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Marks Surrenders to Sainsbury

Marks & Spencer MKS is giving little away in its first quarter results for the 13 weeks to the 1st July. The subdued tone certainly seems to indicate a surrender to Sainsbury at least for the time being. The quarter did at least see an end to discounting in Clothing & Home, whilst Simply Food openings produced strong growth and food revenue rose by 4.5%. Like for like UK sales however were miserable with Clothing & Home down 1.2% and food down 0.5%, In constant currency terms international revenue for the quarter fell by 4% whilst group revenue rose by 2.7%.

Galliford Try GFRD updates that the year to the end of June has been one of excellent progress and robust market conditions. Underlying results are expected to be strong and the final dividend is expected to be in line with previous guidance.

Page Group PAGE In constant currency terms gross profit for the first half grew by 7.7% to record levels. The UK was bottom of the pile with a fall of 4.5% compared to the Americas which showed a rise of 13.8%.  The weakness of sterling was a major factor benefitting the group and adding £28m to  gross profits for the half year. In the second quarter growth in France rose to 23% but even this was dwarfed by SE Asia with a rise of 35%

Grafton Group GFTU performed strongly and better than the company expected in the 6 months to the 30th June. Group revenue rose by 9% or 5.7% on a like for like basis and 6.2% on a constant currency basis. However, it is important to note that the company remains cautious in the short term because of uncertainties in the economy and fears that spending on housing may decline because of pressure on real incomes. Housebuilders beware !

Ilika IKA continued development of its new batteries during the year to the 30th April but revenue remained small despite nearly doubling to £1.1m. Losses remained level at £3.5m.

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