Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Associated British Foods reports strong sales across the board
There are Q3 numbers out from Associated British Foods LON:ABF this morning with gains being seen across the board although Sugar is the standout with revenues up more than 50% as underlying prices have been advancing. Primark continues to perform well with an uptick in revenue being fuelled by higher underlying prices and strong sales being reported in flagship city centre stores. Expectations are now for full year profits to be moderately ahead of last year, whilst adjusted EPS will benefit from a falling effective tax rate.
- UK Stock Market News: Mitie, THG, Associated British Foods
- Companies Reporting: easyJet, Burberry, Netflix
- Three Quick Facts: Associated British Foods, ASOS, Weir
#2. IOG drilling suspended to preserve cashflow
AIM listed IOG LON:IOG has provided an update on its Blythe H2 well, which is reporting a flow rate slightly above guidance and has achieved significant improvement in operational efficiency, However in order to preserve cash and in light of the current gas price, the company has elected to pause drilling activity for now in order to maximise near-term cashflow. Will that be a red flag for investors?
#3. Dewhurst sales advance but margins squeezed
Dewhurst Group LON:DWHT published interim results this morning, reporting an increase in sales but a decline in margins as the company attempts to absorb some input cost increases to remain competitive. The balance sheet remains strong, and shareholders are being rewarded with a 5% uptick in the interim dividend.
