Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
There’s an absence of festive cheer with numbers from Ted Baker [LON:TED] this morning. The company’s performance over the last 17 weeks has been below expectations, leading the company to reduce its profit forecast to a minimum of £5m for the full year. The dividend is suspended, whilst the company is also undertaking a review of both assets and costs. Both the CEO and Executive Chairman have resigned – investors are likely to baulk at the news and it does little to restore confidence in the wider retail sector as the peak shopping days approach.
Photo-Me International [LON:PHTM], the company behind self-serve photo booths, laundry services and now fresh fruit juice dispensers, has published an interim trading statement this morning. Revenues for the six months to October 31 are up 3.3%, lifting adjusted pre-tax profits by 6.7% and the adjusted EPS by 9.1%. The dividend is being maintained and whilst economic uncertainty continues to weigh on the company’s UK business, management believe performance for the remainder of the current financial year will be in line management expectations.
McColl’s Retail Group
There’s a full year update from the convenience store operators McColl’s [LON:MCLS] out today. Like for like sales are flat, following a series of store divestments and full year earnings are expected to be slightly below expectations. The company continues to work at innovating its proposition, including running a trial with Uber Eats. Net debt has been reduced a shade, too, but whether that’s sufficient to reassure investors when underlying economic confidence is taking a toll on overall performance remains to be seen.