Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Cranswick full year outlook bolstered despite macro concerns
Food producer Cranswick LON:CWK has interim results out today, noting strong revenue growth of 12.3% whilst margins have improved by 70 basis points. That amounts to an increase in group operating profits of 25% although despite the impressive numbers here plus news that full year numbers are likely to be at the top of expectations, the company remains cautious over the current geopolitical and macroeconomic climate.
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#2. AO profits upgraded
AO World LON:AO. has interims out, with revenues down 12% but a step change in profitability with the comparative loss being comfortably eradicated. Gross margins have also improved and now stand at 23.5%, up some 400 basis points, with tight cost control being seen. Full year profit guidance has been upgraded as a result and should now sit between £28m and £33m.
#3. Capita consultations over job losses to start
Capita LON:CPI has this morning announced that it will shortly begin consultations with employees as part of the cost saving process announced in the interim results. The move to reduce overheads means that some 900 roles in indirect support functions are at risk of redundancy. Exceptional costs of around £27m are expected to be incurred here and the cash impact will sit in Q1 ’24. A pre-close statement is due in mid-December.
