Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Homebuilder Bellway [LON:BWY] has published a trading update this morning. The company has seen a record volume of completions over the six months to January 31st and with that coming despite the economic and political uncertainty that prevailed before the general election, this is certainly something worth noting. Whilst volumes rose however there was a reported moderation in average selling prices down by 2.5% year on year. Taking this metric in mind – and assuming that there’s no change here – the company adds that the outlook for margins will be one that continues to normalise. Full year profits are expected to be in line with market expectations.
Insurers Admiral [LON:ADM] have provided updated guidance ahead of full year figures which are due for release in early March. Pre-tax profits for the full year are now expected to be 6%-13% up from where they were a year ago and the note adds that expectations are for a double-digit uplift in percentage terms to be proposed for the dividend.
Burberry [LON:BRBY] has published a short note regarding the impact the Coronavirus outbreak is having on its business. 24 of its 64 stores in China are currently closed, with the remainder seeing a significant decline in footfall. The situation is having a material impact on the luxury sector as a whole and given the evolving situation with travel restrictions, the company appears to be bracing for the position to worsen before any uptick is seen. Mitigating action is being taken and with a March year-end, any downside will be concentrated in the 4th quarter figures.
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