Three developing stories at the UK stock market open. See the Companies Reporting diary.
1. Full year numbers from Raspberry Pi show revenues down but cash preserved
Full year numbers from the micro-computer maker Raspberry Pi [LON:RPI] are out today. Despite some rapid expansion of the product range, unit volumes and revenues both fell, causing a significant impact on profitability. Cash balances did however grow which is arguably some cause for cheer and management note that channel inventory has now been normalised and that the medium-term fundamentals remain positive.
2. Sales and profit momentum building at Topps
Topps Tiles LON:TPT issued a first half trading update noting group sales up 4% on the comparative with volume momentum continuing to build as the period progressed. The update also acknowledges that following a review of pricing policies, there has been a strong improvement in gross margins. The cost environment however remains challenging, with minimum wage and NI changes set to cost the business an extra £4m a year.
3. Greencore takeover of Bakkavor moves another step closer
Straight off the back of yesterday’s better than expected results from convenience food manufacturer Greencore LON:GNC, the company has today announced it has agreed key terms in principle with management at Bakkavor regarding a cash and shares takeover. The move would create a business with a combined revenue of £4bn, with a merger expected to deliver some meaningful synergies in the longer term.
