Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Deliveroo management promise profitability soon
Deliveroo [LON:ROO] has published full year numbers this morning, noting a 14% uptick in revenues, a 30% improvement in gross profits and a 150bps improvement in margins. However despite this the company remains lossmaking, with EBITDA coming in at -£70.5m, although that’s significantly improved on a year ago and management believe that FY23 will see a reading of £20m-£50m, weighted into the second half despite the uncertain macroeconomic outlook.
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#2. DFS rising costs and price cuts weigh
Furniture retailer DFS [LON:DFS] posted interims for the 26 weeks to 26th December today. Revenues fell marginally but EPS was rattled, off by more than two thirds. That has resulted in dividend payments being pared back from 3.7p to just 1.5p. A combination of pricing strategy and cost increases have taken a toll here. The company may be growing market share, but the investor reaction will be worth watching.
#3. Savills: mixed outlook but company performing ahead of expectations
International estate agent Savills [LON:SVS] has published full year results to 31st December. Group revenues are up 7% but in a familiar story of rising costs, underlying profits fell some 18%. Investors are however still being rewarded with an ordinary dividend of 29p, up from the 28.35p paid a year ago, but without the 2022 special dividend. Despite challenging conditions, performance was ahead of management expectations. Uncertainty over interest rates may weigh in the year ahead, although there’s optimism that the reopening of China may prove supportive.
