Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
AO World [LON:AO] has published half year results this morning, against a backdrop of the company attempting to restructure its approach to business. Total revenues for the period are up 16%, although strip out the recently acquired AO Mobile division and the increase is a rather more modest 3.2%. The company has also launched its own financing division and the adjusted loss per share is showing signs of improvement, coming in at 1.01p vs 2.31p for the same period last year. The European division continues to struggle, although AO is now focusing on the German market in an attempt to achieve sustainability.
easyJet [LON:EZJ] has published full year numbers today, with profits coming in towards the top end of the previously forecast range – which was however some way below last year’s print. Capacity has grown by an ambitious 10%, although the upshot here has been a modest decline in the corresponding load factor and the per seat profit before tax figure has fallen from £6.07 to £4.07. Capacity growth looking ahead is set to be rather less ambitious and the company is also going net carbon zero, with offsetting schemes set to cost in the region of £25m next year. Proposals are that the dividend will be trimmed to account for the softer performance.
Half year numbers form Homeserve [LON:HSV] paint and impressive picture, with revenues up 13% and operating profits up 17%. The company’s performance in North America looks to be worth watching, with revenues up close on 40% year on year, whilst revenues from the UK Checkatrade site also continue to impress, up 34%. The company may be stopping short of a profit upgrade, but the business is certainly seen as performing at the upper end of expectations.