Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. PPHE margins squeezed by energy prices but sales momentum sustained
Hotelier PPHE [LON:PPHE] has issued a H1 trading update this morning, noting that the previously posted strong sales momentum is being maintained, with revenue for the six months expected to hit £177m against £155m for the corresponding pre-COVID period. The note cautions that FY23 will see margins hit by high energy prices, although this is expected to abate into FY24 . Full year revenues are now expected to be at least £400m, meaningfully above current analyst expectations of £352-£370m.
#2. Macro factors constrain Moonpig revenue growth
Moonpig LON:MOON has full year numbers out today with 5.2% revenue growth and a 680bps increase in gross margin being reported. Management note that the current macroeconomic climate is limiting growth although the business continues to expand and an easing of these constraints is expected to come through in H2.
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#3. Serco full year guidance upgraded
Serco LON:SRP has increased its guidance for the full year following a strong H1. Underlying trading profits are expected to increase by 8% to at least £140m, with full year revenues tipped to grow by 4%, despite the overhanging comparatives including COVID-related contracts.
