Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Record revenues and sunny outlook at On The Beach
Travel agency On The Beach LON:OTB has this morning published its pre-close trading statement ahead of next week’s year end. This notes record total transaction volume of £1.2bn, up 15% year on year adjusted pre-tax profits in line with market expectations, no debt and a £95m cash reserve. The momentum seen in recent months is being sustained with winter volumes currently 24% higher than they were a year ago, along with encouraging early bookings for summer 2025.
#2. Market share rises as new cinemas open at Everyman
Cinema operator Everyman Media LON:EMAN has interims out today. Again this offers some broader insight into the health of the consumer economy, with the numbers noting admissions up by almost 20%, gross profit margins improving from 65.6% to 66.5% and modest increases in per-head spend. The opening of new cinemas has helped the company expand market share although it remains very much at the boutique end of the spectrum. Management note confidence over the performance in the second half of the year.
#3. Dividend suspended at DFS as sofa sales sag
Perhaps a rather more cautionary note on consumer demand is out from DFS LON:DFS who issued full year numbers today. Gross sales were down by 7.9% although margins did improve by 140bps. That has however pushed the company to a pre-tax loss and resulted in the final dividend being suspended.
Lower order intake, shipping delays and the high cost of credit are all cited as drivers. Management are however optimistic that the market is recovering with an upturn in orders over the last 12 weeks, a trend they expect to continue recovering gradually, but the note adds there has been a long term impact on the broader industry.
