Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Just Eat share buyback launched despite losses
Half year numbers are in from Just Eat Takeaway [LON:JET] this morning with adjusted EBITDA up 42% from the position a year ago as reduced order fulfilment and central costs fell away. Gross Transaction Value excluding the US was 3% higher and the business remains on track to meet full year expectations although net losses for the reported period were €43m higher at €301m. Positive free cash flow has however facilitated a share buyback program of €150m over the next eight months.
#2. Taylor Wimpey: is the new government already providing homebuyers with confidence?
Housebuilder Taylor Wimpey LON:TW. issued its half year numbers this morning with the pattern observed across sector peers being repeated. Revenues were more than 7% lower, operating profits dropped by 22% and margins declined 240bps. Current trading is however showing a marked improvement despite now being in the quiet summer season with July sales running at 0.64 per outlet per week, up from 0.47 a year ago and full year completions are now being revised towards the upper end of previously stated guidance.
The note adds that TW looks forward to working with the new government but adds that borrowing costs are impacting the ability of Housing Associations to commit to new spend, something that could impact order books in the medium term.
#3. HSBC share buyback extended by $3 billion
Global bank HSBC LON:HSBA has published interim numbers this morning with a set of number which are seen as having beaten market expectations. Profits were down slightly to $21.6bn, but this was a clear $1bn better than consensus forecasts indicated. Critically the company is extending the share buyback scheme by a further $3 billion, adding to the $5 billion already announced earlier this year. RoTE came in at a punchy 21.4%, down from the 22.4% posted a year ago although this has been fuelled by exceptional items and going forward the expectation is that this will retreat to the mid-teens.
