 per cent, or 2p, to 794.8p after it reached a £615million agreement to resolve an investigation into potential bribery offences at its former Turkish business.

A High Court judge said that the gambling giant will pay £585million penalty as well as a further £10million to cover the probe and a £20million donation to charity.

Strong Christmas bookings at Marston’s were overshadowed as higher interest rates and lower property values took their toll.

The pub chain swung to a loss of £20.7million for the year to the end of September. Shares fell 3.9 per cent, or 1.2p, to 29.75p.

Engineering group Senior will supply parts for Boeing 787 aeroplanes to UAE company Strata as part of a new seven-year contract worth around £9.5million.

Senior’s shares slid by 0.1 per cent, or 0.2p, to 163.8p.

This post first appeared on Dailymail.co.uk