Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. SSP revenue growth continues, outlook upbeat
SSP Group LON:SSPG the operator behind many branded shops and restaurants in transport hubs, has this morning issued a Q1 update, covering the period to 31st December. Sales are up 21% or 14% on a like for like basis, reflecting both the impact of continued reopening and growth in passenger numbers.
The uptick was seen across the board, with the US and UK markets performing especially well. Travel demand is expected to remain resilient despite political and macroeconomic uncertainty and full year forecasts remain unchanged.
- UK Stock Market News: Diageo, Vodafone, Crest Nicholson
- UK Stock Market News: Pets at Home, Rentokil, SThree
- Pets At Home outlook negative after results
#2. Pets At Home full year profit outlook lowered
Pets At Home LON:PETS has issued Q3 numbers this morning, covering the 12 weeks to 4th January. The period showed resilient growth against challenging comparatives, but retail business didn’t expand at the rate which had been hoped for. As a result, full year pre-tax profits are now tipped to be around £132m, although that’s only a £4m reduction on the level indicated in the interims.
#3. Diageo: Latin America and consumer uncertainty weigh on drinks giant
Diageo LON:DGE has issued its interim results today. Sales would have been broadly flat had it not been for foreign currency headwinds taking a toll. The Latin America & Caribbean region was also called out for a poor performance as a combination of factors weighed, whilst high inventory levels and volatile consumer confidence is also proving to be challenging.
An improvement in net sales and operating profit is forecast for H2, but the headlines – an 11% fall in operating profits and a 329bps reduction in margin – have the potential to leave investors with a bitter aftertaste.
