Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. AO World dials down expectations for its peak sales period
Interims have been published by AO World [LON:AO] this morning, covering the period to 30th September. Critically, sales have held up as physical stores have reopened, underlining the fact that the company has successfully – for now – converted customers for the long term. 500 new drivers have been recruited to alleviate challenges here, although issues remain higher up the supply chain and that has resulted in the company dialling down expectations for its peak sales period. There’s hope that the uncertainty will be short lived, but the market’s reaction to the downgrade could be telling.
#2. Pets at Home full year pre-tax profits expected at top end of expectations
Pets at Home [LON:PETS] has published interims for the 28 weeks to 7th October today, noting strong revenue growth over both a one and a two year horizon. The company continues to fare well off the back of the boom in pet ownership, although acknowledges that it is facing challenges when it comes to both labour and the supply chain. That said, full year pre-tax profits are expected to come in at the top end of current expectations, with the company eyeing the potential for further growth in response to an expanding market in the years ahead.
#3. Reach revenues are running ahead of expectations
Media house Reach [LON:RCH] has published a trading update covering the June-November period this morning. Revenues are running ahead of expectations, with digital setting the pace and print sales continuing to decline, something that is likely to be exaggerated given the current climate of rising newsprint and energy prices. The market for publishers undoubtedly remains challenging but there are certainly some indications that a degree of progress is being made.