Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Greggs special dividend as sales, profits surge
Another bumper set of numbers from Greggs LON:GRG – once superbly described as purveyors of farinaceous comestibles – show total sales up around 20%, pre-tax profits up by more than a quarter and shareholders being rewarded not only with a modest 5% dividend increase but also a 40p per share one off distribution.
The company has been working to broaden its brand appeal and is now ranked as the UK’s leading food-to-go brand by YouGov. The estate now stands at 2,473 shops and remains confident that the network can exceed 3,000 units over the longer term. Inflationary pressures are reducing and sales for the first 9 weeks of FY24 are up 8.2%.
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#2. US drags on Ashtead’s Q3 performance
Ashtead Group LON:AHT issued results for the nine months to 31st January this morning showing revenues up 14% but profits up by just 7%. Focusing on the last quarter the picture is even more telling with revenues up 9% and operating profits down 3%. That’s being attributed to the lower level of emergency response activity relating to natural disasters plus the longer than anticipated writers’ strike in Hollywood.
As a result, full year revenues are now expected to come in at the lower end of the previously stated guidance range. That said, the company is confident that the US will continue to drive healthy demand as a result of the number of mega projects currently underway.
#3. Steady progress for Intertek
Full year results from Intertek LON:ITRK are out today with revenues up 7.1% and adjusted operating profits up by more than 10% on a constant currency basis. Operating margins have edged higher too and the full year dividend is being increased by just over 5%. In terms of FY24 outlook, it’s all reactively anodyne with management expecting to see mid-single digit LFL at constant currency with further margin improvement and strong cash flow.
