Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Vistry’s full year performance set to beat guidance
Vistry Group LON:VTY has this morning published a full year trading update which is eye-catching amongst the sector owing to the very modest 5% reduction in completions that has been reported. That’s ahead of guidance and as a result, adjusted pre-tax profits are expected to be in line with FY22’s numbers.
Management are lauding the company’s unique partnership model as being the winning formula here and forward sales are up 12.4% on the position of a year ago.
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#2. Wood Group’s strategic pivot yielding results
There’s a trading update for FY23 out from Wood Group LON:WG. this morning as well, noting strong revenue growth of 9% and EBITDA now set to come in slight ahead of expectations. Management are heralding this as proof that their strategic growth journey which started a year ago is yielding dividends and there’s confidence that the momentum here can be sustained.
#3. Burberry: slowing luxury goods demand hammers sales forecasts
Burberry LON:BRBY served up a Q3 trading update, noting a £50m decline in retail revenues for the period to 30th December. The company is currently undergoing another repositioning but the decline in demand for luxury goods is weighing, with the pace of deceleration here slowing further in the run up to Christmas.
Notably only Asia Pacific (excl South Korea) saw growth on a territorial basis and whilst the Federal Reserve won’t be losing any sleep over the matter, sales in the Americas dropped 15% YoY. Full year operating profit is now set to come in between £410m and £460m, against the £552m-£668m range forecast in November.
