Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
There’s a full year trading update out from global estate agents Savills [LON:SVS] this morning, showing an air of confidence despite some of the headwinds faced by the business. Both Hong Kong and the UK – key markets for the company – have faced challenges, but despite this the note reads that full year results will come in at the upper end of management expectations. The company is still aware that the full implications of Brexit are yet to be understood whilst other economic and political uncertainties also remain but at this point the outlook for 2020 remains unchanged.
William Hill [LON:WMH] also has a full year trading statement out this morning, noting that profits are set to be ahead of market expectations. US operations are set to have broken even, whilst big wins on the sports book in the UK have offset any weakness in gaming revenues. The company cites a move to ‘responsible gambling’ as being at the heart of its culture – in light of weekend press reports over a clampdown on bookies’ acceptance of credit cards, will these upbeat numbers and such a commitment be sufficient to maintain investor confidence?
City Pub Group
A year end trading update from The City Pub Group [LON:CPC] is also on the table today, showing something of a mixed bag. Expansion has seen a 31% uplift in revenues, but on a like for like basis the figure is a more modest 1.7%. The rugby world cup didn’t deliver the uplift the company had hoped for, despite England’s sound progress, whilst political uncertainty in the run up to the election also kept drinkers away. Tough comparatives from 2018 added to the headwinds, meaning earnings will be slightly below previous estimates. There’s a slew of new pub openings coming and the company notes that some of its most recent additions have been hugely successful, too, but might shareholders struggle to see the glass as being half full?