Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Persimmon lays foundations for upbeat full year, flags rising costs
Housebuilder Persimmon LON:PSN has published a Q3 trading statement this morning noting that positive momentum has been sustained by the business over the summer and the company remains on track to deliver more than 10,500 completions for the full year, up from 9,922 in 2023. Compared to the situation at this point a year ago, the current sales position is around 17% improved at £2.02bn although the note does caution of rising signs of build cost inflation creeping in as a consequence of new building regulations and rising NI costs.
#2. Food sales bolster Marks and Spencer
Marks and Spencer LON:MKS has half year numbers out today which headlines with a 17% increase in pre-tax profits despite cost inflation remaining elevated and the consumer environment remaining uncertain. Food sales growth has outstripped clothing and home, but debt is being paid down and early trade in the second half is described as remaining on track.
#3. 67% hike in National Insurance contributions at Wetherspoons set to contribute to price rises
Pub operator JD Wetherspoon LON:JDW has issued a trading update for the 14 weeks to 3rd November. There’s some interesting insight here as to the impact of the recent budget on the business, with the company estimating that taxes and business costs will rise by £60m, including an additional 67% increase in National Insurance contributions. Sales for the reporting period were however at a record high but price increases now look inevitable even as the chain looks to push its value proposition.
