Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. THG’s strong Q2 bolsters half-year EBITDA
There’s a pre-AGM trading statement out from THG LON:THG, noting that the company has had a strong second quarter, driving H1 EBITDA as a result. This number is expected to come in at between £44m and £47m, well up from the £32.3m posted a year ago. Full year guidance remains unchanged. Free cash flow performance for the 12 months to 30th June is ahead of expectations and the group remains on track to deliver free cash flow neutrality for the full year with adjusting items materially lower than the comparative.
- Berkeley Group shares unlikely to reward investors in Q1
- Three Quick Facts: Aviva & Direct Line, Berkeley Group, QUIZ
- Companies Reporting: Salesforce, Frasers, Berkeley
#2. Halfords revenue growth – but at expense of margin
Halfords LON:HFD has full year numbers out today with group revenues up 15.3% and 48% of income now service-related. There has been some margin erosion but with inventories falling too, there’s plenty of cause for cheer here. Total dividends for the year are proposed as being up 11% from FY22, with management convinced that they can continue to bolster profits in the medium term.
#3. Berkeley Group profits in line with expectations
Berkeley Group LON:BKG has announced results for the full year to 30th April today. Pre-tax profits are in line with expectations set at the start of the FY, the shareholder returns program has been maintained and the company has increased its net cash position. With net cash increased the company looks resilient against the ongoing headwinds of economic uncertainty and high borrowing costs, with management reiterating guidance to deliver pre-tax profits of £1.05bn across the next two years.
