Three things you need to know in the financial markets this morning from investment writer, Tony Cross
Moss Bros
Gloomy news from Moss Bros this morning as the fashion retailer posts a half year update. The hot summer has taken a toll on business and although there are some signs of cheer – stock control problems earlier in the year have been overcome and online sales are expanding, now accounting for over 12% of the business – the full year profit is tipped to be materially below prior expectations of £2.3 million.
Diligent cost control does however mean there’s sufficient cash in the business to pay a dividend, which may offer shareholders some solace.
Tasty
Restaurant group Tasty – the people behind the Wildwood and dim t brands – have published first half numbers this morning and in line with much of the sector, competition and England’s run in the World Cup have been keeping diners away.
Revenues are down almost 6% from a year earlier and an impairment charge of £11m following a review of the company’s properties has also taken a toll. The fact net debt is falling is however one point worth applauding.
Smiths Group
Engineering group Smiths has full year results out this morning, with the headline shouting “return to growth” but it takes a bit of digging to find the right metric.
Revenues – excluding adverse foreign exchange movements are up 2%, but once you take the currency variation into account, it’s down 2%.
The expectation is that growth rates can be maintained into 2019, but with margins being squeezed, there’s going to be reliance on successful portfolio optimisation, too.
