Here are three developing stories you need to know about at the UK stock market open, from Tony Cross.
1. Chequered Q3 performance for Burberry
There’s a Q3 trading update out from Burberry LON:BRBY this morning. Despite an upbeat intro from the chief executive, the reality is sales remain under pressure with revenues down 7%. There’s a bright spot in terms of North America, but in other territories the marque continues to find traction. Management are working to stabilise the business and believe the strategic plan will work, but concede they remain early in the cycle here.
2. Tasty: headwinds persist in casual dining sector
Casual dining operator Tasty LON:TAST has published a full year trading update. This makes for gloomy reading, adding to the recently published H2 update and reiterates the challenges the company faces off the back of those recent NI changes implemented by the government.
The company now expects to report FY sales of £36.6m against £46.9m in ’23 and EBITDA of £3.9m v £4.4m. Cash is expected to be £3.3m and critically the company is debt free. Further strategic plays are detailed in order to try and navigate the challenging environment, but it doesn’t make for comfortable reading.
3. ITM Power signs development contract with European energy company
A large scale European energy company has contracted with ITM Power LON:ITM to jointly develop a design standard for a 10MW green hydrogen production plant. This will be deployed across several projects in the UK and is arguably something worth cheering as the week draws to a close. It remains a small step but the project is built on well-regarded ITM technology.
