Three developing stories at the UK stock market open.
1. Market share gains continue at Dunelm
Interim numbers are out from Dunelm LON:DNLM this morning with the company noting total sales up by 2.4% and gross margins improved by 10 basis points. That has been sufficient to hike the interim dividend payment by 0.5p per share and whilst that all looks marginal in a challenging economic environment, the note adds that the company’s market share has risen 7.8% and active customer numbers are also up. Store expansion continues to progress and there’s also a reminder that one of the company’s brands was awarded the Royal Warrant.
2. Mortgage market helps rebound at Bellway
There’s a trading update out from Bellway LON:BWY covering the six months to the end of January. Completions are up 12% with average selling prices broadly flat. Full year guidance remains on track and management acknowledge the weaker comparatives given the recent historical pricing issues associated with mortgages. The traditional spring pick up in customer enquiries has also been noted as encouraging.
3. Q4 numbers from BP fall shy of analyst expectations
Fresh from the news of an activist investor stake building, energy giant BP LON:BP. has published Q4 numbers this morning which show a sharp drop in profitability, along with a pledge to shake up company strategy. The decline was even slightly worse than had been forecast by analysts. Full year return on capital employed fell from the 18.1% recorded a year ago to 14.2% for 2024.
