Three key news stories unfolding as the UK stock market opens. Check out our companies reporting diary for upcoming results from FTSE 350 and selected international stocks.
1. Macro headwinds see slower outlook at Speedy Hire
Speedy Hire LON:SDY issued interim results this morning noting a modest increase in revenues but the £4.6m operating profit posted in the comparative has morphed into a £5.8m loss. A subdued market backdrop, rising wage costs and reduced hire revenues have impacted margins, with the macro headwinds expected to prevail for the remainder of the year.
A transformational commercial agreement is now in place with ProServe which is expected to generate significant accretive earnings, but will investors struggle with today’s update?
2. Pets at Home launches retail turnaround plan
Pets at Home LON:PETS published full year numbers this morning with group revenues off 1.3% but profits before tax some 29% lower. Margins have been squeezed but despite that the company remains on track to deliver against the revised FY profit guidance offered in September. The interim dividend is being maintained and the company’s diversification between vets and retail is also providing some insulation when it comes to weakness in discretionary spend, but a turnaround plan is being implemented for retail.
3. Energean trading statement shows demand recovery in Q3
Energean LON:ENOG released a trading statement for the first nine months of the year, headlining with a 3% drop in revenues following weaker oil prices and production suspensions, although demand was accelerating materially in the third quarter. Full year guidance remains unchanged, in part thanks to lower production costs in Greece although increased CapEx is also in evidence.
This article does not constitute investment advice. Do your own research or consult a professional advisor.
