Here are three developing stories you need to know about at the UK stock market open, from Tony Cross.
1. Sofa so good – strong H1 performance at DFS
There’s a positive trading update out from DFS LON:DFS this morning with a number of key factors helping improve performance, including market share gains, lower operating costs and margin improvement. H1 pre-tax profits are now expected to come in between £16m and £17m, around double the comparative although management do concede that economic woes are dampening the outlook for the second half, with rising UK wage costs also a factor.
2. Saatchi’s strategic shift sees revenues grow
The advertising group M&C Saatchi LON:SAA issues a full year trading update this morning noting a strong performance in line with expectations. Like for like revenue growth is set to be around 3.5%, with the note also highlighting cash tailwinds into 2025 and beyond. Macro volatility remains a concern but management are optimistic that recent strategic shifts will continue to yield results.
3. Niche cinema operator Everyman outperforms rivals
Boutique cinema operator Everyman LON:EMAN has its full year trading update out today, too. Group revenues added 17.9% market share increased from 4.8% to 5.4% and net debt has been reduced fractionally, too. The performance is notable in light of the cinema industry having to manage with fewer blockbuster releases following the writers’ strike and what management note as underperformance in Q4 of certain movies.
