Three things you need to know in the financial markets this morning from investment writer, Tony Cross
Bovis Homes
Bovis homes have published a trading statement this morning ahead of full year results at the end of next month. Profits are slightly ahead of market expectations and there has been a significant improvement in operating margin. Brexit uncertainty has been weighing on discretionary demand, but the company is strengthening ties with housing associations which provides some diversification and achieved prices are reported as being up on the year to date.
Pearson
Educational publisher Pearson has issued a trading statement for 2018, again ahead of full year results next month. The company has returned to profitability after a torrid few years and earnings are expected to be in the middle of the previously suggested range. Cost saving schemes are running better and being deployed quicker than had been expected. The company however notes that although a corner may have been turned, there’s still more work to be done.
The Works
Discount high street bookseller The Works has published interim results for the period ending October 28th today, along with a trading update for the Christmas period. The company appears to be in a position to embrace changing consumer habits, with new stores opening and revenues rising. Sales were up 15%, or 3.8% on a like for like basis whilst margins have improved by 0.3%, too. Activity is historically weighted in the second half of the trading year so a loss has been reported for the period, but with like for like sales in the 11 weeks to January 13th up 4.5%, the company has had the confidence to declare an interim dividend of 1.2p.
