Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Biggest ever Christmas for Premier Foods
Premier Foods LON:PFD has issued Q3 results this morning, noting its biggest ever Christmas and some significant market share gains. Revenues against the comparative are up by 14.4%, international sales are building well and management note they are on track to deliver against the previously upgraded full year figures. The note adds that with a pension deficit set to be plugged in the next three years, the longer term outlook for value creation is even better.
- Companies Reporting: Lloyds Banking Group, Sainsbury, Associated British Foods
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- FTSE 100 at the close: Associated British Foods, Beazley
#2. Crest Nicholson struggling to find much cheer
Housebuilder Crest Nicholson LON:CRST has full year numbers out today, with revenues down 26% reflecting wider sector woes given economic uncertainty and rising borrowing costs. That’s seen adjusted profits tumble significantly, dropping by close on 70%.
Legacy low margin sites are adding to the challenging backdrop and although management note the emergence of some positive macro trends as inflation and borrowing costs trend lower, they add it’s still too early to gauge any shift in consumer behaviour.
#3. Better margins at Primark set to bolster ABF
And rounding off with a 16 week trading update from Associated British Foods LON:ABF covering the period to 6th January. Group wide revenues are up 5.4% on a constant currency basis with Primark seeing a strong finish to the trading window, countering the slow start as a result of a mild autumn.
There’s potentially a note of caution in terms of UK sugar beet processing where output is expected to be significantly above last year’s levels with a consequent possible impact on price but again this plays off the advantage of diversification. Confidence in the fact that Primark has boosted operating margins is also noted as something that will provide valuable insulation should Red Sea shipping disruption continue.
