Three things you need to know in the financial markets this morning from investment writer, Tony Cross
Tour operator TUI has published half year results this morning, showing a reasonable performance despite a succession of headwinds. Brexit uncertainty, overcapacity in Spain following an upturn in holidaymakers heading for the Eastern med and the grounding of 737-MAX aircraft have all played a role, dragging down the second quarter but turnover is slightly ahead over the 6 month window. Losses in the period are however down and headcount has risen around 8%, suggesting despite stormy conditions the company may be navigating these issues.
SSP, the operators of food retailers in many travel locations has published interim results this morning. The company is struggling to build like for like sales beyond inflation, but new store growth is driving profitability. Shareholders are being rewarded with a 20% increase in dividends and with operating margins nudging a shade higher too, there may be sufficient to impress here.
Kingfisher, the owners of the Screwfix and B&Q brands, published Q1 numbers this morning, presenting something of a mixed bag. UK & Ireland sales remain strong and have been sufficient to deliver some group-wide growth, but territories including Spain, Germany and France continue to languish. Full year expectations are at present unchanged but investors may well be underwhelmed by the numbers.