Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Irish housebuilder Cairn Homes shows continued strength
Cairn Homes LON:CRN has published a trading update for H1 ’23, noting significant growth and increased housing output. That’s a marked contrast to its UK peers with management flagging the buoyancy of the Irish mortgage market and moderating input cost inflation. An interim dividend of 3.1 cents per share is being declared and the EUR40m share buyback continues. Full year guidance is reaffirmed with the company expecting to complete on up to 1800 new home sales.
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#2. Sainsbury grocery sales outperform as inflation bites
There’s a trading statement out from J Sainsbury LON:SBRY this morning. Like for like sales for the 16 weeks to 24th June are up by 9.8%, with the strongest performance perhaps unsurprisingly being in groceries where rampant inflation continues to bite. The CEO notes however that inflationary pressures are starting to fall and the company remains committed to passing on discounts to consumers, but the falls in general merchandise and clothing sales arguably reflect the belt tightening that is being seen in the wider community.
#3. Strategic shift hits Distil with significant costs
Distil LON:DIS, the AIM listed owner of a slew of premium drinks brands, has announced its full year results to the 31st March. The company has made a series of strategic shifts in terms of distribution and that has had a marked impact on the headline numbers. Turnover fell 55%, gross profit dropped 58%, margins were eroded and losses grew more than six fold to £804k. The tactical shift was going to impact sales but management are convinced the fallout is now behind them. Will investors agree?
