Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Higher volume of low margin sales hits Crest
Crest Nicholson LON:CRST published interim results this morning noting revenues down by less than 10% but the adjusted operating profit had collapsed by 72%, reflecting not only lower volumes but also a higher proportion of revenues coming from lower margin sites.
That has combined to deliver a half year statutory post-tax loss of £23m, reversing the £21m profit posted a year ago. Management note that macroeconomic conditions are improving and this is filtering through into the sales cycle, with expectations that full year profits will land between £22m and £29m.
#2. Virgin Money cost saving plans shelved amidst takeover
Virgin Money LON:VMUK has interim numbers out as well covering the six months to 31st March. The bank notes an 18% increase in statutory pre-tax profits and a 35% reduction in impairment losses, but is still posting a Return on Tangible Equity of below 10% and the revised outlook – including some higher than anticipated costs – means that this metric is expected to perform worse in H2 than in H1. The bank is still in the process of completing its sale to Nationwide.
#3. Fullers sees profits leap, sales improve
Pub operator Fullers [LON:FSAT] has its full year numbers out today with revenues up by around 6%, and pre-tax profits up by more than 60% after solid sales improvements were seen across the board. That momentum has continued into the early weeks of FY25 and management note that the share buy back scheme will continue. A final dividend of 6.5p per share is being proposed.
