Here are three developing stories you need to know about at the UK stock market open, from Tony Cross.
1. Record Q3 revenues at Mitie
Facilities group Mitie LON:MTO has this morning issued a Q3 trading update, noting record quarterly revenues for the period, up 15% YoY and total contract value of wins, extensions and renewals of £4.8bn. This comes as the company starts to deploy a three year transformation plan which is clearly delivering the intended results. The strong momentum here is expected to carry into Q4 and although management acknowledge that will be against a tough comparative, it should still be a market-leading outcome.
2. THG notes improved start to new financial year
THG LON:THG has a Q4 trading statement out today, which has also enabled the business to draw conclusions for the full year which management note has been in line with expectations. With the Ingenuity arm now spun out into a separate company, the core business is expected to deliver mid-single digit revenue growth in FY 2025 and the note also highlights a much improved start to the current trading year, too.
3. Lacklustre sales growth at group level, Primark US shines
Primark owner Associated British Foods LON:ABF has a trading update out this morning for the 16 weeks to 4th January. Given the inflationary backdrop, revenue growth seems unlikely to generate much excitement. Primark sales were 2% ahead although UK & Ireland sales over the period with an uptick over Christmas failing to counter the general air of consumer malaise.
Outperformance was however noted in the emerging US market. Looking ahead, the company eyes low single digit sales growth in 2025. Management also remain convinced that the UK proposition will continue to deliver underlying growth.
