Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Sales growth slows at B&M – is consumer confidence returning?
Discount retailer B&M LON:BME has published interim results this morning with the numbers showing continued revenue growth, but the pace is noticeably slowing year-on year. That may be a signal that underlying economic conditions are starting to improve, although investors may be cheered by the fact that volumes are driving the uptick, margins are broadly stable and adjusted EBITDA is up, albeit by only 2%. Full year guidance has been reaffirmed.
#2. Profits advance at WH Smith with US travel hubs leading
WH Smith LON:SMWH published full year results this morning with the company’s UK High Street operations holding a steady profit despite a modest fall in income, whilst growth continues to be seen in the travel division. Overall, group pre-tax profits rose by 17%, and the outlook is upbeat with growth in the US continuing apace as bids for new stores in play whilst a number of new venues are being rolled out too in airports. A final dividend of 22.6p per share has been declared.
#3. Premier’s profits grow as consumers switch up from unbranded foods
Half year results are in from Premier Foods LON:PFD this morning with a 4.6% uptick in revenues, and trading profits are ahead by 5.5%. A combination of low-margin exits and changing consumer habits has seen non-branded revenue fall which again offers some hope that the cost of living pressures may be easing as inflation falls – a theme which the CEO picks up on. Full year expectations remain intact.
