Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Full year results show imminent margin squeeze for Unilever
Full year results are out from Unilever [LON:ULVR] this morning, with the company posting a 4.5% increase in underlying sales growth – the fastest it has recorded in almost a decade. However looking ahead, input price inflation is going to serve a blow to the company in the early part of the year and possibly beyond. This in turn is predicted to eat into margins, especially in the first half, but it will still be maintained around the 16-17% level. Dividends are up by a modest 3% but the anticipated strong cash generation is also fuelling a share buyback scheme.
#2. Dividends back on track for Redrow
Interims from house builder Redrow [LON:RDW] are out today, with revenues up by a mere 1% against the same period a year ago. However underlying house price inflation continues to out-run build cost inflation, leading to some modest upward revisions in the 2024 guidance. Interim dividends have been increased by 66% as the company returns to its previously stated distribution policy.
#3. 88 Energy drilling permissions granted
Some news from AIM listed 88 Energy [LON:88E], which this morning confirmed it had seen its drilling permit in Alaska confirmed despite pushback from environmental bodies. Operations are expected to start early next month, with drilling set to take a further 3-4 weeks. The share is no stranger to volatility and as news flows out here, that theme can expect to remain very much in play.
