Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
There’s a trading update out from Greggs [LON:GRG] this morning as the company continues to recover from the COVID lockdown. Sales for the 4 weeks to September 26th were 76% of those seen a year earlier, in line with the previously made assumptions. The company has reactivated elements of its new store opening plans but acknowledges that with demand set to remain subdued for the foreseeable future, it needs to reduce staffing costs. The aim is to avoid outright redundancies but this will be a tough call and an update on the financial implications here will be provided in November. The company adds that the outlook for trading remains uncertain.
Interim numbers from Synairgen [LON:SNG], the company which saw a bumper performance in the summer after its successful trails for a COVID therapy. Details beyond this however appear scant – they are in discussions with regulators over the approval route for the COVID therapy and are investing in the supply chain to ensure that should approval be granted, they can meet potential demand. The question is whether investors will have expected more from this note.
B&M European Value Retail
There’s a first half trading update out from discount retailer B&M [LON:BME] this morning, covering the period to September 26th. Group revenues have accelerated by more than 25%, driven by an increase in average spend per visit. The company is expanding its footprint, having opened 9 larger stores and closed 8 smaller ones during the period. Again detail beyond this is scant, but it’s difficult not to see the format as being a winner in an increasingly fraught physical retail market.
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