Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Ocado revenues advance but profits remain elusive
Ocado [LON:OCDO] has published full year results today for the 52 weeks to 28th November. Group revenues are up 7.2%, UK revenues are up by more than 40% from pre-pandemic levels and the company notes it has a significant cash balance of £1.5 billion. This is a weighty note with plenty of detail in it but ultimately, ongoing investment in the business means it remains loss making overall.
#2. Will sluggish Bellway sales price advance spook investors?
Bellway [LON:BWY] has published a trading update for the six months to 31st January. Reservations are up 5.8% on a year ago, average selling prices rose a rather modest 2.8% and margins are expected to improve by as much as a whole percentage point to 18% for the FY. The company believes that the fundamental outlook remains strong despite the prospect of rising interest rates, it remains on track to increase output by 10% this year and expects to carry this momentum forward, too.
#3. BP profits beat expectations, price volatility set to remain for now
Final results from BP [LON:BP.] are in and it’s perhaps no surprise with rising underlying commodity prices that profits have nudged analyst expectations, hitting $12.8bn against consensus forecasts of $12.5bn on a replacement cost basis. This comes against a poor performance for the previous financial year, but given the energy crisis facing UK consumers now, it still seems inevitable that the numbers will attract criticism. Expectations are that the market will normalise in the year ahead, but the note adds that with reduced surplus capacity, price volatility will remain.
