Tony Cross
3 min read
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. Ocado expects to turn cashflow positive in H2 ’26
Ocado [LON:OCDO] issued interim results this morning noting strong revenue growth so long as the recently scaled back Kroger and Sobeys contracts are included. Removing that somewhat clouds the picture, although the business remains well capitalised, retail revenues are up 15% and the business is re-engaging with some of the world’s largest grocery markets as they look to find more deals. FY26 technology solutions revenues are set to be in the region of £500m – down from £560m – but with an improved EBITDA margin of 30%, turning cash flow positive in the second half of this year.
2. Sales and margins up at Dunelm
Always a good take on the health of the discretionary UK consumer economy, home furnishings store Dunelm [LON:DNLM] issued a full year trading update this morning. Total sales are 3.1% higher, with digital now accounting for 42%. Gross margins have improved by 10bps and full year pre-tax profits are set to be in line with previous expectations. Whilst the sales growth figures are only just keeping pace with inflation, to do this and maintain margin given the current backdrop is notable.
3. Economic uncertainty hammers Crest Nicholson, H1 completions down 20%
Housebuilder Crest Nicholson [LON:CRST] issued interims today for the period to 30th April. The first six months has been a disappointment, with revenues down 20%, gross margins falling from 14.2% to 7% and a pre-tax loss of £17.9m being posted, reversing the profit a year ago of £7.9m. Completions were also around 20% lower and the interim dividend has been suspended. Economic uncertainty is the key driver here and whilst management are executing cost cutting plans, covenants relating to the revolving credit facility also need to be renegotiated.
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