Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. AG Barr sees strong start but rising cost pressures
Soft drinks maker AG Barr LON:BAG has this morning published results for the 27 weeks to 1st August. The company has seen a strong start to the year with revenues and margins both posting material improvements, this being the result of market factors as well as internal innovation. The report notes however that margins are unlikely to be sustained into the second half of the year as rising cost pressures come to bear, although by year-end they still ought to be ahead of the comparative figure.
#2. Ferguson dividend up but outlook remains cautious
Plumbing and heating product distributor Ferguson LON:FERG has published results for the 12 months to July 31st today. Revenues are up 14% thanks to growing market share and gross margins have also improved by 60bps. Investors have been rewarded with a 15% uplift in the dividend payments but there’s a slight air of caution when it comes to the outlook. The new financial year has started well, although there will be some tough comparatives and margins are set to be squeezed. Improvements in operational efficiency may however offset this.
#3. Moonpig full year guidance upgraded
Gift company Moonpig LON:MOON has issued a trading statement ahead of its AGM today. The company notes trading for the year to date has been strong, with demand remaining elevated despite the relaxation of lockdown restrictions. As a result, the company is upgrading full year revenue guidance to £270m-£285m. There’s a realisation that customer behaviour could evolve further in the coming months. Insights here will be closely followed by investors.
