Three developing stories at the UK stock market open.
1. Bellway eye cumulative 2yr volume growth of 20% by summer ‘26
Interim numbers from Bellway LON:BWY are out this morning with the housebuilder noting completions up 11.9% against the comparative and revenues some 12.3% higher. Management notes this as being a strong first half with customer demand improving materially. The company remains on track to deliver 8500 homes this year and if conditions remain stable expects to see two-year cumulative growth of 20% by FY26.
2. Shareholders see 12% dividend jump at AG Barr
Drinks maker AG Barr LON:BAG published its full year numbers this morning with revenues 5.1% higher, operating margins up by 130 basis points and a 15.8% improvement in adjusted pre-tax profits. Cash in hand is up 19% and shareholders are being rewarded with an inflation-busting 12% dividend uptick. Outlook for the year ahead is unchanged with further revenue growth and margin improvement forecast, with guidance taking into account a range of factors that are likely to weigh on performance.
3. Share buyback extended by £29m as Fevertree expansion continues
The high-end maker of mixer drinks Fevertree LON:FEVR published its full year numbers today and the good news keeps coming despite the fact that the brand is increasingly saturating the market. Revenue growth rose 7% in H2 to deliver 4% growth for the full year, there was a notable £96m improvement to working capital and management have announced they will be extending the share buy back by an additional £29m. Management are in agreement with analyst guidance for the year ahead that will see low single digit revenue growth as a result of transformation in the US market and 12% group EBITDA margin.
