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

#1. Ocado expects strong revenue growth for the full year

Ocado [LON:OCDO] has published a Q3 trading update, covering the period to 29th August. This straddled a fire at one of the company’s fulfilment centres in mid-July, so it’s very much a game of two halves. Over the first 6 weeks, performance was in line with expectations, but the fire saw revenues drop almost 20% in the following 7 weeks, with 300,000 orders worth about £35m unable to be taken. That had a total impact on revenues of just over 10%. The company is countering this by expanding capacity at other centres and enabling expansion to continue in a post-lockdown environment. Strong revenue growth is still expected for the full year.

#2. Trainline returns to profitability

Trainline [LON:TRN] has published a trading statement covering the six months to 31st August. In Q2, group sales had recovered to 71% of pre-pandemic levels with UK sales hitting 95% of the level seen two years earlier. This has driven a return to profitability with EBITDA expected to fall in the £13-£15m range. There’s still uncertainty as to what happens next and whether there will be a return to lockdowns in the winter but assuming that doesn’t happen, full year ticket sales are forecast to be in the £2.4-£2.8 billion range, whilst EBITDA will be between £35 and £40m.


#3. JD Sports Fashion expectations are for full year profits to be at least £750m

Numbers for the 26 weeks to 31st July are out from JD Sports Fashion [LON:JD] today. The popularity of Athleisure wear which surged during lockdown shows no sign of relenting, with the company noting revenues up by more than 50% despite footfall still remaining materially lower. Gross profit grew by 290 bps and expectations are for full year profits to be at least £750m. There’s no interim dividend being declared, but this could lead to a potentially larger payout for the full year, subject to any further trading restrictions.

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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.

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