Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Sluggish property market hits Persimmon – yet prices still rise
Full year results from housebuilder Persimmon LON:PSN are released today, reflecting the struggling state of the residential property market. Completions are down by a third but average selling prices are still edging higher, although not in any way that helps protect margins, down from 27% to 14%.
Pre-tax profits have been halved although the dividend is being maintained. In a sign that the market is improving the forward sales position is up by just under 5% as pent up demand begins to work through, although management note that the outlook remains uncertain.
- Companies Reporting: Ocado, Persimmon, Experian
- Domino’s Pizza sees short trades increasing rapidly
- Three Quick Facts: Persimmon, Marks & Spencer, JD Wetherspoon
#2. Domino’s sales advance and new mid term targets set
Domino’s Pizza Group LON:DOM also has full year numbers out today, with group revenues up 11% and earnings per share advancing by 5%. Management have upgraded medium term targets, with system sales – so including franchise operations – set to add 30% over the next 5 years.
Food cost deflation is also being eyed which should further help improve performance and the company is set to launch some new value-based products including a £4 lunch deal, allowing better use of assets at different times of the day. EBITDA growth for the year is set to be in the mid to high single percent range.
#3. BATM full year results show very modest financial improvement
BATM Advanced Communications LON:BVC has full year numbers out today showing modest revenue and profit growth, although gross margins have slipped back fractionally. The company is in a phase of pivoting as it implements a revised strategy, is exploring MA opportunities and notes that it has a significant backlog of cybersecurity orders. This does feel as if it may however be lacking the wow factor to inspire investors.
