Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Dunelm sales up but lagging inflation
Dunelm LON:DNLM has published preliminary results for the year to 1st July. Sales are 5.5% ahead and gross margins have taken a 110bps hit. The company remains profitable however and shareholders will see the dividend increased 5% to 42p plus a special divi of 40p. Early FY24 performance is positive although management add that consumer behavior remains unpredictable
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#2. Adnams footfall down but cost saving plans working well
Adnams [LON:ADB] has a half year trading statement out. Management note that rising costs have pushed losses out to £2.4m against £30m of sales, whilst lower footfall in key coastal areas is also weighing. Cashflow is consistent with expectations and a cost-saving exercise implemented earlier in the year is delivering ahead of plans.
#3. Dianomi contract amended
Dianomi LON:DNM has advised of a contract amendment, which will have a material impact on short term cashflows. A $1m overpayment to a publisher will be rolled forward in return for an enhanced revenue share agreement. In accounting terms this is going to be a punchy move – will the market buy into the longer term outcome?
