Three things you need to know in the financial markets this morning from investment writer, Tony Cross
British American Tobacco
Half year numbers are out from British American Tobacco this morning, showing that guidance for the full year remains unchanged. Revenue growth is expected to be in the upper half of the previously stated range, and it’s the same for operating profits, too.
Online fashion group boohoo has published a trading update this morning, showing a 39% increase in revenues for the last quarter when compared to the equivalent figure a year ago. Despite suggestions that this market is increasingly competitive, the company still managed to maintain a gross margin of 55%, down just 0.2%. The company’s multi-brand strategy is seen as being hugely beneficial, too, with sales at its ‘Nasty Gal’ label proving most notable, up by well over 150%.
De La Rue
Secure printers De La Rue have today announced they are leaving the end to end identity solutions market, with the sale of their International Identity Solutions division for £42m. This is in line with management’s plan to focus on the identity-related security features market, making the business less asset intensive and more technology-led. Perhaps of greatest interest is the fact the division being sold made a profit of £2.3m last year and some £38m worth of assets are being transferred across as part of the process. Will investors see that as too bold a call?