Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Ocado
Full year results are out from Ocado LON:OCDO this morning and with revenues up 10.3%, the company notes this makes it the fastest growing grocer in the UK. Pre-tax losses have however ticked significantly higher, although the company is convinced that the double-digit rate of sales growth can be maintained. A potential significant challenge will be the switch over from Waitrose to Marks & Spencer as a sourcing partner later in the year, but the growing cash pile may be sufficient to maintain investor confidence.
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TUI
There’s a Q1 update out from tour operators TUI [LON:TUI] this morning, with the company highlighting how forward booking trends for the year have started well. The note doesn’t however address the current Coronavirus outbreak and any consequences that may have on future demand for travel, as with the period in question only covering to the end of the calendar year, this predates the wider outbreak. Investors may however be left looking with a degree of caution that this hasn’t been addressed head on.
AA
There’s a pre-close trading statement from the AA [LON:AA] out today. The company is upbeat that the numbers will be in line with market expectations, as EBITDA continues to grow and cash flow generation remains upbeat. The note adds that in-house insurance underwriting remains ‘strongly profitable’ – there certainly don’t seem to be any red flags emerging here.
