Three developing stories at the UK stock market open.
1. Expectation of strong summer underpins On The Beach outlook
Travel agency On The Beach LON:OTB has this morning issued a pre-AGM trading statement noting that momentum from FY24 is being sustained, with winter TTV up 18% and summer 2025 some 10% ahead, demonstrating that the company’s proposition is helping it buck wider economic trends. The pace here has given the company the confidence that summer 2025 will now be significantly ahead of the comparative, helping reach consensus estimates for the full year.
2. Return of overseas students and shrinking private market boost Unite
Student accommodation provider Unite Group LON:UTG this morning issued its full year results. The bleak domestic economic outlook isn’t hampering the situation whilst overseas student visa numbers are on the up again, too. Rental growth is up 8.2%, although occupancy at 97.5% is down on last year’s 99.8% print and adjusted earnings are up 16%. The dividend is up 5% and with private landlords leaving the sector as a result of tax changes, the outlook remains upbeat. The portfolio valuation increased by 4.8% and net debt continues to fall.
3. China headwinds persist but Smith & Nephew outlook upbeat in full year results
Smith & Nephew LON:SN. this morning published Q4 and full year results. Noting a strong finish, the company posted numbers ahead of expectations with US sports medicine, ENT and advance wound bioactives performing well, although trade in China continued to drag, reducing Q4 revenue growth by 280bps. Full year profit was up 8.2% and management expect to see another year of revenue growth above historical levels plus margin improvement.
