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Three Quick Facts: Next, Serco and Nightcap


Three things you need to know in the financial markets today from investment writer, Tony Cross.

#1. Next Q2 trading statement ups FY guidance

There’s a trading statement out from Next LON:NXT this morning, covering the second quarter. Full price sales are up 5% from last year which is ahead of expectations and translates to a £50m boost for revenues. Full year profit guidance has been increased by £10m as a result. The company notes that some very distinct post pandemic patterns have emerged with online growth coming to a halt whilst physical retail has something of a renaissance. There’s no expectation that the strong Q2 performance will be sustained either, with this having been bolstered by the hot weather and also the impact of inflation corroding consumer spending habits.

#2. Serco interims flag rising staff costs but profit guidance upped

Half year results are out from Serco LON:SRP this morning, showing that the company has successfully replaced revenues from the government test & trace scheme. Revenues are fractionally higher year on year whilst profits are up 6% and the interim dividend is being hiked 18%. That makes for a far better performance than was envisaged at the start of the year. Increased labour costs will take a toll on profitability in the second half but despite this the company is again increasing underlying profit forecasts for the full year.

#3. Nightcap: strong Q4 sees revenues hit £1m a week

There’s a trading update out from bar operator Nightcap LON:NGHT, noting that a strong Q4 meant the year finished on a strong footing, in line with management expectation. Revenues for the period were 73% higher, although a slew of new opening means that on a like for like basis this comes in at a rather more modest 29%. The company notes that with its strong buying power, it is well placed to mitigate inflationary pressures.

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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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