Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Cranswick’s dip in margins seen as temporary, dividends set to rise
Full year numbers are out from Cranswick LON:CWK covering the 52 weeks to 25th March. The company notes strong revenue growth and margin recovery as it reacts to inflationary pressures. Sales were up 14.4% for the full year and EPS added 2.2%. Whilst margins are down year-on-year, a H2 improvement was seen to deliver a full year reading of 6.3%. A 5% dividend increase is being proposed, which would make for the 33rd consecutive year of growth here.
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#2. Passenger number recovery lifts SSP
Results for the six months to 31st March are out from SSP [LON:SSP] this morning. A continued recovery in passenger numbers means their franchised stores in airports and stations are getting busier as passenger numbers recover, with revenues up 64.1% against the comparative a year ago and standing slightly above pre-pandemic levels. The company notes that sales in the first six weeks of H2 have continued to strengthen thanks to a buoyant Easter period and has reported a pre-tax profit for the half year, too. Management note they believe that despite macroeconomic uncertainties, F&B demand in the travel sector will remain structurally resilient.
#3. Record half year sales at Topps Tiles, strong H2 profits eyed
Topps Tiles LON:TPT has half year numbers out for the period to 1st April. This is an interesting barometer of a business as consumers tend to have a choice as to whether they fit out a new bathroom or not, but despite economic headwinds the company has reported record half year sales and profits in line with expectations. Shareholders are set to be rewarded with a 20% uptick in interim dividends, and with improving sales momentum being continued into H2, profit for the period is expected to increase materially as energy prices fall helping boost gross margins.
