Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. De La Rue’s strategic update hints at potential asset sale
There’s a strategic update out from De La Rue LON:DLAR this morning which hints at progress having been made in the potential disposal of assets. This would involve offloading either the currency printing or authentication division, allowing management to focus on driving better shareholder value from a smaller product base. There’s no further detail here and obviously the diversification play that is currently on offer can’t be understated. The company adds that full year expectations remain intact.
- Three Quick Facts: Direct Line, Loungers, Dr Martens
- Companies Reporting: Pets at Home, Salesforce, Dr Martens
- November UK economic numbers provide a boost for UK stocks
#2. Auto Trader’s market share steady, profit growth impressive
Auto Trader LON:AUTO has published full year results this morning noting group revenues up 14% and group operating profits advancing by 26%. Shareholder returns have been 10% higher than the comparative, management note that the new trading year has started well and expect to see another good year of growth. Market share – an impressive 75% when it comes to time spent on auto classified ads – remains unchanged YoY.
#3. Will full year numbers put the boot into Dr Martens again?
Iconic footwear manufacturer Dr Martens LON:DOCS published its full year results today with a lagging performance in the US continuing to dominate the numbers. Revenues are down 12.3% which is higher than had been forecast, but adjusting for currency headwinds improves matters slightly. Direct to consumer revenues are on the rise, pre tax profits are 46% lower and the dividend is being cut by more than half. It’s fair to say the stock has taken a kicking since IPO, but with debts and the cost of servicing them still rising, will we see any let-up here?
