Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Margin improvements help drive Frasers profitability
Full year numbers are in from Frasers LON:FRAS this morning showing adjusted pre-tax profits up by 13% and landing at the top end of the previously offered guidance, with profitability for FY25 now forecast to increase by around a further 15%.
With the CEO describing it as being a breakout year for the business, the network of brands has been expanded and further efficiencies have been introduced, too. There’s a lot to work through here but one eye catching point is margin improvement in the UK so despite headline sales falling by 3.3%, the segment’s trading profit actually grew by 3%.
#2. Wet weather drags on Dunelm’s outdoor sales but profits ahead of forecast
Keeping with retail and Dunelm LON:DNLM have published their Q4 and full year trading update. Total sales for the year are 4% ahead with digital sales now accounting for 37% of the mix, up 1% YoY. In recent weeks, sales of outdoor furniture have been suppressed by poor weather but June sales were reported as being otherwise good, across a mix of full price and discounted lines.
Profit before tax is now expected to come in slightly ahead of market expectations and there are hints of confidence that the consumer outlook is now poised to improve.
#3. Exceedingly good momentum reported at Premier Foods
Q1 numbers from Premier Foods LON:PFD, the company behind Mr Kipling and many other popular brands, are out today noting headline sales up 5.3% with volume growth and market share gains being reported, too. The momentum from the improved performance is set to be sustained from here with further volume led growth anticipated. Management reiterate that the clearing of the pension deficit also frees up cash for investment in efficiency and innovation as well as supporting a progressive dividend policy.
