Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. AO World six month revenues up 60%
There’s a trading statement out from AO World [LON:AO] covering the six months to 30th September. The company found favour during the first COVID lockdown and growth has continued, albeit moderated by supply chain constrains. On a two-year basis, group revenues are up by more than 60% and adjusted EBITDA for the full year is expected to be between £35m and £50m.
#2. JD Wetherspoon COVID affected numbers
Preliminary results are out from JD Wetherspoon [LON:JDW] this morning, covering the year to 25th July. Obviously these numbers have been affected by COVID hospitality restrictions, with like-for-like sales coming in around 40% lower. In the first nine weeks of the new financial year, sales are 8.7% down on 2019 levels and the trend here appears to be improving. There doesn’t appear to be any comment on supply chain challenges hitting the company but the report notes they have had a “reasonable” number of applications for jobs posted, although recruitment in the South West has been an issue over the summer.
#3. Ocado debt deal to reduce borrowing costs
There’s a quick note out from Ocado [LON:OCDO] on a debt financial deal they have completed. This has driven down borrowing costs by 12.5bps and pushed maturity out by two years, which in an environment of forecast interest rate rises is to be applauded.