Three things you need to know in the financial markets this morning from investment writer, Tony Cross
Bellway
Housebuilder Bellway has this morning published full year results and there’s plenty for investors to cheer, here. Revenues and the proposed dividend have both exceeded consensus analyst expectations, whilst the company sold more than 10,000 homes for the first time in its history.
The group has an order book that’s about 7% stronger than it was a year ago too, so whilst Brexit still poses a threat to consumer confidence, the prospect for further growth remains clear.
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Meggitt
Engineering company Meggitt has published a third quarter update today which also includes an upgrade to revenue guidance in many divisions for the full year. The energy unit, which had been performing well to date hasn’t however had a great quarter, working against tough comparatives. Operating margins are also tipped to come in at the lower end of previous guidance, so whilst there’s something to cheer in today’s news, it still could have been better.
Merlin Entertainments
Merlin Entertainments has published a trading update this morning, covering the first 40 weeks of the year. Critically, the company had found growth constrained in the wake of terror attacks in London early last year but this appears to be abating, whilst the hot summer also appears to have provided some support. They have opened over 600 new hotel rooms and accommodation revenue is up an impressive 28%.
There is however a cautionary note over rising labour costs globally so margins could be squeezed when these are reported in the full year numbers.
