Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. DS Smith pre-tax profits up 75% despite economic headwinds
Full year numbers are in from DS Smith LON:SMDS this morning. Revenues are up 14%, pre tax profits have jumped by 75% and shareholders are being rewarded with a 20% increase in dividend payments. Despite widely reported economic headwinds the company is faring well and trading for the new FY to date is in line with expectations.
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#2. Whitbread RevPAR 40% higher than pre-COVID at Premier Inn
There’s a Q1 update out from Whitbread LON:WTB noting continued success of its Premier Inn brand. UK accommodation sales were up 18% against the comparative with strong demand regionally and nationally, both for leisure and business travel. RevPAR (revenue per available room) is up 16% YoY and 40% from pre-pandemic levels. Food & beverage sales are also advancing well, whilst the German operation continues to grow in line with expectations with some very strong RevPAR growth noted. Forward booked revenues in the UK are well ahead of last year and in Germany the business expects to reach break even this year.
#3. Manolete insolvency rates rise as COVID protections lapse
AIM listed insolvency practitioners Manolete LON:MANO have released full year results to 31st March. The first half of the year saw trade limited by the last company protections under COVID still being in force but with these having now expired, business has been ticking higher, with outperformance seen in H2. The number of insolvencies is expected to continue growing in FY24 which should point to further growth for the business moving forward.
