Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Trading improvements continue but Currys braces for budget impact
Interim results are out from Currys LON:CURY this morning with the electrical retailer noting adjusted EBIT up 41% YoY. Revenues are only up fractionally but tight cost control and improved margins are both helping bolster the underlying market.
Trading since the period end has been consistent with the board’s outlook and full year guidance remains unchanged with both profits and free cash flow expected to improve further. Lower interest rates are also expected to lend support, but it’s not all good news as the company estimate the cost of changes off the back of the recent UK budget will come in at around £32m.
#2. SThree profits downgraded as macro headwinds persist
Specialist science recruiters SThree LON:STEM published a year end trading update today, noting that market conditions remained challenging with group revenues off 9%, with only the Middle East & Asia territories showing signs of growth. There’s little change in the split of work – no major swing between contract and permanent staff recruitment – and those broad macroeconomic conditions are now set to impact full year performance. Efficiency programs are in place but FY pre tax profit is now expected to be around £25m.
#3. Glass Lewis lends support to boohoo directors ahead of next week’s GM
Another statement from boohoo [LON:BOO] this morning, highlighting that proxy vote advisors Glass Lewis have also recommended that shareholders reject the board proposals from Frasers Group LON:FRAS at next week’s general meeting. That comes days after ISS also came to the same conclusion and has the potential to lend some support to the boohoo share price as a result.
