Three things you need to know in the financial markets this morning from investment writer, Tony Cross
Ted Baker
There’s a mixed set of results out from Ted Baker this morning, with revenues up but profits down. The company attributes this to tough comparatives given the lower levels of discounting in 2017, but again this serves to underline the broader challenges faced by the high street. With basic EPS down by almost a quarter and the dividend being trimmed too, the company will presumably be keen to put these numbers – and other events of 2018 – behind it.
Persimmon
Home builder Persimmon has published a statement this morning announcing a customer care plan. Complaints about poor build quality on new homes is nothing new, but buyers’ solicitors will now withhold 6% of the ‘build fabric costs’ – approx. £3,600 based on the average selling price – from Persimmon to ensure faults can be remedied. Whether that’s actually sufficient money is one point, but this is going to have a meaningful impact on Persimmon’s cashflow. The financial impact could easily overshadow the positive PR here.
GAME Digital
GAME Digital has published half year results this morning and given the pasting many in the video games sector have taken off the back of the release of online-only games such as Fortnite, the company has done well to harness the opportunities this offered. Revenues are off 4.7% but gross profits have declined a mere 1.2%.
