Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Kingfisher interims show optimism over housing market driven rebound in 2025
Interim numbers are out from Kingfisher LON:KGF this morning with the company posting a 1.8% decline in sales although a modest uptick in margins did provide some degree of a buffer in terms of the decline in profits. The sales numbers are seen as in line with expectations and reflected market share gains in the UK and Poland.
Sales are lagging into Q3 but full year forecasts have been tightened with pre-tax profits set to land at the top end whilst free cash flow has been improved by better timing of inventory. Management add that signs of an uptick in the housing market are also giving cause for optimism in the medium term.
#2. Modest improvement at THG, Ingenuity demerger has potential
Online retailer THG LON:THG has its interims out today, noting a modest increase in continuing revenues and a narrowing of the operating loss. FX headwinds with a strengthening pound have been dragging on performance but management note that the strategic priorities previously stated are now being delivered against. Plans also remain to demerge THG Ingenuity, leaving the highly profitable beauty and nutrition business under the main group.
#3. Bumper shareholder returns off back of Playtech’s Snaitech disposal
Following on from yesterday’s trading update, Playtech LON:PTEC has this morning announced that it has entered into an agreement to dispose of Italian gambling company Snaitech to Flutter. The deal has an enterprise value of EUR2.3bn attached to it and completion will trigger a capital return to shareholders of EUR 1.7-1.8bn vis a special dividend.
Whether investors cheer that or look a bit more critically on the executive bonuses that will be paid out as reward for landing the deal – not to exceed EUR100m, mind – remains to be seen.
