Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. ScS Group is enjoying a post-pandemic boom
Furniture and flooring retailer ScS Group [LON:SCS] has published full year results today for the 53 weeks to 31st July. Like many, the company is enjoying something of a post-pandemic boom, with sales, revenues and margins all heading higher despite the 17 weeks of store closures during the reporting period, up from 9 weeks in the comparative. Trading since the start of the FY has also remained upbeat, with sales some 12% ahead from 2019’s figures over the last nine weeks. The company has also repaid its furlough grants, something we are keen to applaud.
#2. Greggs full year outcome to be ahead of previous expectations
Greggs [LON:GRG] has issued a Q3 trading update ahead of its capital markets day. On a two year basis, like for like sales are up 3.5% despite staffing and supply chain issues and the company notes that it expects on a net basis to open 100 new stores this year. The company does however acknowledge that the impact of inflation will be felt on input costs for the business and although there’s hedging in place for the short term, this will soon run out. That said, excepting any unknowns, the company is bullish that the full year outcome will be ahead of previous expectations. Estimates put revenues this year at £1.2 billion, with the potential for this to double by 2026.
#3. Hotel Chocolat revenues advance 21%
Preliminary results are out from Hotel Chocolat Group [LON:HOTC] this morning, covering the year to end of June. Revenues advanced 21% despite store operations being disrupted by pandemic closures with the company noting that some 70% of sales came through digital and partner channels. Sales growth has continued to accelerate as stores have reopened and group trading for the first quarter of the current FY is noted as being in line with management expectations.