Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Bellway
Interim results are out from Bellway LON:BWY this morning, covering the six months to January 31st. Revenues advanced 11% although an increase in margins reigned in operating profits. There’s going to be something of an uptick there following the pent-up demand of the first lockdown, but looking ahead the company is eyeing average sale prices for the full year of £295,000 from its current robust order book. That pace may not be sustainable however as the number appears to have been influenced by a rush to complete more expensive properties before help to buy price caps kick in on April 1st. As a result of the robust trading environment and strong balance sheet, the interim dividend payment is being restored.
Pendragon
Motor group Pendragon LON:PDG has published full year results for the period to December 31st today. Revenues slumped by just over a third as a result of the lockdowns, but the company managed to find a pre-tax profit of £8.2m, up from the £16m loss seen a year earlier, thanks to a strong second half, cost cutting and also government support schemes. There’s some concern over the outlook, especially in the short term as economic support packages are withdrawn. The board also notes that there could be near term constraints on new vehicle supply. No dividend is proposed for the year.
Travis Perkins
Travis Perkins LON:TPK has updated the market this morning on the news that it intends to resume the process of demerging Wickes from the group. This isn’t a new idea, with plans put on hold to allow the company to focus on its COVID response, but is now proceeding and the prospectus is set to be approved later in the day. A jump in DIY has bolstered sales at the retail facing outlet, with Wickes recording revenues of £1.35bn and profits of £82m for the past year.
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