Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
Tesco [LON:TSCO] CEO Dave Lewis is to step down in the new year, according to a note published by the retail giant this morning. Citing that the company’s turn around plan is complete and that he believes the tenure of CEO should be finite, there are no details as to what Mr Lewis will do next, but he is to be succeeded by Ken Murphy, whose roles have included time as the former COO of Boots. The business may be using this as the line in the sand to say that the reinvigoration of the business is complete, but whether the market appreciates the change remains to be seen. The news coincides with interim year results for the firm, which saw turnover essentially flat but operating profits before exceptional items rising by around 25% against the same period a year earlier.
Topps Tiles [LON:TPT] has posted some solid interims of late, but a full year trading update shows that Q4 has been challenging, with the retailer being hit by waning consumer sentiment. The business is positive that profits for the full year will be in line with expectations, although one stand out that could spark market interest is a £2.3m repayment from HMRC. With profits expected to come in at around £15.8m, this is a significant boost for the balance sheet.
The start of a new month means updated passenger figures from airlines and Ryanair [LON:RYA] is on the blocks today. September saw the budget airline carry 8% more passengers than it did a year earlier, although the company was blighted by industrial action at the time. As always however, it’s the money they’re getting for each of the seats – rather than the number of passengers carried – that will dictate profitability.