Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Market outperformance brings cheer to M&B
Mitchells and Butler LON:MAB has issued interim results this morning with like for like sales up 7% and a markedly improved operating margin of 11.7% up from 7.8% at this point last year. The full year outturn is now expected to be at the top end of consensus with momentum then being carried into FY25. Management add that they are seeing outperformance against the market, whilst easing inflationary pressures are also helping bolster profitability.
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#2. British Land: limited progress, but asset disposals offer cause for optimism
British Land LON:BLND issued its full year numbers this morning, with profits up 2%, earnings per share 1% higher and the dividend also up by 1%. The company’s portfolio valuation is 2.6% lower than it was a year ago, but the note also highlights that the £410m worth of disposals for the year have been achieved at an 11% premium to book value. Management are comfortable with market EPS forecasts for the coming year.
#3. Upbeat sales and cost savings lift M&S
There’s a sharp uptick in pre-tax profits at Marks & Spencer LON:MKS which have come in some 58% higher than they were a year ago. Food sales are up 13% and clothing and home up 5.3%, but the share of losses being carried off the Ocado JV has risen to £37.3m. Further progress is eyed in the year ahead and management note that increased staffing costs will be offset by falling energy prices and other structural cost reductions. A final dividend of 2p has been declared.
