Here are three things you need to know in the financial markets this morning from investment writer, Tony Cross.
#1. Virgin Wines sales remain strong as lockdown ends
Virgin Wines [LON:VINO] has published an interim results this morning, showing revenues in line with the 2020 comparator and some 55% higher than pre-pandemic levels. This is significant as it underlines the comparatively sticky nature of clients onboarded, although with the membership roll growing modestly, this does suggest average order size is falling a little. The fact the company has done so well against those comparatives however does suggest that it’s something investors may want to see as being a glass half full outcome.
#2. Imperial Brands updates on withdrawal from Russia
Imperial Brands [LON:IMB] has this morning provided an update on its Russian operations. The company is transferring these to a local partner to allow for an orderly exit from the market, something which is probably seen as having positive implications in terms of maintaining IP. There will however be a impact on net revenue growth this year, which is now expected to come in between 0% and 1%, down from the 1.4% seen last year.
#3. Bumper numbers for Ferguson but margin headwinds tipped to increase
There’s an upbeat set of interims out from Ferguson [LON:FERG] this morning. The US building supplies company continues to see good growth with net sales up by almost 30%, gross margins improved by 90 basis points and operating profits up by around two thirds. The company notes that markets remain supportive and solid revenue growth is expected to continue into the second half, although this will be pitched against tougher comparatives. It adds that those first half tailwinds on margin may moderate but that full year expectations remain in tact.