Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Online fashion retailer ASOS [LON:ASC] has published bumper results this morning, with revenues surging 19% although a slight erosion in margins meant the improvement in gross profit was limited to just 16%. The company notes that it now has warehouse capacity back to normal operational levels even whilst maintaining social distancing and whilst there’s caution over the near-term outlook as a result of the ongoing COVID disruption, the situation is backed by a commitment to further expansion and a strong cash position.
Barratt Developments [LON:BDEV] has published a pre-AGM trading update, covering the period of July 1st to October 11th. Sales activity was 20% higher than was seen at the same time last year, although this must reflect some of the pent-up demand following COVID shutdowns in the second calendar quarter. Looking ahead, the company plans to complete up to 15,000 properties in the current financial year, with a medium-term target of 20,000 being eyed.
Just Eat Takeaway.com
Just Eat Takeaway.com [LON:JET] has delivered a short Q3 trading update, showing a further acceleration in sales. Order growth accelerated to 46%, with new partnerships from the likes of Greggs and McDonalds being seen as helping drive the position. Canada posted growth of 98% against the same period last year, whilst Australia managed to see triple digit expansion. The company notes a ‘widening competition gap’ in key countries however – something that could scupper any plans for further acquisitions.
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