Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Greggs
There’s a Q4 trading update out from Greggs [LON:GRG] this morning, covering the period to January 2nd 2021. Despite the huge uncertainty of last year, the company has put in an admirable performance with sales for the period of £293m against £344m in the comparable quarter of 2019. The company is also developing its online delivery partnership with Just Eat, which accounted for 5.5% of company managed shop sales in Q4. CCFF loans from the Bank of England have already been repaid and the company has some £37m in cash although the ongoing impact of COVID on the business mean that profitability isn’t likely to recover before 2022.
Topps Tiles
Topps Tiles [LON:TPT] have a Q1 update out today, covering the period to December 26th. Sales were up 19.9% against the previous year, a number that appears to have benefitted from a soft comparative and also likely pent-up demand from the summer. Stores remain operational through the current lockdown although on a limited basis and this is anticipated to hit both sales and margins. The company notes that it is now debt free, has £28.5m of cash on hand and remains committed to its target of owning 20% of the UK tile market by 2025.
Aggreko
Some good news from Aggreko [LON:AGK], the mobile power supply company, this morning. They have agreed revised terms with the Tokyo Olympics organisers that will see the company work on contracts valued at around $315m, up from the $200m originally slated. This is a major event for the company and one that needs to proceed as planned if the full year pre-tax profit target of £170m-£190m is to be met.
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