Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Finsbury Food revenues advance but inflation eats into margins
Finsbury Food LON:FIF have published preliminary results today, with group revenues up 16% although margins did fall by 2.4% as the company continues to battle rising inflation. Operating profits have however added almost 11%, with these metrics being in line with market expectations despite macroeconomic headwinds. The question is arguably whether shareholders will now push back against the planned sale of the company.
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#2. ASOS: mixed weather and reduced inventories weigh
ASOS LON:ASC has a trading statement out. Sales continue to decline as stock balances are brought down, although adjusted H2 EBIT did advance by more than 100%. There’s a lot of timing detail in the note with weather and the stock reduction schedule perhaps not having had quite the optimal outcome. The question is whether investors can look beyond this.
#3. AG Barr interims show full year targets on track
Interims from Irn Bru makers AG Barr LON:BAG show a strong first half performance with sales up 33% helped by acquisitions and pre-tax profits advancing more than 12%. Shareholders are being rewarded with a 6% dividend increase and with the outlook being a focus on rebuilding margins, this note seems to be making the right sort of noises. Full year profits are set to be in line with the recently upgraded expectations.
