Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. De La Rue outlook remains in line with management expectations
Secure printers De La Rue [LON:DLAR] have published half year results this morning, showing that trading so far has been positive. Turnaround and cost reduction plans continue to deliver results and expectations are that banknote printing facilities will be running at 100% utilisation in the second half of the year. The company is having to contend with rising costs and labour shortages as a result of COVID disruption, but notes that the outlook remains in line with management expectations.
#2. United Utilities bad debt is down and real term household bills falling
There’s a half year report out from United Utilities [LON:UU] this morning. The sector as a whole operates in a rather atypical manner, with securities often being seen as more bond-like in their performance given the intense regulatory oversight. Picking through this however, bad debt is down and household bills are also falling in real terms, something the company is understandably keen to promote. Details of hedging policies are also laid out – it really doesn’t seem as if there’s much to worry about here.
#3. Britvic expects 2022 to show further progress
Soft drinks maker Britvic [LON:BVIC] has issued full year results to 30th September today. Revenues are up 6.6%, post-tax profits up 9.1% and interestingly the company is continuing to grow its at home sales at the same time as hospitality operations reopen. Whilst operational headwinds in the supply chain and consequent effects on inflation are noted, there’s confidence by management that these can be mitigated, with 2022 seeing further progress in terms of revenue, profit and margins.