Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Sales slow at Barratt, FY25 outlook downbeat
Homebuilder Barratt Developments LON:BDEV issued full year numbers this morning headlining with a 19% decline in completions and a 22% drop in revenues. Adjusted profits dropped by almost 40% whilst operating margins were also hit. However, in terms of properties sold, this was at the upper end of forecasts and management note that they enter FY25 with a solid forward sales position although the broader market does remain subdued. Completions are expected to remain depressed in the year ahead and the note adds that for now the macroeconomic backdrop remains challenging.
#2. UK revenue jump bolsters Hilton Food Group
Hilton Food Group LON:HFG has published interim results this morning, noting that trade remains in line with expectations. The stand out division was the UK market where sharp increases in revenues have fed through and bolstered profitability. The question that springs to mind is whether sustaining this as inflationary pressures continue to ebb whilst the cost of living crisis shows no sign of abating is feasible.
#3. Chapel Down interims posted against tough comparatives, outlook upbeat
Chapel Down [AQS:CDGP] has published interim numbers for the period to 30th June, noting an 11% decline in revenues but a 23% uptick in direct to consumer sales, which now account for more than a third of income. Gross profits are down with management noting tough comparatives here, but a good 2023 harvest has also resulted in rising inventories, resulting in optimism over H2 performance.