Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Pets at Home
Pets at Home LON:PETS has published interim results this morning, showing a solid first half performance which is putting the business on track to deliver full year profits at the upper end of market forecasts. Growth has been seen across the board, but this has come with a degree of margin erosion. Investors may however be happy to look beyond that given the broader challenges faced by the retail sector – and the idea that the business isn’t itself facing such headwinds.
Cranswick
Food producer Cranswick {LON:CWK] is also publishing upbeat interims this morning, with news that revenues have risen by 7.1%, lifting adjusted pre-tax profits by 5.6%. Margins remain unchanged against the same period last year and the dividend is being increased by 5%. The company is making good progress in the Chinese market, where domestic pork prices have been rising sharply after the outbreak of swine flu. The business will however need to try and ensure it can continue to maintain momentum here once local supply normalises.
De La Rue
Secure printers De La Rue LON:DLAR had warned the market that the half year results wouldn’t be pretty and today’s statement confirms the fact. Revenues are down by 15%, adjusted operating profits have collapsed almost 90% and the dividend has been suspended in a bid to manage debt. A series of high level staff departures in recent months has paved the way for a wholesale review of business operations, but the uncertainty here may struggle to lend any support to an already beaten down share price.
