Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Losses slashed at The Hut Group
The Hut Group [LON:THG] has published full year results this morning, with group revenues up by more than a third although gross margins declined by 50 bps. Net cash has also tumbled, declining from £282m to just £44m, underlining the operating loss of £137m although this is a significant improvement on the 2020 picture. Infrastructure investment ought to put the company on a strong footing in terms of competitive advantages however. The market’s reaction to these numbers will be interesting to watch.
#2. Boom in lettings offsets slowing sales market for Foxtons
A Q1 trading update is out from Foxtons [LON:FOXT] this morning, with revenue to March 31st being recorded as 8% up against the previous year as a result of strong growth in the lettings market. Sales also continues to gain market share, but that came against the tough comparatives of last year where the corresponding period was initially planned to be the last before the stamp duty window closed.
#3. Ibstock full year expectations upgraded thanks to robust margins
Ibstock [LON:IBST], the brick manufacturer, has published a trading update ahead of its AGM. The company notes a strong start to the year with Q1 performance ahead of expectations as a result of stronger sales and robust margins. The full year is now expected to come in modestly above previous forecasts and a £30n share buyback has been launched. The company notes that energy prices remain a key concern, but forward buying means that 75% of the H2 requirement is already covered.