Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Can better supply chain management deliver for Aston Martin?
Q3 numbers are out today from Aston Martin Lagonda LON:AML with the headlines continuing to paint a downbeat picture as the company battles against supply chain challenges. One bright spot was a 220bps improvement in gross margins and management note that the company’s performance for the reporting period was in line with revised expectations. There’s optimism regarding production rates into Q4 and also a growing order book as new models pave the way for sustainable growth. Will this be enough to placate shareholders?
#2. Bumper Q3 sales raise questions over Next year-end performance
There’s a trading statement out from Next LON:NXT this morning covering the 13 weeks to 26th October. Material growth in full price sales has been reported with growth of 8.1% against the comparative although management note that this may have pulled forward sales from Q4. Given the performance over the peak Christmas season last year as well, there’s a muted signal being sent when it comes to performance over the last stretch.
#3. Vaccine sales down but GSK remains on track
Biopharma play GSK LON:GSK also has its Q3 numbers out today noting that sales have been driven by a strong performance from speciality medicines, offsetting declines in vaccine purchases. The core operating profit is 5% higher and operating margins are also improved. A 15p dividend has been declared for the quarter and management note that the company remains on track to meet full year expectations.
