Three things you need to know in the financial markets this morning from investment writer, Tony Cross
Associated British Foods
Interim results from Associated British Foods have been released this morning, showing a solid performance for the business. Headline revenues are up 1% and profits down 1%, but investors may well be applauding the 3% dividend hike more. Primark has been the stand out where higher margins (i.e. more expensive clothes) have seen profits at the retail division jump 25%. Numbers from the company’s sugar division do however risk leaving a sour taste as low price and poor harvests saw profits decimated.
Keeping with a good performance in fashion, Boohoo.com has published full year results this morning, showing revenues up 48%, gross profits up 53% and margin improvement of almost 2%. On the basis that the company will now start to recognise benefits from its new distribution facility in the North West, the potential is for the outlook to remain strong for the business, so long as the combination of pricing and new lines can be maintained.
A Q1 production report from Antofagasta seems to hold few surprises with results very much in line with expectations for its mainstay copper production. A sharp increase in gold output however may provide some additional cheer, although guidance for the full year is currently unchanged.