Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Bellway
Preliminary results for the full year to July 31st are out from Bellway LON:BWY this morning. Despite a 30% fall in revenues as a result of the COVID shut down, a respectable £320m operating profit was posted. The company’s net cash position has however been heavily eroded, almost wiping out the £200m balance it was sporting mid-2019, but the fact that a reduced 50p per share dividend is being proposed perhaps offers some indication of confidence regarding the outlook here. The company notes it started the new financial year on a strong footing with sales in August and September up by 30% from a year earlier and believes it can continue to deliver sustainable growth in the long term.
Reckitt Benckiser
Reckitt Benckiser [LON:RB] published Q3 numbers today, with the company noting continued growth in sales. Home and personal hygiene product sales are being driven by the COVID pandemic, although stockpiling earlier in the year is evidently slowing sales a little in the health division. The revenue outlook for the full year has been upgraded to low double digit growth, with other guidance unchanged.
Britvic
There’s a note out from Britvic LON:BVIC today, headlining with the fact it has signed a new 20 year franchise bottling agreement with PepsiCo for Great Britain. However there are two other key points in here, namely the acceleration of a move to using fully recycled plastic by the end of 2022, three years earlier than planned, plus a trading upgrade. The limited reopening of hospitality venues combined with continued strong at-home sales is set to push full year earnings slightly above current consensus forecasts.
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