Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Fuller, Smith & Turner trading update reveals jitters over short term sales
There’s a trading update out from pub and hotels business Fuller, Smith & Turner LON:FSTA this morning, covering the 25 weeks to 17th September. Sales were 3% ahead of pre-pandemic levels but the company is well aware of the rising costs it faces itself, especially with regard to energy prices, and the fact that its consumers are in the same position, too. The world cup and first restriction-free Christmas in three years are giving some cause for cheer, but management certainly aren’t hiding from the fact that the short term may present further obstacles.
#2. Frasers Group’s Mike Ashley to stand down as director
It has been confirmed that Mike Ashley won’t be standing for re-election as a Director at the upcoming Frasers Group LON:FRAS AGM which is due to take place next month. Acknowledging that the company has gone from strength to strength since the new CEO – Ashley’s future son-in-law – was appointed, Mike adds that he remains fully committed to the business, will provide support when asked and has offered a further £100m of unsecured funding on the same terms as were announced on a loan facility back in December.
#3. TUI pre-close trading statement shows bookings close to pre-pandemic levels
Tour operator TUI [LON:TUI] has published a Q4 pre-close trading statement, noting that summer bookings are set to close in line with expectations, some 91% of 2019 levels. Flight disruption costs remain elevated, but continue to moderate and the company notes a particularly strong performance in the UK market with regard to forward bookings. A significantly positive EBIT will be reported for the full year and management note there has been a shift towards higher value and longer duration holidays, although the question is how such a trend in ‘revenge travel’ will be sustained as consumer budgets are inevitably squeezed.
