Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Tesco profits jump despite claims of price cuts
Tesco LON:TSCO has issued full year results this morning, with group sales up broadly in line with inflation at 7.4%, but there will doubtless be pushback against the fact statutory profits at the retail giant have more than doubled to £2,821m, although the adjusted figure shows a more reasonable 13% uptick. Shareholders are set to benefit from an 11% increase in dividend payments and the company adds that is has also delivered its largest ever increase in colleague pay. Retail profit expectations are broadly unchanged for FY24/25.
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#2. Solid headline numbers, FX headwinds in play for THG
THG LON:THG finally appeared to find some love from the City in a recent broker note so today’s full year numbers will be under close scrutiny to see if the support is warranted. Adjusted EBITDA came in at £120.4m, fractionally above the guidance published in January and management note the business has a strong balance sheet with £600m of cash and facilities to hand. The meaningful reduction in administrative costs will be welcomed, although there’s a lot in the report to work through and the weakening Yen is noted as impacting sales for THG nutrition.
#3. Speedy Hire full year numbers set to be at lower end of guidance
Speedy Hire LON:SDY, the UK’s leading tools and equipment hire services company, has published a year end trading update. The group notes a resilient performance in challenging conditions, with revenues down 5%. Ultimately numbers are now set to come in towards the lower end of board expectations, but recent contract wins are offering promise for FY25.
