Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Redrow: headwinds persist, company set to merge with Barratt
Housebuilder Redrow LON:RDW has issued a half year trading update, noting a resilient performance and improving conditions. Revenues are down by a quarter, whilst pre-tax profits have been more than halved. Full year guidance remains unchanged from the numbers stated at the AGM update in November and the company’s management has also agreed to an all share acquisition by Barratt.
- Three Quick Facts: BT, Sainsbury, Trainline
- Companies Reporting: Sainsbury, BT, Marks and Spencer
- Three Quick Facts: Barratt, Hilton Food Group, Chapel Down
#2. Barratt guidance tightened as reservation demand ticks higher
Keeping with residential property and Barratt Developments LON:BDEV has issued a six month update this morning noting a solid performance, although revenues are down by a third, profits by two thirds and margins have been hammered, too. That said, the company notes a strong start to the calendar year in terms of reservation demand and as a result expects to see completions of between 13,500 and 14,000 in FY24, narrowing previous guidance.
#3. Sainsbury’s strategic update outlines significant cost savings, shareholder returns
Sainsbury LON:SBRY has issued a strategic update this morning, promising enhanced returns for shareholders. This appears to be driven by cost saving measures – more than £1bn worth over three years – along with some significant capex, whilst the company will switch to a progressive dividend policy and launch a £200m share buyback. The business is also looking to lean into its food offering, scaling back in general merchandise as a result.
