Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Sainsbury profits at top end of forecasts
J Sainsbury [LON:SBRY] has published preliminary full year results for the year to 4th March. Whilst underlying profit has fallen 5%, this still comes in at the top end of the previously offered guidance and the dividend is being maintained at last year’s levels. Retail sales excluding fuel appear to have been lagging inflation with just a 2% rise being recorded and whilst the note underlines how the company has invested over half a billion pounds in keeping prices low for consumers, it’s inevitable that the focus will be on the scale of the profit recorded.
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#2. Naked Wines pivot to profit as structural changes kick in
Naked Wines [LON:WINE] has issued a pre-close statement for the full year to 3rd April, headlined as delivering on the pivot to profit. Revenues are in line with guidance but full year adjusted EBIT is expected to be at the top end or slightly above stated levels. The note adds that the company starts the new year as a significantly more profitable business than it was pre-pandemic and a commitment to ongoing stock reduction will generate more surplus cash as FY24 progresses.
#3. Barclays Q1 profits comfortably beat expectations
Barclays [LON:BARC] has published Q1 numbers this morning with a 27% increase in profits, a number which comes in ahead of expectations. Return on Tangible Equity was 15% – comfortably ahead of the 10% full year forecast – and the company is on track to deliver against full year forecasts, too. The deteriorating economic climate has bumped up impairment charges, although these remain towards the lower end of the predicted range.
