Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Wickes year-on-year sales grow but uncertainty clouds outlook
Hardware store and builders merchants Wickes LON:WIX issued a Q3 trading update today. Total sales are up 2.6% year-on-year and some 19.2% up on a three year, pre-pandemic basis. Full-year forecasts for PBIT levels remain unchanged, but management do acknowledge the fact that looking further ahead, significant uncertainties are in play. However the business has identified growth levers and is maintaining rigorous control on costs.
#2. Intercontinental Hotels: leisure travel still very much in demand
Q3 numbers are also out from hoteliers Intercontinental Hotels LON:IHG, where RevPAR (revenue per room) is up 28% year-on-year and now sits slightly ahead of the 2019 figure. There’s a big geographic spread here with China continuing to lag, but with the company continuing to grow its portfolio there’s clearly confidence over the outlook. Inflationary pressures are in play but the company notes that year-on-year, leisure rates are up by an average of 15% whilst business rates have advanced 7%.
#3. Deliveroo: Gross Transaction Values up but full-year outlook trimmed
Rounding out a trifecta of third quarter earnings, Deliveroo LON:ROO has issued numbers today showing gross transaction values up 8% year-on-year. UK & Ireland sales have outperformed although the mounting economic headwinds have seen the company revise its guidance for the full year. GTV growth is now tipped to be between 4% and 8%, against the previously forecast range of 4% to 12%, whilst adjusted EBITDA margins are tipped to improve fractionally. These are now expected to come in at around -1.2% to -1.5%, 30 basis points better than had been previously called.
