Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Tesco double digit profit increase
Interim results from Tesco LON:TSCO show group sales up 8.9% and operating profits having risen by 14%. Those are going to be numbers that many consumers will find hard to stomach given the ongoing cost of living crisis – never mind the inevitable response from journalists and politicians – and the CEO’s statement that the company is committed to bringing down costs feels somewhat lacking. The sheer scale of the profit uptick here could be problematic.
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#2. Topps Tiles inflation hits sales but revenue growth intact
Q4 numbers from Topps Tiles LON:TPT revealed a third consecutive year of revenue growth for the business, with sales now £40m higher than pre-COVID levels. High inflation and a slowing housing market have been weighing on the most recent sales figures, but profitability remains on track and full year expectations are set to be met.
#3. Dalata Hotels: new properties in Edinburgh and Amsterdam
Dalata Hotels [LON:DAL] has issued a note this morning advising that it has secured a development site in Edinburgh and that it has completed a transaction to enter the hotel market in The Netherlands, too. The combined value of the two transactions is in the region of £40m, with a further £35m to be spent developing the Edinburgh site.
