Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. JD Wetherspoon update shows sales back to 2019 levels, costs rising
JD Wetherspoon LON:JDW has published an update this morning, showing what appears to be a diverging view compared with others in the industry. Sales are back at 2019 levels but costs are significantly higher. Notably, sales of draft beer are the lagging component, but the company also notes that sales in cities (excl London) have been stronger than those in more suburban locations or small towns. Preliminary results are due on 7th October.
#2. Strong support for regional leisure group, Loungers
Café/bar operator Loungers LON:LGRS has published its audited results for the year to 17th April which provides a useful alternate take on the leisure industry. Revenues here are up almost 50% from FY’20, the very end of which was hit by lockdown. The company flags changing consumer behaviour and the increase in working from home as seeing more people supporting local communities and high streets. Loungers takes a different approach to business compared to JDW, so this success at a local level arguably says something about changing consumer habits post-pandemic. And with more than 200 properties now open, delivering at scale seems eminently feasible, too.
#3. . Half year results from eco-ingredients manufacturer, Itaconix
Itaconix LON:ITX makes plant-based specialty polymers which are used as essential ingredients in everyday consumer products. They have reported mid-year results this morning, with revenues up 124% and notes it is now in a strong position to meet market expectations for the full year. Critically however, gross margins were lower than comparable periods owing to product mix and higher input costs, but this situation is expected to improve in H2.
