skip to Main Content
Get your free newsletter: Actionable insight each morning for self-directed investors. 

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

ScS

Furniture retailer ScS [LON:SCS] has this morning announced it will need to delay the release of interims as the company assesses the impact of the latest COVID19 advice from the government. A trading update for the first half is however supplied, showing a modest uptick in both revenues and profits. Order intake was down however, but looking at the first seven weeks of the current trading year, this pattern had been reversed, presumably with shopper confidence bolstered by political clarity off the back of last year’s election. The COVID-19 risk remains difficult to judge, but rough times seem set to lie ahead – this is a business that remains dominated by physical rather than online sales.

Dixons Carphone

More gloom from the retail sector, with Dixons Carphone [LON:DC] announcing the closure of all its 531 stand alone Carphone Warehouse properties. This is seen as a critical part in the successful turn around of the business unit, which will make a £90m loss this year. With customers increasingly wanting to shop online, the physical presence will be maintained through store-in-store arrangements across the Currys PCWorld network, but job losses will be inevitable.

Compass Group

Compass Group [LON:CPG] have published a trading statement this morning, reflecting their outlook in light of COVID19. Government attempts to contain the spread have impacted expectations and revenues for the first half are now tipped to be down around 25% leaving operating profits for the period £125m-£225m lower than forecast. Interims are due in just under two months’ time but with shares having already lost 40% of their value over the last four weeks, will this news be able to exert any fresh downside pressure?

Sign up for three quick facts and more with our Free Daily Digest newsletter, every weekday morning.

Become a better investor with SharePad Designed to give you the confidence to pick your own investments, Sharepad gives you access to a wealth of information on UK, US & European stocks. Find out more

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.

Stocks in Focus

Here are some of the smaller companies we are following most closely. They all represent significant growth stories in our view. Our in-depth reports go into more detail on why we like them.

Comments


Get your free daily newsletter: 

Thanks to our Partners

Our partners are established, regulated businesses and we are grateful for their support.

Pepperstone
FP Markets
IG
Spreadex
Trade Nation
WisdomTree
ActivTrades
Back To Top