Three things you need to know in the financial markets this morning from investment writer, Tony Cross
More good news from Ocado this morning with the company having signed a deal to work with Australian retailer Coles using the proprietary Ocado Smart Platform. This won’t be a quick win however, with the project expected to take four years to come to fruition, although Ocado says that it will create significant long term value for the business. Investors are likely to be quick to cheer the news, not least because the bulk of the capex won’t be seen for some time yet.
FeverTree, the makers of high-end mixer drinks, have posted more upbeat results this morning. Revenues are 40% higher and earnings per share have risen by a similar amount. There has been a modest decline in gross profit margins, but with this figure remaining above 50%, shareholders will likely still have something worth raising a glass to.
Sticking with soft drinks, AG Barr, the company behind Irn Bru, published full year results today. The company has been forced to realign its business in the wake of the UK government sugar tax on soft drinks but notes that 99% of its current drinks portfolio is exempt for the levy. Revenues are on target up 5.6%, on top of 8% growth a year earlier, whilst pre-tax profits have also nudged a little higher. The 7% increase in dividends also puts the cash pay out to shareholders above consensus forecasts.