Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Persimmon sales slow significantly
Persimmon LON:PSN has issued a trading statement today noting a 33% decline in completions, reflecting the challenging trading environment. Expectations are for private sales in FY24 to improve, maintain the good momentum seen in the latter part of FY23. Market conditions will remain uncertain but the easing of mortgage rates is is expected to help.
- UK Stock Market News: Domino’s Pizza, Persimmon Homes, Rotork
- Companies Reporting: Berkeley, Persimmon, Halma, L&G
- UK Stock Market News: On The Beach, Unite Group, Smith & Nephew
#2. Sainsbury’s Christmas grocery sales shine, performance elsewhere lacking
Sainsbury LON:SBRY has a Q3 trading statement out covering the peak Christmas trading season. Grocery sales were up 9.3% with strong volumes offsetting inflation impacts. Elsewhere it wasn’t so good with general merchandise and clothing sales struggling, but total revenues were meaningfully higher.
#3. Smith & Nephew acquires cartilage specialists
Smith & Nephew LON:SN. has this morning notified the market that it has completed the acquisition of CartiHeal, a novel sports medicine technology for cartilage regeneration in the knee. This is an off the shelf treatment and whilst there are no forward looking statements in terms of revenue potential, the note adds that S&N paid $180m for the company with contingent payments of up to an additional $150m also due.
