Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Inflation busting show from Finsbury
There’s a pre close trading update out from Finsbury Food LON:FIF. Group sales advanced an inflation-busting 16% to deliver record revenues, with further support emerging off the back of the recent acquisition of bakers Lees. Management see the well reported cost challenges as persisting for a while longer yet, although only make passing reference to how these have been managed in terms of operational improvements and supply chain initiatives. However consensus appears to be that these challenges will abate in the near term.
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#2. Majority of The Restaurant Group divisions performing well
The Restaurant Group LON:RTN has a trading update out covering the first 28 weeks of the financial year to 16th July. Performance is noted as being encouraging with growth being reported across all sectors other than leisure where minor contraction was noted. Estate rationalisation continues with 35 sites set to be closed by the end of the current financial year, whilst the performance of new Wagamama sites is seen as having been strong and the plan is to open a further 7-8 new stores a year under the brand.
#3. Severn Trent trading in line, environmental commitments high on agenda
A trading update from Severn Trent LON:SVT notes that financial performance was in line with expectations, but opens with a note about their environmental credentials, including news that the company received the highest possible rating from the Environment Agency for 2022. The company is also set to benefit from £50m worth of Outcome Delivery Incentives in what is seen as a sector leading performance.
