Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Mitchells and Butler full year results show trading now back at pre-COVID level
PubCo Mitchells and Butler LON:MAB has today issued full year results for the 52 weeks to 24th September. Revenues have more than doubled, whilst operating profits are around 50% higher. Management note that if you strip out the impact of utilities, profits are broadly back to pre-COVID19 levels and that for the first ten weeks of the new trading year, sales are up more than 9% from FY19 levels. That’s still below inflation for the equivalent period – but not too far off – although the broader economic environment is still recognised as remaining challenging.
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#2. Naked Wine half year update highlights impact of strategic pivot
Naked Wine LON:WINE has a half year update out today, covering the period to late September. That’s before the company announced its plans to pivot on its strategy but appears to show early signs of dialling back investment in customer recruitment and instead focus on the more profitable retention activity. The current program of selling down inventory will be cash generative for the business, although the full year outlook sees revenues falling by 4% to 9%.
#3. Games Workshop bumper payout for staff and shareholders
Games Workshop LON:GAW has its half year trading update out, noting that performance remains in line with expectations. Core revenues are set to be around 10% up YoY, although licensing revenues have been squeezed. Reflecting the solid performance, employees stand to receive a £1,500 per person payout, whilst shareholders benefit from an inflation-busting 65% uptick in the dividend.
