UK Stock Market News: Barratt Redrow, WH Smith, Babcock

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. Revenues and margins up but FY27 completions trimmed

Housebuilders Barratt Redrow [LON:BTRW] issued full year numbers this morning with the company noting a 5% increase in completions and a 6.6% uplift in revenues. Operating profit margin has also been extended materially, moving to 7.3% against the 4.5% recorded for the comparative with the reservation rate and forward sales continue to improve, too.

FY27 guidance for completions has however been lowered with planning delays again being cited, conflicting with the narrative that has been coming from Westminster for the last couple of years now.

2. WH Smith sees revenues up, profits landing at lower end of forecast

WH Smith LON:SMWH, the operator of retail outlets across transport hubs, hospitals and other key venues issued a pre-close trading update this morning. Headline profits for the year are now expected to land at the very bottom of the previously offered range of £75m-£90m, with management noting this reflects lower trading margins, a reduction in brand marketing and inflationary headwinds.

Group revenues are 5% up although softening consumer demand in the final quarter from the US market is notable at a market level. Results will be published mid-November.

3. Little of surprise in Babcock’s pre-AGM update

Defence and nuclear engineering company Babcock LON:BAB issued a pre-AGM trading update this morning, noting trading in line with expectations. There are no real surprises apparent in the note but momentum has been positive since the start of the year suggesting that there’s little for measured investors to be concerned with in this filing.

In case you missed it

We start with UK shares and a look at broker research released over the last week, with Antofagasta, Renishaw, Harbour Energy, Victrex and the housebuilding sector all featuring. We’ve got a comprehensive list too, in case you missed them.

We follow up on Kier Group’s update yesterday with our take on the FTSE 250 construction group. With the order book growing, investors will now be focusing on margins.

And Investment group Tufton has expanded into commodities and natural resources, bringing in an established team to manage the outperforming CQS Natural Resources Growth and Income investment company.

Look out for updates today from Babcock, Barratt Redrow, City of London Investment Group and Moonpig.

With just over an hour to run before yesterday’s close, the AIM All Share was trading close to flat, broadly in line with other European markets. It’s a big week for rate calls so there may be a temptation to sit on hands in the near term and the index was down less than a point at 784.28.