Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Marks Electrical sees sales rise but costs eat into margin
Marks Electrical LON:MRK published full year results this morning, noting record revenues of £114m although downward margin pressure saw EBITDA shrink by almost one third despite the higher income. The dividend is being maintained at last year’s level thanks to solid cash reserves and management note that FY25 has started well. Rising delivery costs may be something of a red flag for investors but as the new trading year gets underway double digit growth has been recorded in the first quarter.
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#2. Focus on core lines sees revenues down but profits up at AO World
Keeping with the domestic appliance sector and AO World LON:AO. had full year numbers out today, noting a 9% decline in revenues after the company exited some non-core channels, but operating profits rose by almost 200%. The company’s cash position is also markedly improved from a year ago and expectations are for double digit revenue growth to be posted in the year ahead.
#3. In-line performance at PZ Cussons despite currency headwinds
PZ Cussons LON:PZC has published a short trading update covering the final quarter. This notes that performance was in line with management expectations and the business expects to report full year revenues of around £528m. Despite a marked devaluation of the (Nigerian) Naira, adjusted operating profits are also set to land in line with expectations.
