Yet more bad news from the high street with Debenhams producing a trading update this morning. The statement accompanying the numbers makes for bleak reading, noting that trading in May and June has been below plan despite weak comparatives (numbers from a year ago). The company has been forced to revise down its pre tax profit estimates for the full year to £35-£40m, against market expectations of around £50m. That will likely be interpreted as a profit warning and shares should expect to be squeezed again today.
Regional airline FlyBe has published full year results this morning and although many metrics are still pointing in the right direction, the company continues to post losses. Revenues are up 8.3%, revenue per seat is up more than 10% and the load factor is up 6%. However, the cost per seat is also up by almost 11% as rising maintenance charges and a weaker pound take a toll. This remains a tough business to be in, even for a niche carrier.
Hornby, the model train maker and every headline writer’s favourite stock has posted full year results this morning. It’s more a case of ‘off the rails’ than ‘full steam ahead’ however, with insufficient stock impacting recent sales. Gross margins are ticking higher, but with pre-tax losses up from £9.5 million to £10.1 million, the business still has work to do to get it back onto the right track.