Three developing stories at the UK stock market open, from Tony Cross.
1. Can response from J-Mat placate activist investors?
Johnson Matthey LON:JMAT has this morning issued an update in response to the input it received from activist shareholders last month. This outlines the refined objectives of the business under the recently appointed CEO, highlighting the company’s plans for cash generation and an improved return on capital. There’s a lot to filter through in today’s update but more focused capex and a step change in cash conversion are promised. The investor response will be telling.
2. Q3 numbers show Dr Martens remains big in Japan
A trading statement for the 13 weeks to 29th December is out today from Dr Martens LON:DOCS. Q3 trading was as expected and the full year picture remains on track. Revenues are up 3% on a constant currency basis and wholesale revenue growth was a stand out, but that did come against a weak comparative. Regionally, trade in Japan – the company’s largest market – surged, and management note improvements in terms of the US market where direct to consumer posted positive growth in the period.
3. Ryanair Q3 update shows strong Christmas period
Ryanair [LON:0RYA] has published is Q3 update today, noting passenger growth of 9% and total revenue up by 10%, helped by marginally higher fares along with a surge of last minute bookings over Christmas. Ancillary revenues also gained, adding 10% although operating costs continued to track higher, too.
Subject to no additional aircraft delivery delays, the company expects to carry almost 200m passengers for the full year although notes that Q4 won’t benefit from the timing of Easter. Full year post-tax profit is guided as being around EUR1.6bn, although an array of external factors could yet weigh here.
