Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Solid profit uptick at AO
It might be the cusp of the long Easter weekend but there’s a veritable feast of corporate updates out this morning including a full year trading update from AO World LON:AO.. Revenues are estimated to come in around the £1.04bn level with adjusted profits set to be at least at the top of the previously guided range. With solid momentum behind the company, management believe that 10-20% revenue growth for the year ahead is achievable, with medium term profit guidance of 5% of adjusted PBT margin.
- Small Cap Stocks: musicMagpie, Emmerson, Arkle Resources
- Three Quick Facts: JD Sports, AO World, Shepherd Neame
- Companies Reporting: TUI, CVS Group, JD Sports
#2. Market share increase for JD
Keeping with retail and JD Sports LON:JD. also have a full year trading update out, covering the 53 weeks to 3rd February. The company has seen sales growth over the last year despite challenging market conditions, although with a raft of new stores having been opened, like-for-like growth was minimal.
Market share is however increasing and full year pre-tax profits are expected to be within the previously guided range of £915-£935. FY 25 numbers could be even more impressive with management suggesting a pre-tax profit of up to £980m.
#3. Arbuthnot’s pre-tax profits higher, impairments down but interest rate outlook weighs
Arbuthnot Banking LON:ARBB has full year numbers out today, with pre-tax profits up by 135%, average net margins of 5.7% up from 5.1% and a more than doubling in the EPS. Shareholders are set to see total dividends for the year upped by 10% and the liquidity surplus continues to grow. The net impairment loss has also been trimmed significantly, falling from £5.5m to £3.1m.
Management note that the fact we are now likely at the top of the interest rate cycle means falling borrowing costs will impact profitability in the short term, the fact this should bring with it a healthier economy ought to offer fresh opportunities for growth.
Three Quick Facts will be taking a break for the Easter holidays. We’ll be back on Wednesday April 10th.
