Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Currys UK market performing well off summer football success
There’s a trading update out from electrical retailer Currys LON:CURY noting a positive start to the year. Over the first 17 weeks, UK & Ireland revenues have added 5%, with management noting reasons as varied as early adoption of AI tech to England’s performance in the Euros as having bolstered sales.
Mobile also performed well with subscriber numbers up by 34%. The Nordic market remains subdued but the note does add that costs in the region are being kept in check and margin performance is strong.
#2. ASOS forms JV to buy Topshop brand, EBITDA forecasts upbeat
There’s a trading update out from ASOS LON:ASC with the company noting that adjusted EBITDA is now forecast to land at the top end of consensus estimates although sales will be slightly below guidance. Management have also announced that they will be entering into a JV, forming a vehicle to acquire the Topshop and Topman brands. The deal will impact EBITDA in the short term but is expected to be value accretive in the longer term.
#3. Partnership focus buoys Vistry
Interim results from Vistry LON:VTY are out with completions up 9% from a year ago, revenues up by 11% and operating profit 10% higher. The success here is down to the company’s focus on partnership models, working with local authorities and other rental intermediaries, in addition to private buyer sales.
The company believes it is uniquely positioned to work with the government on meeting new housing targets and that the outlook remains upbeat. Revenues and completions are both set to rise for the full year.
