Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Ocado’s rising sales see FY rev guidance upgraded
Ocado LON:OCDO issued a trading statement this morning, which headlines with an upgrade to full year revenue guidance following continued strong growth through the quarter. Sales are now expected to increase by low double digit percentage terms, up from the previous call of high singe digits. Retail revenues for the quarter added 15% thanks to an increase in the number of oders being placed each week. Basket values were flat but the average number of items in each rose marginally. This all plays into the idea that the choice/value strategy being played by the company is yielding results.
#2. Next interims see full year profit forecast upped
Keeping with a theme here and Next LON:NXT published interims this morning, also upgrading full year guidance. Full price sales performed well in H1, up by 4.4%, but over the first six weeks of H2 this metric has exceeded expectations and was up 6.9% against the comparative. As a result, full price sales for the full year are tipped to be 4% ahead and pre-tax profit guidance is upped by £15m to £995m, 8.4% ahead on last year’s number. An interim dividend of 75p per share has been declared.
#3. Petrel Resources interims strike muted tone
Petrel Resources LON:PET has released interims this morning revolving largely around a sobering note from the Chairman. This flags systemic industry problems although is tinted with some cause for optimism. It’s hardly a rabble-rousing statement, but will talk of rare earths be sufficient to deliver investor confidence?
