Three things you need to know as the UK financial markets open, from Tony Cross.
#1. JD score with record interim results
JD Sports Fashion LON:JD. has this morning published interim results for the 26 weeks to 3rd August. Group revenues stand at £5 billion whilst pre-tax profits are £406m. Investors are being rewarded with a 10% increase in the interim dividend and full year guidance remains unchanged although currency headwinds following the appreciation of the Pound could take a toll.
#2. MusicMagpie agrees terms for sale to AO World
The electrical retailer AO World LON:AO. has this morning announced it has reached terms with the board of MusicMagpie LON:MMAG to acquire the business at 9.07p per share, giving it a valuation of just under £10m. That’s a 58% premium to last night’s closing price, but perhaps the more important point here is a move into the mainstream for the circular economy promoted by the target business. Management comments note highly complementary business models and also that the deal allows AO to advance its sustainability agenda.
#3. Higher margin growth plan yields results for Shepherd Neame
Aquis-listed brewer Shepherd Neame [AQSE:SHEP] has published full year numbers today, noting a 3.6% increase in revenues, with drink sales by far being the best driver of growth. The note highlights a pivot from off-trade sales to higher margin on-premises trade as being behind the erosion of beer sales volumes but the modest 4.4% increase in underlying pre-tax profits seems to justify the move.
Whilst cost headwinds and consumer uncertainty are also cited, management highlight the speed of the rebound seen in London, with hopes that this will soon percolate into regional operations.