Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. JD Sports pace of sales growth decelerating
JD Sports LON:JD. has published a pre-AGM update this morning. Following full year results to the end of January, the company had back in May reported that trading for the first three months of the year was running some 15% higher. Last month’s data showed something of a moderating situation and whilst this was in line with management expectations and driven by tough comparatives, the 8% YoY growth may raise concerns over the longer term outlook. Management also notes softening demand in North America – a pattern repeated elsewhere in the sector.
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#2. Taylor Wimpey to showcase zero carbon homes
A side note from Taylor Wimpey LON:TW. reflecting the relatively quiet earnings calendar we have today. The company will be presenting its zero carbon ready homes trial to analysts. This is the industry’s first research concept testing low carbon technologies through multi-specification prototype homes on a live development site. The launch is a major milestone following the recent publication of Taylor Wimpey’s Net Zero Transition Plan, which will ensure Taylor Wimpey reaches net zero five years ahead of the government’s target and the reception given by commentators will be interesting given the questions which have been asked in terms of whether ESG demands can be properly addressed in the current economic climate.
#3. PZ Cussons’ strong Q4 in Africa bolsters pre-tax profit expectations
There’s a full year trading statement out from PZ Cussons LON:PZC noting a third consecutive year of like for like revenue growth. Pre-tax profits for the year will be no lower than £70m, reflecting a particularly strong performance in Africa in Q4. Operating margins in Europe and the Americas have returned to the high teens and whilst a devaluation of the Naira will impact short term performance, over the longer term the accompany economic reforms should deliver some significant benefits.
