Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Bellway full year results show solid revenue improvement
House builder Bellway LON:BWY has issued preliminary numbers for the full year today, underlined by a strong land bank and resilient balance sheet. Revenues are up 13%, gross profit is almost 21% higher and operating margins have advanced 150 basis points. Perhaps more interesting is the performance in the first weeks of the new financial year however, where pent-up post-pandemic demand is abating and average sale prices are softening as the proportion of social housing transactions rises. Despite well-reported economic headwinds, the company is encouraged by high employment rates and positive changes to stamp duty.
#2. Ibstock full year outlook upgraded
Brick makers Ibstock LON:IBST have Q3 numbers out today. Their fortunes are inextricably linked to the housing market so perhaps no surprise that in light of Bellway’s note, this paints a suitably upbeat picture, too. Trading was ahead of expectations for the period thanks in a large part to effective cost control and management now expect the full year performance to be above previous expectations.
#3. Lookers: optimistic projections despite new car shortfalls continuing
Car dealers Lookers LON:LOOK also have a Q3 statement out today, which headlines with news that management now expect underlying profits for the full year to be improved, coming in at no less than £75m, although this is below the £90m posted for FY21. The cash and property portfolio has appreciated by more than 20% and a share buyback of up to £15m is now underway. Management note however that the availability of new vehicles continues to present challenges and in turn is limiting growth opportunities.
