Three developing stories at the UK stock market open, from Tony Cross.
1. Retail remains in the rough for Pets at Home, vets business doing well
There’s a Q3 trading update out from Pets at Home LON:PETS this morning, noting revenues up 2.3% with the vet business significantly outperforming the softer retail division. Management note that the full year outlook remains on track, gross margins have been maintained despite weaker consumer confidence. The note highlights the impact of some costs being brought forward with regard to a site relocation but FY25 is still set to finish with a robust balance sheet.
2. Rentokil perform in line with expectations, N. America CEO to stand down
Rentokil Initial LON:RTO have a full year trading update out, noting performance in line with expectations. Group organic revenue growth was 3%, with a notable year on year improvement in the North American market performance being reported in the final quarter. The US CEO is leaving in the spring to join another PLC but the update is at pains to point out how regional performance has been in line with market expectations, too, and that he will help with an orderly transition.
3. Challenging FY24 to be followed by tougher FY25 at SThree
Specialist STEM recruiter SThree LON:STEM has its final results out today, reflecting the ongoing challenges in the global recruitment market. Revenues are down 10%, profits down 13% and shareholders will see the final dividend cut by more than one fifth. The challenging conditions are expected to persist through FY25 and this is on track to deliver a bruising profitability reading for the year ahead – something that has already been flagged to the market.
