Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Kingfisher’s French underperformance sees profits downgraded
Kingfisher LON:KGF has issued Q3 numbers to 31st October this morning. Like for like sales are almost 4% lower although management note resilience amongst customers in the UK & Ireland and Poland. French markets are however underperforming, with a warm start to the autumn being seen as weighing on insulation and heating sales.
The company is committed to growing market share further where it has physical stores and is also pushing ahead in an online only format in a number of European territories, but that weak performance in France is seen as reducing full year profit expectations by around 5%.
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- Nano One scales up its LFP production efforts at Candiac
#2. Rio Tinto settlement reached with US regulator
Rio Tinto LON:RIO has this morning advised the market it reached settlement with the SEC over a suit that has been running for six years. Without admitting liability the company will pay a $28m penalty. Often the closure of such cases can result in something of a relief rally for the underlying stock although given the quantum involved here that might be difficult to achieve.
#3. Sage sees double digit revenue growth for full year
Sage Group LON:SGE has issued full year results today, noting double digit revenue growth, an 18% uptick in underlying profits and a modest uptick in margins. Shareholders are set to be rewarded with an extra 5% in the full year dividend, whilst the company has separately announced a £500m share buyback scheme.
The move to a subscription model continues to grow, organic total revenue next year is expected to be in line with the FY23 print and operating margins are also scaling upward.
