Fed (still) in focus, SSP serves up solid update, Acacia agrees to Barrick takeover

“The market’s obsession with when or if the US Federal Reserve will hit the button on rate cuts continues, with hopes of action at its meeting at the end of this month growing. This puts the FTSE 100 on course for a strong end to the week, up 0.6% to 7,537.82 early on,” says AJ Bell Investment Director Russ Mould.

SSP Group

“As we are preparing to jet off on our summer break, many of us will be counting the cost of shopping or dining as we endure the pain of being a captive audience.

“On the other side of the coin sits SSP Group which runs many of the food outlets in global airports as well as other transport hubs such as railway stations.

“Nourished by franchise or licence agreements to use many well-known brands including M&S Food, Starbucks, Burger King and Yo! Sushi alongside its own brands (Upper Crust and Caffe Ritazza), the company has an enviable track record of growth.

“Today’s third quarter update is very much business as usual with a solid revenue performance unveiled. The statement also demonstrates the benefits of the group’s geographic diversification with a strong showing in certain parts of the world making up for a weaker contribution elsewhere.

“SSP is not immune to what is happening in the airline industry; as it does rely on footfall through airports, the recent grounding of Boeing 737 planes on safety concerns had some impact.

“Generally though you can see why a proposition like SSP works well given the unpalatable alternatives facing you are to go hungry, pack a lunch before you go (alongside all your other holiday prep) or make a detour to pick something up on the way to catch the train or a flight.

“Given you typically have longer to hang around in an airport, it is not a huge surprise that this part of the business is performing more strongly than the one which serves rail passengers.”

Acacia Mining

“The protracted saga over Barrick Gold’s takeover of Acacia Mining seems to have come to an end today. As a majority shareholder Barrick was in a strong bargaining position so Acacia has done well to squeeze a bit more out of its suitor.

“Investors may be relieved too given the difficulties Acacia has encountered of late with the authorities in Tanzania, problems which it is hoped this transaction will go some way to solving.”

These articles are for information purposes only and are not a personal recommendation or advice.