Three things you need to know in the financial markets this morning from investment writer, Tony Cross
Half year results from cruise line operator Carnival have painted a disappointing picture, with rising costs eclipsing any upside from improved sales. Net income for the period has fallen from the $951 million last year to $787 million, although part of this can be explained away by the adaptation of a new revenue accounting structure. Rising oil prices do however remain a concern for the wider industry.
Carpetright, the flooring retailer which narrowly avoided being wiped out, has posted full year numbers. The company’s turn around plans continue to be deployed with store rationalisation and rent improvements providing some significant cost savings, although worryingly like for like sales are still declining. The picture is a little brighter for the company’s mainland Europe operations where like for like revenue growth of 3.4% has been seen. There may be encouraging signs here but the restructuring remains a work in progress.
There’s a trading update from Mears Group out ahead of interims due on August 13th. The company is focused on controlling its working capital and remains on track to meet expectations, which given the struggles others in the support services sector are facing should arguably provide reassurance for investors.