Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Barratt: mortgage headwinds to drag on FY sales
There’s am AGM trading update out from Barratt Developments LON:BDEV covering the period from 1st July to 8th October. The company continues to trade in line with previously set expectations, with private reservations running at 169/week against 188 for FY23. The company is noting headwinds in terms of the mortgage market and adds that the outlook remains uncertain. Total completions for the year are forecast to be between 13250 and 14250, well down from the 17206 posted last year.
- Companies Reporting: Bellway, LVMH, ASML, Whitbread, Netflix
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- Companies Reporting: Watches of Switzerland, Barratt Developments, Currys
#2. Whitbread revenues up 55% from pre-pandemic levels
Interims are out from Whitbread LON:WTB this morning noting a 17% uptick in revenues from the comparative, whilst adjusted profits advanced by an impressive 44%. UK hotel sales remain strong – revenues up by 55% from pre pandemic H1 FY20 – and accommodation supply is expected to remain constrained during the next five years, encouraging the company to look at building more properties. Shareholders are being rewarded with a 40% increase in the interim dividend.
#3. Just Eat EBITDA guidance up but sales slip
There’s a Q3 trading update out from Just Eat [LON:JET] showing for the most part a return to growth in Gross Transaction Values (GTV) in some markets, but order numbers are being pressured, reflecting the cost of living situation. EBITDA guidance has been upgraded by around 15% to EUR310m, GTV is expected to be around 4% lower on the year, putting this at the bottom of the previously stated range and management continue to explore the partial or full sale of GrubHub.
