Here are three developing stories you need to know about at the UK stock market open, from Tony Cross.
1. Next exceeds expectations – again
The first of the post-Christmas numbers from the retailers is out today with a trading update from Next LON:NXT and once again, the company has exceeded its previous guidance. Underlying full price sales for the nine weeks to 28th December, adjusted down to account for the timing of the end-of-season sale were up 5.7%, compared to earlier forecasts of 3.5%. Full year pre-tax profit guidance is being revised up by £5m to £1,010m as a result and momentum is expected to carry into FY26 with profits of £1,046m now being forecast.
Looking quickly into the detail of the report, management do concede that overseas growth cannot be sustained at current levels, whilst rising labour costs will add £73m over the year ahead.
2. Revenues slump at Mirriad as US markets drag
Mirriad Advertising LON:MIRI has full year numbers out today, with revenues down 45% driven largely by the ongoing decline in linear TV advertising sales and a sluggish integration process in the US. Key European markets have however been flourishing, new partnership agreements have been struck, too and management are supportive of the idea that there’s good momentum here.
3. Disappointing production at Serica, FY25 guidance due later this month
Serica Energy LON:SQZ has issued a production update for the year, with management concluding that the second half performance was disappointing and well below the potential of the asset base. The note indicates that directors are across the challenges that are causing the bottlenecks here and a more positive contribution will be seen in Q1 ’25.
