Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
1. SSP’s H1 results show sales at 64% of pre-COVID levels
SSP (LON:SSP), the F&B operator at travel locations, announced its results for the first half of the financial year this morning. Revenues are up more than 200% year on year, although this is flattered by post-pandemic reopening, with a better comparator being that trade now sits at 64% of pre-COVID levels. More than 80% of the company’s estate is now open and the company notes that in the first six weeks of H2, trade hit 83% of 2019 levels, with the uptick in leisure travel being a key driver here. Expectations are that trade will sit around this level for the remainder of the second half.
2. Homeserve shows 15% uptick in profits as company moves closer to sale
Full year results from Homeserve (LON:HSV) are out today, with revenue growth of 10% and operating profit advancing 15%. Typically we’d be looking here for news of how the business thinks economic headwinds may affect performance, but with a bid for the business on the table and with the full support of management, that’s arguably a moot point. If anything, today’s numbers may help elevate the share price even close to the 1200p bid level.
3. Hilton Food Group: Trading update highlights inflation pressures looming
There’s a trading update out from Hilton Food Group (LON:HFG) ahead of today’s AGM. Trading is in line with board expectations and sales are ahead of last year, primarily reflecting increases in raw material costs as well as growth initiatives. The note does however caution that the outlook remains challenging and inflationary pressures could erode volumes although the prospect of further growth through acquisition remains very much on the table.
