Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Volume growth beats expectations at Tesco
Supermarket giant Tesco LON:TSCO published interim results today, noting a 3.5% increase in revenues which translated into a 15.8% uptick in adjusted operating profits. Shareholders are seeing the interim dividend increase by more than 10% and management note that the volume growth seen in the first half has been in excess of expectations and that’s upping guidance for the full year. Retail adjusted operating profit for FY25 is now tipped to land at around £2.9bn, up from the “at least £2.8bn” previously cited.
#2. Australian acquisitions help fuel growth at SSP
SSP LON:SSPG, operator of F&B locations at transport hubs, has issued a pre-close trading update. Revenue growth in the second half of the year has been upbeat at around 15% with the APAC and EEME territory performing the best, helped by growth from acquisitions in Australia. Momentum in terms of margin and revenue progression is expected to be maintained into FY25.
#3. Telecom Plus continues run of customer gains
Telecom Plus LON:TEP issued an H1 trading update this morning. Details are limited but the note highlights a third consecutive year of double digit percentage customer gains and there’s confidence that previously set out expectations remain intact. In the medium term, the company is looking to double the customer base to 2 million users, with a string of product evolutions being used to support this.