Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Currency headwinds exterminate revenue growth at Rentokil
Rentokil Initial LON:RTO has a Q1 trading update out this morning, showing a modest 0.9% uptick in revenues, although on a constant currency basis the number was a more flattering 4.9%. A further 8 bolt on acquisitions have been made during the period and integrations following the significant purchase of Terminix continue in a move that will allow for further shared use of resources.
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#2. Steady sales growth at Dunelm despite macroeconomic woes
There are Q3 numbers out from Dunelm LON:DNLM with the company continuing to deliver the goods. Revenues advanced 3% against the comparative and online sales keep progressing in volume. Full year gross margins are now expected to be ahead of previous guidance and increase by around 110bps.
Management do add a note of caution insofar as whilst the consumer outlook in the UK may be improving, it’s difficult to see when this will translate into better market conditions. That said, there appears to be little not to like in these numbers.
#3. UK & Ireland continue to shine for Deliveroo
And also with a quarterly update today we have Deliveroo LON:ROO with gross transaction value up 6% against the same period a year ago, whilst order numbers rose by 2%. Whilst the company is pushing overseas expansion, the UK & Ireland operations continue to perform better, despite the overhang of consumer uncertainty.
