Wednesday, 29th May 2019 08:00 - by Rajan Dhall
Company shares are 10% higher this morning after the group focuses on airport expansion. Here are some of the key points from the report:
The company recently signed an agreement with Ryanair to fly 1mln more flights from Southend and it seems the project is going from strength to strength. Some of the losses are due to one of charges and fees and the increase in revenue will offset that over time. Another good move was the reduction in dividends. In my view, this shows commitment to the longer term game rather than shareholders seeking short term rewards. It may lose them some fans but sometimes it has to be done.
The daily chart below shows the share price has taken a battering in recent times. A move from 300p to nearly 100p is no joke for shareholders. I do now feel the company are trying to put themselves in the best place to recover. It is a risky move but one that is paying off so far and not only does the airport and energy expansion make sense to the delivery business it seems to be commercially viable too. A confirmation break above the trendline at around 150p would be another great sign but for now, 141p looks like a strong resistance.
The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.