Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
There’s a pre close trading update out from Bellway [LON:BWY] this morning, showing that the company continues to ride the housing market boom. Revenues are up 8%, average selling prices have added 2.5% and full year figures are expected to be in line with expectations. However, there’s a cautionary note in here which we’ve seen from peers of late, too. Margins are steadily ‘normalising’ and although they remain above 20%, the downward trajectory here could be cause for concern.
Keeping with the property sector, Savills [LON:SVS] has published half year numbers this morning. Group revenues are up 16% although profits have fallen. Part of this can be explained away by a change in accounting policies, but elsewhere the business cites political uncertainty in two of its big markets – the UK and Hong Kong – as dragging on sentiment. Performance is however far better in other markets including the US and a solid second half is forecast. Full year expectations should be met.
Half year numbers from Aviva [LON:AVVIY] are out this morning. As is common with the sector, this is another weighty tomb but looking at the highlights, the new Chief Executive is quick to note that there’s scope to improve the company’s performance. Operating profits have nudged up ever so slightly, but the business faces macroeconomic challenges including ongoing low bond yields globally. The company is looking to trim costs and has a series of strategic reviews planned – there’s more to come here, but will investors be ready to buy into the optimistic outlook?
As the corporate earnings season winds down, “three quick facts” is off on its summer holidays. We’ll be back on August 27th.