Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Barratt Developments sees average sales prices slow
Interim results are out from house builder Barratt Developments LON:BDEV today. Completions are down more than 10% from the comparative but this seems to be a consequence of normalisation post lockdowns. Pre-tax profits are up by 60 basis points whilst investors are being rewarded with a close on 50% increase in the dividend. Where the real interest perhaps lies, especially in light of yesterday’s note from Bellway, is that average selling prices again rose by less than 3% and whilst the company explains this away on the basis of product mix, does it suggest that underlying house price inflation may be running out of steam?
#2. Dunelm rewards investors with special dividend
Dunelm LON:DNLM also issued interims this morning, with sales advancing by an inflation busting 10%, whilst margins also improved by 80bps. There’s perhaps an understandable slip in digital sales as lockdown restrictions eased and investors will be rewarded with a 37p special dividend. Trading momentum has been sustained in the early part of the second half of the year and the board remains confident that recently upgraded full year guidance will still be met.
#3. GlaxoSmithKline fares well off pandemic; momentum could now slip
GlaxoSmithKline LON:GSK has published full year results this morning. It’s a long document as would be expected but the top line shows sales of £34billion, up 5% on a constant exchange rate basis. Pandemic related sales may have given the company a boost, but momentum here is understandably tipped to decline in the year ahead. A Capital Markets day to be held at the end of the month will likely prove insightful in terms of the future ambitions of the company and the imminent demerger of the consumer health division.
