Three things you need to know in the financial markets this morning from investment writer, Tony Cross
Thomas Cook has published a Q1 update this morning, showing revenues up by 1% with demand for holidays in Turkey and North Africa replacing some Spanish bookings. The company is however launching a strategic review of the airline it owns – many in this sector are struggling with overcapacity driving fares lower. For the winter period, bookings are up but average selling prices are down, again reflective of attempts to expand the airline operations. Full year expectations are unchanged, although what happens to the airline – which has a fleet of over 100 aircraft – remains to be seen.
Q3 numbers from pig and poultry producers Cranswick are out this morning, showing a 2% downturn in revenues for the period. This appears to be driven by lower wholesale prices, with the savings being passed through to purchasers. There’s a long term supply agreement with Wm Morrison having been agreed and the outlook for the year is seen as remaining unchanged. However, future margins are being flagged as being susceptible to the uncertain economic outlook and also the costs associated with commissioning new facilities.
Bellway is the latest housebuilder to update the market this week and they’re sticking very much to the song sheet. Revenues up 12%, average selling prices up 6.5% and a sharp reduction in debt. Government incentives and low interest rates continue to fuel demand, although the company does acknowledge a rising cancellation rate, up from 11% to 13% and also references the risk posed by Brexit as to how this may impact consumer confidence.