Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Vistry plots £1bn return to shareholders over 3 years
There’s a trading update out from the housebuilders Vistry Group LON:VTY this morning, covering the six months to 30th June. The company’s share price has had an incredible run since the election last week, adding close on 10% amidst speculation a building boom will now be seen, but looking at what’s happened so far, expectations are for operating H1 profits to be 10% higher, completions to be up 8% and net debt to post a modest decline, too.
Management also note plans to achieve a 40% ROCE and return £1bn to shareholders over the next three years, but will this aggressive approach prove too contentious for the new government?
- Three Quick Facts: Gamma, Begbies Traynor, Topps Tiles
- Three Quick Facts: Begbies Traynor, Melrose, Judges Scientific
- Three Quick Facts: IAG, Serco, Vistry
#2. Insolvency activity remains elevated for Begbies Traynor, no quick let-up in sight
Full year numbers are out from the insolvency specialist Begbies Traynor LON:BEG noting a 12% uptick in revenue and a seventh consecutive year of dividend growth. Management add that insolvency levels across the UK remain at elevated levels and they expect this pattern to continue into next year as high interest rates continue to weigh on corporate performance. There’s no clear expectation here that the new government will deliver any quick support for struggling businesses.
#3. Hunting’s order book approaches record highs
A H1 trading statement is out from Hunting LON:HTG ahead of half year results due at the end of next month. The order book is almost 25% higher than it was at the end of 2023, EBITDA for H1 is set to come in above management expectations and the outlook for the full year also remains positive. Looking beyond that, the strong momentum from the current order book is tipped to continue driving growth into FY 25, too.
