Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Kingfisher: DIY energy saving drives sales
Kingfisher LON:KGF has a Q3 trading update out today with sales up by 1.7% on a constant currency basis. Sales are noted as being significantly ahead of pre-pandemic levels, thanks to sustained gains in market share and this momentum has been carried through into Q4. Strong demand for energy efficiency is said to be bolstering DIY sales. Full year profits are forecast to be in the £730m-£760m range.
#2. Jet2: bumper summer performance, rising costs to hit margins
Tour operator Jet2 LON:JET2 has published a half year report, with the first post-pandemic summer producing a significantly impressive uptick in performance. Revenues jumped from £430m to £3.6 billion and a post-tax profit of £356m has bene delivered. Shareholders are rewarded with a 3p interim dividend. The company notes that it is on track to exceed average market expectations for the full year, but notes that margins may come under pressure given rising fuel and labour costs.
#3. Hornby: strong order book, but uncertainty over near-term outlook
Hornby LON:HRN issued an interim statement today, with group revenues up 3% from the comparative period citing a difficult period of trading. The company hopes that the supply chain issues which impacted performance for the second half last year have now been overcome and the order book is higher than it was a year ago, but add that it’s very difficult to predict how the Christmas period will map out.
