Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Persimmon margins at risk as completion rates slow
Full year results are out from the housebuilder Persimmon LON:PSN, with completions up 2% and average selling prices advancing by 4.6%. Margins have also been close to maintained, bolstering pre-tax profitability for the business. The outlook however is somewhat less inspiring and sits in line with the wider industry, with sales rates at just over half of the comparative. The note also flags the impact of cost inflation and reduced sales volumes as having the potential to erode margins by as much as 1300bps, but management are convinced that in the longer term, the outlook for the sector remains strong.
- UK Stock Market News: Domino’s Pizza, Persimmon Homes, Rotork
- Companies Reporting: Berkeley, Persimmon, Halma, L&G
- Companies Reporting: Greggs, Reckitt, Entain, ITV, Vistry
#2. More disappointing numbers from Aston Martin as costs mount
Another set of results from Aston Martin Lagonda LON:AML and more difficult reading for shareholders. Results were in line with expectations and revenue growth was up 26% but operating losses grew to £142m from £76m a year earlier. Management are heralding the growth, margin enhancement and positive free cash flow of 2022, along with a strong order book, but another year of heavy capex lies ahead.
- Where next for the Aston Martin share price after equity raise?
- Do Aston Martin Lagonda shares offer potential for recovery after its massive post-IPO slump?
#3. Steady growth for consumer goods company Reckitt Benckiser
Reckitt Benckiser LON:RKT also posted full year results for FY22 today. Revenues added 3.9% or 7.6% on a like-for-like basis and similar targets are being set for the year ahead. The company has grown 28% since pre-pandemic levels and enters 2023 with strong momentum. Shareholders are being rewarded with a 5% uplift in dividends and management are committed to further sustainable growth in the years ahead.
