Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Deliveroo calling time on trade Down Under
Deliveroo LON:ROO has published a company update to the market this morning, noting that it has decided to withdraw from operations in Australia. Citing the local market as being too competitive with four global players already participating, Australia only accounted for 3% of Deliveroo’s global sales and is noted to have negatively impacted margins by 30 basis points. Whilst the local subsidiary is being placed into voluntary administration, the company adds that appropriate compensation will be paid to affected parties. No further financial assessment is offered.
#2. Premier Foods poised to benefit from macro headwinds
Premier Foods LON:PFD has half year results out today. Group revenues ad trading profits are both up by 6.2%, whilst margins have been maintained in line with last year. The company remains on track to meet full year expectations and notes that their broad range of affordable brands have always played a key role for families when times are tough. There’s an expectation that as people trade down from eating out this may provide further support for the business, although to what extent the soon-to-be released pigs-in-blanket flavour Bisto granules (seriously) will play here remains to be seen…
#3. British Land dividend up 12% at halfway mark
A half year report from British Land LON:BLND is also on offer today, highlighting a 13% increase in profits and a 12% uptick in dividends. Demand for high quality space remains strong, including for central London offices, although yields have been squeezed a little. The company goes into H2 with a strong pipeline, but management note they are mindful of mounting macroeconomic pressures. The balance sheet has however been strengthened by recent disposals.
