skip to Main Content

Free Newsletter: Actionable insight every morning for the self-directed investor. Find out more

Three things you need to know in the financial markets this morning from investment writer, Tony Cross.

Naked Wines

Naked Wines [LON:WINE] has published a full year trading update for the period to March 29th. The wine subscription model has unsurprisingly performed well through lockdown with around a 50% increase in active members – or angels as the company prefers to call them – whilst the growth across the Atlantic is also singled out. Sales there are up by 50% and now account for 45% of all revenues. It’s not all good news as investment in onboarding new customers has been higher than forecast but repeat customer contributions were also ahead of target. There’s lots to like about the model they use – it’s not a typical wine club subscription but instead puts the customer in control of what they get and when. Arguably it went into the COVID pandemic on a strong footing and is emerging on the other side looking even more robust.

AO World

A similar story from online retailer AO World [LON:AO], which has released a full year trading update to March 31st. Group revenues have jumped some 62% higher, with the German operation achieving profitability in Q3. The company attracted 2 million new customers during the period and sees the year’s performance as having been without parallel. Again, by all accounts the company went into the crisis on a strong footing with a solid customer proposition. The outcome here is arguably deserved and that move into profit for the German operation is testament to that.


Deliveroo

There’s a Q1 trading statement out from recently IPO’d Deliveroo [LON:ROO], which again shows a suitably robust performance off the back of the pandemic. Gross transaction value (GTV) is some 130% up from where it was in Q1 2020, with the UK slightly outperforming other markets. Looking ahead the company retains the optimistic view set out in its prospectus with a belief that GTV can grow 30-40% over the full year. As we noted with Just Eat’s numbers earlier in the week, as consumers face increasing competing demands on their cash and have the option to eat out in restaurants once again, it will be fascinating to see if there’s still room for growth in this industry.

Sign up for three quick facts and more with our Free Daily Digest newsletter, every weekday morning.

Become a better investor with SharePad Designed to give you the confidence to pick your own investments, Sharepad gives you access to a wealth of information on UK, US & European stocks. Find out more

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Tony Cross

Tony Cross

Tony Cross is a market commentator with over 15 years of experience, producing compelling, insightful copy for journalists and investors alike. Focusing on macroeconomics, UK blue chip equities and inter market analysis, Cross's commentary is well regarded for its clarity and ability to cut through the waffle. He has been quoted in publications as diverse as The Financial Times, The Times, The Guardian and The Sun. He has also been a regular guest on both Share Radio and TipTV.

Stocks in Focus

Here are some of the smaller companies we are following most closely. They all represent significant growth stories in our view. Our in-depth reports go into more detail on why we like them.

Comments


Back To Top