Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Britvic Q3 update – on course to meet full year expectations
There’s a Q3 trading update out from Britvic LON:BVIC which management say puts the company on course for a full year result in line with expectations. Revenues are up 11.2% for the period and 15.7% year to date and a £75m share buyback scheme is now underway. Whilst the note acknowledges the uncertain macro situation right now and challenge of rising inflationary pressures, it adds that soft drinks are typically a resilient category.
#2. Mitchells & Butler: challenging trading environment noted
Bar and restaurant operator Mitchells & Butler LON:MAB has also served up Q3 numbers today. Sales growth measured against 2019 comparatives and adjusted to remove any VAT benefit has shown steady progress over the year, but still sits down some 1.5% over the 42 week reporting period – and that’s before accounting for inflation, although also does encompass site closures. Management add that the trading environment remains tough, with inflation squeezing not only its margins but also the consumer appetite for discretionary spending.
#3. Frasers Group: record breaking year despite sector headwinds
Unaudited full year results from Frasers Group LON:FRAS are out, highlighting robust trading and strong strategic progress. It has been a record breaking year for the group, with adjusted pre-tax profits of £345m with all divisions delivering solid growth with the exception of rest of world, where a modest 1.6% decline was seen. The company continues to plot a course of growth by acquisition but despite this has still returned £193m to shareholders via a share buyback scheme.
