Here are three developing stories you need to know about at the UK stock market open, from Tony Cross.
1. easyJet holidays arm continues to deliver low season profit boost
easyJet LON:EZJ has this morning published a Q1 update, noting that losses have been significantly reduced as passenger numbers grew by 7%, with the easyJet holidays division also posting a strong run. With good forward bookings for the year ahead being reported and cost pressures easing slightly, the company remains on track to deliver pre-tax profits in the medium term of more than £1 billion.
2. ‘spoons sees Christmas sales advance but rising costs weigh
Pub operator Wetherspoons LON:JDW has a trading update out today, noting that sales for the 25 weeks to 19th January were up 5.1%, with a slight outperformance over the main Christmas period. The net pub estate has contracted by 18 to 796 properties although plans for new openings continue apace, including a further four franchises venues in Haven holiday parks.
Chairman Tim Martin’s parting line on the update is that the company is confident of a reasonable full year although forecasting is more challenging owing to increased costs, with the changes to National Insurance and minimum wages adding £60m to the tab.
3. Vacancy rate rises as rental prices edge up
Great Portland Estates LON:GPE has published a Q3 leasing update, reporting another upbeat period of trade. Strong demand is seeing the company post numbers that meaningfully outperform the Estimated Rental Value, something that seems notable against the choppy macroeconomic backdrop, although the positive messages here do need to be offset by the fact that the vacancy rate now stands at 6.3%, up from 4% at the end of September.
