Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Greggs [LON:GRG] has published a quarterly trading update this morning, showing that the good times continue to ‘roll’ for the baker. The company now has more than 2,000 stores operating under the brand, with total sales for the 13 weeks to 28th September up by an impressive 12.4%. Expectations for the full year remain unchanged.
Yesterday saw the release of a report which noted that spending on nights out was at a three-year high, so today’s full year numbers from Revolution Bars [LON:RBG] are timely. Indeed sales are up by 6.7% and forward Christmas bookings are 15% higher than they were a year ago, but profitability remains challenging. Adjusted pre-tax profits have slumped from £8m to £3m; take out the adjustments which include new bar opening costs and the figure shows a rather less flattering loss per share of 10.4p, almost double the 5.7p recorded a year ago.
Furniture retailer ScS [LON:SCS] has published full year results this morning, showing a modest uptick in sales whilst margins have been maintained. Profitability has ticked higher too, but it’s not all good news. The company has flagged that the first two months of the current trading year have been disappointing, with like for like new orders over the period falling short of expectations. Whether this overshadows the progress that has been made remains to be seen, but there’s no escaping the fact that political and economic uncertainty in the UK could hamper big ticket discretionary purchases like sofas in the months ahead.