Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Taylor Wimpey
Another solid set of numbers from the house building sector with Taylor Wimpey [LON:TW] publishing its full year results this morning. Revenues are up 6.4% although margin erosion has seen profits dip a little lower. The company is however confident that build cost price inflation will continue to ease and although volumes for the year ahead will decline, this is being done as a deliberate play to better capture value, helping margins return to levels seen a year ago.
William Hill
Full year results from William Hill [LON:WMH] are out today, and the impact of the £2 stake limit on betting terminals in the UK is laid bare. Adjusted operating profits fell 37% although this still delivered a number ahead of management expectations. Overseas expansion continues apace with US revenues up by 38%, although some 75% of income is still generated in the domestic market. The company is on track to meet expectations for the coming year, but investors will have to wear a one third reduction in dividends.
Diageo
Diageo LON:DGE has published a trading update looking specifically at the impact on the COVID19 outbreak as the situation continues to unfold. Although this is an evolving situation, the company expects to see operating profits take a £140m – £200m hit for the fiscal year. Critically however the update is centred around sales in the Greater China and wider APAC regions. News in recent days suggests the situation is still far from understood on a global basis.
