Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Jet2 expectations for FY upped despite disruption
There’s a pre-AGM trading statement out from Jet2 LON:JET2 that critically notes based on current visibility and having absorbed £13m of unexpected costs from recent events, the company is on track to beat group profit expectations for the full year, before accounting for taxes and FX headwinds. Forward bookings are seen as encouraging with sold load factors ahead of the comparative despite a significant uptick in capacity.
- UK Stock Market News: Jet2, BAE, HSBC
- UK Stock Market News: Experian, Currys, Fiinu
- Currys shares pick up speed going into Christmas: is it time to buy?
#2. Currys revenues improving but still down YoY
Currys LON:CURY has issued a trading statement for the first 17 weeks of the year, again ahead of its AGM. Revenue trends across the first four months continue to improve with robust sales in domestic appliances and mobile phones offsetting weakness in other areas. However compared to the same point a year ago, like-for-like sales are down. Sustaining the growth here will be critical.
#3. Direct Line motor claim costs keep rising, dividend cancelled
Half year numbers from Direct Line LON:DLG continue to show the insurer being hit by motor claims costs coming in ahead of forecasts, and that’s despite a close on 10% increase in written premium fees against a 3% drop in policies in force. As a result, the net insurance margin tumbled from an 11% surplus to a 6% deficit and the dividend has been suspended. In addition to reflecting the motor claims losses, this is also designed to help preserve capital ratios.
