Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Crest Nicholson exceptional costs to weigh on FY profit
Crest Nicholson LON:CRST has issued a brief full year trading update, highlighting a series of one-off costs that will impact profits both in FY23 and FY24. As a result, full year profits are now expected to come in at £41m, some way below the £45-£50m cited in the November trading statement. On a more optimistic note, management add that customer interest is picking up, supported by improving lending conditions
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#2. PageGroup: slowing jobs market continues to drag
Recruiters PageGroup LON:PAGE have this morning posted Q4 numbers, showing what is described as a resilient performance. Gross profits are down 8.9% with the USA and UK both performing particularly badly. As a result the company now expects full year operating profits to be lower, but only slightly down from the previous guidance of £120-£125m.
The shortage of appropriate clients continues to be an issue, whilst employers are also being more cautious in terms of salaries offered and speed of hiring. Something of a perfect storm that is likely to persist until recession clouds are squarely blown out of the way.
#3. Cooks Coffee’s astute estate growth buoys sales in 2023
Aquis listed Cooks Coffee [AQS:COOK] published a trading update this morning covering the calendar year of 2023. Group sales were up 15.8% from its estate of 71 UK & Ireland stores. December was a record setting month for the business and it’s notable the strong contribution that has been made to revenues from the newly opened stores, suggesting management get what sells and where. Assuming the economic backdrop continues to improve, then the outlook here could well be upbeat.
