Three things you need to know in the financial markets this morning from investment writer, Tony Cross
A trading update from Tesco this morning is providing little worth cheering. The company claims outperformance in a subdued UK market but with group-wide like for like sales up by a mere 0.2%, enthusiasm may be muted. High points included the performance of wholesale arm Booker with sales up 4.2% and UK online grocery shopping up 7%, but headline UK sales were down 0.4%, whilst Tesco Bank revenues slipped by 1.9%.
Full year results from wine retailer Majestic have laid bare the challenges faced by the company. They’re positioning themselves towards Naked Wines, the online artisan wine club, where revenues continue to grow although the cost of onboarding clients is high. The final dividend has been scrapped but an equivalent special dividend will be paid out if the company completes the sale of its bricks and mortar operation.
Full year results from Hornby may be painting a picture of full steam ahead with losses halved from a year ago, but sales are down and there’s still work to be done. The note suggests that the changes made in the last 18 months will start to bear fruit in the year ahead, with new licensing deals and an end to discounting seen as being instrumental in delivering this.