Here are three developing stories you need to know about at the UK stock market open, from Tony Cross.
1. Full steam ahead for Hornby
The iconic model train manufacturer Hornby LON:HRN has published a trading statement this morning covering the quarter to 31st December. Group sales are 7% ahead on a YoY basis, a significant outperformance against the broader non-food retail market with activity around both Black Friday and Christmas seen as key drivers. YTD gross profits are 10% ahead and margins for the quarter stood at 48%, up from 44%. This turn around, given the economic backdrop, certainly feels noteworthy.
2. Topps Tiles sales accelerate towards year end
Topps Tiles LON:TPT has a trading update out today for the 13 weeks to 28th December. Sales are up 3.5% YoY, with a strong bias into the latter part of that reporting period and continued growth being noted in the digital segment. That’s increasingly important given the impact that government mandated wage increases will have on decimating the company’s profitability, so earning a higher percentage of income from sales involving fewer staff can only be good – at least for shareholders. Succession plans for the CEO who has been at the helm since 2019 are also announced.
3. Likewise FY24 revenues break milestone
AIM listed flooring specialist Likewise LON:LIKE has this morning issued a trading update. Revenues for FY24 increased 7.5% to surpass £150m, with the company also announcing a share buyback, although with that set at just £200k against a market cap of £50m, the impact of this sees likely to be limited.
