Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Cash outflows falling at Ocado
Ocado LON:OCDO posted interim results today with a 12.6% uptick in revenues and more importantly a close-on halving of losses which now stand at ‘just’ £154m. Cash outflows are falling and current forecasts have the business seeing a material cash flow improvement this year and being cash-positive during FY26. Perhaps most critically, the JV with Marks & Spencer LON:MKS – Ocado Retail – is EBITDA positive although falling food inflation and value pricing is set to weigh on average selling prices.
#2. B&M: like-for-like revenue contraction highlights cost of living crisis
There’s a trading update for Q1 out from B&M European Value Retail LON:BME that shows the company continuing to post revenue growth albeit at a pace that’s barely keeping up with inflation. Group sales are up 2.4% year-on-year using a constant currency basis, but that has also been driven by new store openings. Contraction was reported on a like-for-like basis, reflecting tough comparatives but also underlining the scale of the cost of living crisis.
#3. Steady performance at Experian with Q1 update
There’s also a trading update in from Experian LON:EXPN this morning covering the first quarter and noting growth consistent with expectations. Revenues are up by 7%, with the full year growth outlook also unchanged, both in terms of organic sales and margin improvements.
