Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Defensive note from Rightmove as OpenRent partnership to lapse
There’s a note out from Rightmove LON:RMV this morning titled as a guidance update but the root of the news stems from the fact that the company won’t be continuing its relationship with OpenRent beyond 1st September. Rightmove is keen to stress that this is detrimental to OpenRent’s landlord and won’t have any impact on their own guidance for the full year which remains for revenue growth of 7-9% and an underlying operating margin of 70%.
#2. IHG sees operating profits rise 12% but revenue per room slowing
Intercontinental Hotels Group LON:IHG published half year numbers this morning which showed continued growth although the post-pandemic rebound has now faded. Gross revenues were up 6%, operating profits rose 12% and the interim dividend has been upped by a further 10%,
Occupancy rates continue to creep up, adding 0.6% whilst Revenue Per Available Room has also edged higher in most territories. However this is barely outperforming inflation and notable weakness on this metric is emerging in China. The company is eyeing further growth in the underlying portfolio but will this be sufficient for investors?
#3. Optimism that government house building plans will provide lift
Travis Perkins LON:TPK issued its interim results this morning, too, noting that weak demand in end markets and price deflation had combined to erode trading revenues by 4.4% against the comparative, whilst operating profits retreated by around a third. The business is taking action to streamline and shut down loss making operations but there’s also optimism that the new government’s ambitious housebuilding targets will provide a boost in the coming years.
