Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Jet2 revenues take off, now almost double pre-COVID levels
Full year numbers are out from Jet2 LON:JET2 this morning, showing revenues up 24%, operating profits up 9% and investors being set to receive a 34% increase in the dividend payment. Revenues are close on double pre-COVID levels and management add that they have recently exercised rights on securing new aircraft, giving them a supply stream through to 2035.
The note does highlight that passengers are now booking much closer to departure which is making forecasting difficult and load factors are down marginally. A swift recovery in the underlying economy would certainly feel welcome here.
#2. Gleeson beats expectations but sales momentum lacking
There’s a full year trading update out from low cost housebuilder MJ Gleeson LON:GLE which highlights a slight increase in completions for FY24 but adds that over the last few months, sales rates have been less vigorous than expected, although management do expect to see a recovery in the current financial year as mortgage rates start to ease. The company’s cash position stands at £12,9m, up from £5.2m a year ago.
#3. Recruiter Hays paints a downbeat global picture
Recruiter Hays LON:HAS has posted a Q4 update this morning, reflecting the theme that has been seen from others in the sector. Net fee income globally is down by 17% with all divisions weighing but the performance in ANZ was the worst geographically, whilst income from permanent hires is contracting faster than that seen for temp work. The company is deploying efficiency savings on back office operations but adds that it expects near-term conditions to remain challenging.
