Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Severn Trent group turnover up 11% at half way point
Severn Trent LON:SVT has published interim results today. As we have said before these water utilities behave more like bonds than shares and the dividend is to be paid in line with the latest regulatory mandate. Group turnover is up almost 11% against the comparable. Despite the macroeconomic headwinds, the company has maintained bad debt provisions of just £8.5m, perhaps reflective of the extension of the affordability scheme which will now offer assistance to 315,000 customers with paying bills.
#2. Cranswick revenues jump but margins squeezed
Food producer Cranswick LON:CWK has interims out today for the 26 weeks to 24th September. Revenues are up by 12.4% from the comparative period although margins are down 88bps, reflected in a 1.7% fall in group operating profits and EPS down by 4.7%. The outlook for the full year remains unchanged.
#3. Upgraded guidance from electrical goods provider AO
Some good news from AO World LON:AO., with interims showing full year sales on track and profits expected to come in at the top end of guidance. FY24 outlooks also put profitability above the current consensus. The company continues to see strong demand from existing and new customers alike, retains its high customer satisfaction scores and now has an 18% market share in the UK. Closure of the German operation has now completed and the £15m provision that had been set aside here now appears unneeded.