Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Profits rise at Marshalls despite sluggish market
Sustainable building supply company Marshalls LON:MSLH has interims out this morning, with revenues down 13% reflecting the challenges of the wider sector. Management see this as being a resilient performance however, leaving the company well positioned to exploit the uptick with the 2024 outturn still forecast to be in line with expectations. Tight cost control over the period has also helped boost profitability despite falling income.
#2. Despite headwinds, market share & profits up at Stelrad
Radiator distributor and manufacturer (and sponsor of Newcastle Falcons rugby) Stelrad LON:SRAD published interims today, noting revenues down 9%, in line with expectations and reflecting the challenging macroeconomic environment. However, operating profits are up by 13%, margins are also ticking higher and the domestic performance was notable with sales just 1.5% lower. Market share is also growing and the full year outlook remains unchanged.
#3. S&U: motor financing lags property bridging loan performance
S&U plc LON:SUS, the specialist property and motor lender, has published a trading update this morning, with management noting that it remains a game of two halves. Demand for property lending is growing whilst the motor side of the business is still seeing a period of retrenchment, hampered further by regulatory action. The property loan book has grown by almost 50% over the last 12 months, contrasting with a 6% decline in the value of the car financing book.
