Three developing stories at the UK stock market open.
1. Greggs on a roll as divi up and staff share £20m payout
Full year results from Greggs LON:GRG, popular purveyors of pies and sausage rolls, are out this morning, with sales up 11.3%, pre-tax profits 8.3% ahead and shareholders set to receive an 11.3% uptick in their dividend payments. The company continues to broaden its presence away from the traditional high street venues, with a store estate standing at 2,618 units by the end of last year.
Plans laid out in 2021 to double sales over five years remain on track. Whilst acknowledging ongoing cost of living concerns and inflation pressures, management believe the value proposition leaves the company in a strong position.
2. Record profits at Beazley sees share buyback and dividend rerate
Insurer Beazley LON:BEZ has full year numbers out today, noting pre-tax profits hitting a record, up by 13% off the back of a 10% uptick in premiums written. That has given an undiscounted combined ratio of 79% – so there’s a lot of profit in the premiums that are being written – enabling a $500m share buy back, plus a rebasing of the dividend which is to rise by 76%. That combined ratio is likely to be less impressive – around the mid 80’s – this year as the impact of wildfires takes a toll but in an era of accelerating risk, management believe there’s more growth to come.
3. Steady progress as Oxford Nanopore look to mid-term goals
Oxford Nanopore LON:ONT, the molecular sensing technology firm, also issued full year numbers. Underlying revenues added nearly 20% – even higher on a constant currency basis – whilst gross profits added 16.5%, margins increased by 420bps and losses were trimmed marginally, too. Revenue growth for the year ahead is set at 20-23%, with the company expecting to reach EBITDA break even in FY27 and cash flow positive in FY28. With £400m cash on hand, management add that this should see them through to achieving those medium term targets.
