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Three Quick Facts: Royal Mail, Premier Foods and MyHealthChecked

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Three things you need to know in the financial markets today from investment writer, Tony Cross.

#1. Royal Mail cost inflexibility sees Q1 loss

A Q1 trading update has been published by Royal Mail (LON:RMG) this morning, ahead of the company’s AGM. Revenues are down 11.5% off the back of lower online shopping volumes and the withdrawal of COVID testing kit distribution. That reflects an operating loss of £92m, something which has been impacted by an inflexible cost base and an inability to deliver further efficiency gains. If these issues can be addressed the company may be able to reach break-even for the full year although the spectre of industrial action also needs to be considered.

#2. Premier Foods sales, market share both increase

Premier Foods (LON:PFD) also has Q1 numbers out today, with group sales up 6% YoY and the company says it is firmly on track to deliver against full year expectations. Good progress has also been made in recovering industry-wide input cost inflation through a range of measures. The company also continues to build on its market share.

#3. MyHealthChecked: demand for COVID tests buoys H1 performance

AIM-listed MyHealthChecked (LON:MHC), the home testing company, has published its H1 trading update. The first half of the year has been stronger than expected, driven by significant growth in the sale of COVID-19 LFTs direct to consumers. Revenues for the period are expected to come in just under £10m, up from £3.3m for the comparative and a positive EBITDA position is also expected to be reported. The company has also launched a ‘DNA wellness testing portfolio’, which it expects to start distributing over Amazon later this month.

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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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