Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Mitchells & Butler sales up modestly from pre-pandemic levels, headwinds mount
There’s a Q4 trading update out from bar and restaurant group Mitchells & Butler LON:MAB this morning, showing food sales up from pre-pandemic levels, whilst bar sales continue to lag. Clearly that headline figure doesn’t take into account the rising costs which the industry is facing up to and in turn is squeezing margins. Management also acknowledge the pressures which will be faced by UK consumers in the coming months. Without this headwind the news may have had a better reception, but the company – and indeed the wider sector – still has some challenges to navigate.
#2. Hotel Chocolat’s Japan restructure not expected to hit performance
Hotel Chocolat LON:HOTC has this morning provided an update to the market regarding its Japanese joint venture. The unit had been going through a restructuring and outcomes here had the potential to hit full year numbers from the company, but today’s note concludes that given the situation there should be no material impact on profit performance or future cashflows.
#3. Avon Protection confirms new $42m US order
Avon Protection LON:AVON has this morning confirmed an order worth $42m with the US Army for a next-generation head protection system. This is seen by the company as being an important milestone in the wider roll out of the equipment to the US military and is said to cement Avon’s position as a global leader in the product.
