Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Profit upgrade from Gleeson
Low-cost housebuilder Gleeson (LON:GLE) has this morning issued a trading update, noting that it completed the sale of 2,000 homes during FY’22 and that results are set to be significantly ahead of expectations. Strong selling prices offsetting rising wage and material costs, with the average sale being £167,300, although the company adds that a couple earning the national living wage can afford to buy a home on any of the company’s sites. There’s an expectation that strong first time buyer demand will be sustained in the medium term, with affordability becoming an increasingly important factor. The company has a landbank exceeding a potential 20,000 plots.
#2. Joules clarifies financing situation
Fashion retailer Joules (LON:JOUL) has issued a statement this morning in response to a note published in the Sunday Times, in a bid to placate investor fears. Whilst the company notes that it has appointed debt advisors from KPMG to assist, critically they have £11.3m worth of cash headroom on current arrangements which the company believes will be sufficient to see it through the seasonal borrowing peak. Good progress is reported as being made in improving long term profitability, too.
#3. Wizz Air: Q2 outlook flags operational limits
A Q1 trading update from low cost airline Wizz Air (LON:WIZZ) continues to see numbers flattered by the comparatives being impacted from COVID restrictions. It’s arguably more critical therefore to look at the forward projections with the company expecting to post a material operating profit in Q2 (July-September) as revenue and pricing momentum is expected to continue. The company does however add that it expects to reduce utilization a further 5% over the peak summer, but this will still give ASK (Available Seat Kilometres) growth of around 35% versus last summer.
