Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Robert Walters upgrades profits
Recruiter Robert Walters LON:RWA has published a Q4 trading update this morning, noting a strong performance in December and that profits are ahead of expectations. Fee income for the year is now being reported as up 21%, whilst 83% if revenues are now coming in from overseas. The note also heralds the strength of the Asia Pacific market despite many countries still being under some form of COVID lockdown and the company continues to grow its own headcount, too. Full year results will be released in early March.
#2. Shoe Zone now debt free; dividends to resume
Final results have come in from Shoe Zone LON:SHOE this morning, covering the 52 weeks to 2nd October. The company continues to navigate the market well – sales for the year are down fractionally but stores were only open for 36 weeks against 41 weeks in the comparative period. Last year’s £14m loss has been turned into a £9m profit, CBILS loans have been paid off and with the company now debt free, management have indicated that dividend payments can resume. The company also plans to continue its expansion into the digital sales channel, where revenues rose by more than 50% over the period.
#3. Shipping and staff costs take toll on profitability for Games Workshop
Games Workshop LON:GAW has published half year results this morning covering the six month trading period to 28th November. Pre-tax profits are down £3.4m but as the company notes, if you strip out rising shipping costs, forex movements and the fact they are paying staff more, net core profits are broadly in line with the previous year. COVID staff shortages rather than global supply chain issues seem to be the big challenge when it comes to getting stock to customers.
