Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Wetherspoon sales advance in Q3
There’s a Q3 trading update out from JD Wetherspoon LON:JDW this morning, covering the 13 weeks to 30th April. Like for like sales advanced 9.1% from pre-pandemic levels and 12.2% from a year ago. The estate has contracted by 18 properties over the year to date with this resulting in a cash inflow of £4.7m from the disposals. The company expects profits for the full year to be towards the upper end of expectations despite ongoing issues with input cost inflation.
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#2. ASOS profitability push yielding results
ASOS LON:ASC has published interim results for the six months to 28th February. Despite the ongoing challenges of the operating environment, the company expects to deliver against full year targets including a 20% reduction in inventory, a 100bps improvement in gross margins and £40-£60m adjusted earnings before tax and interest. The company’s focus on bolstering profitability is hitting headline sales but has the potential to be welcome news for investors.
#3. Compass: strong interims despite macroeconomic headwinds
Catering group Compass LON:CPG has reported numbers for the six months to 31st March this morning. These include a close on 25% increase in revenues and a 41% uptick in operating profits. Shareholders are set to be rewarded with a 60% improvement in the interim dividend payment. The company is focused on sustainable profitability rather than just outright growth and the impressive numbers come despite the pockets of macroeconomic weakness. Further returns to shareholders are anticipated, including a £750m share buy back.
