Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. AG Barr on course to meet full year expectations
AG Barr LON:BAG, makers of Irn Bru, have this morning released a trading update covering the full year to 29th January. A strong H2 sales performance means revenues are up 17% year on year and the company is on track to deliver against expectations for FY23. Despite high inflation and the planned introduction of a deposit return scheme in Scotland – two factors that have the potential to impact consumer behaviour – management believe the underlying brand momentum will allow revenue growth to continue further.
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#2. DX Group YoY revenues up 15%, cost pressures ease
Delivery specialists DX Group LON:DX. have issued a trading update for the 26 weeks to 31st December. Year on year revenues advanced by 15% and the company notes that distorting factors such as supply chain issues and labour market pressures are easing. There’s no reference here however to the scale of the upside realised – if any – off the back of Royal Mail strike action and whether this will bolster performance going forward. Separately, a new CEO has also been appointed.
#3. ITM Power half year update highlights challenges in scaling production
Another soul-searching update from ITM LON:ITM, this time covering the six months to 31st October and reflecting on the fact that despite the successful fundraise, the company underestimated the competencies required to move from an R&D firm to a volume producer. ITM remains well capitalised, although a large slug of revenues from the current year will now be deferred owing to delays and changes to the delivery model. Management believes the next 12 months will be pivotal in making the business – investor takeaways from today’s conference call could be telling.
