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Ian Pollard – Winter Of Discontent Impacts Begbies’ Business.
Begbies Traynor BEG claims that a winter of discontent has impacted business with 481,000 now in significant financial distress. Those in ‘critical’ financial distress increased by 25% year on year as the year came to a slow end and stand at 2,183. Real estate was the hardest hit sector in quarter 4 with a 9% increase. The retail industry should, it forecasts, be braced for a tough start to 2019 after poor Christmas trading from M&S and Debenhams. Link here to a detailed article by Begbies Traynor Regional Partner Julie Palmer
Wizz Air Holdings WIZZ describes its third quarter performance to the 31st December as solid, with profits for the quarter collapsing by 87.6%. Fear not however as full year profit guidance is maintained. Passenger growth during the quarter was 15% and revenue 21%. A new carry on bag policy saw revenue per passenger rise by 7% and means that passengers now get the injured backs instead of the baggage handlers. Like all low cost airlines it is having to face the challenging industry-wide operating environment
Solid State plc SOLI updates that trading results for the year ending 31 March 2019 will now comfortably exceed current market consensus guidance. Revenues are expected to be above current guidance and adjusted profits significantly ahead. The strong demand seen in the first half has continued into the second half and the Value Added Distribution division has is now expected to deliver results well ahead of management’s previous expectations.
Ingenta ING is now leaner and focussed on delivering first class services to all its customers claims the CEO, meaning it is significantly better placed to propel the business through the next stage of its growth. The Board confirms its intention to pay a dividend of 1.5 pence per ordinary share for the 2018 financial year.
Staffline Group STAF announces that publication of the results for the year ended 31 December 2018 has been delayed and a further update will be provided as soon as possible.
Rhythm One plc RTHM confirms that it is in advanced discussions with Taptica International Limited (“Taptica”) regarding a potential all-share offer for RhythmOne by Taptica.
Inspired Energy INSE expects to announce another strong set of results, delivering good growth in revenue, profits and cash for the year to the end of December. Group revenues are expected to be approximately 21 per cent ahead of 2017 with revenue growth expected to be approximately 29% ahead
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Galliford Try – Are Housebuilders Running Out Of Steam
Galliford Try GFRD expects record results for the year to 30th June which as a housebuilder, is only what one would expect. Underlying demand, the availability of mortgage finance and of course the governments Help to Buy Scheme all give cause, says the company, for continued confidence. Completions for the year rose by 11% from 2769 to 3,078 units However as with other house builders there are some warning signs on the horizon. Firstly the average private sales price rose by only 2% which is miniscule compared to what the housebuiders have been getting away with over the past few years. Secondly, which is more worrying, revenue secured for the new financial year is down to 82% from last years 88%.
ASOS plc ASC has enjoyed strong retail sales growth during the four months to the 30th June. Even the UK has been strong with a rise of 28%. International retail sales slightly beat that with a rise of 30%, the US leading the way with a jump of 53%.
Dechra Pharmaceuticals DPH saw strong trading in the year to the end of June with like for like revenue growth of 11%. Overll growth including acquisitions, came out at 21%. Dechra is one of the few company’s to describe the collapse of sterling as a currency headwind but it claims this has impacted growth by 3%. North America produced excellent results with growth of 37%.
Hotel Chocolat Group HOTC which launched on Aim in May, saw revenue for the year to 26th June slightly ahead of market expectations with a rise of 12% whilst digital rvenues were up by 20%.
Rhythm One plc RTHM expects first quarter trading to the end of June to be materially ahead of management expectations. A return to full year profitability is expected in 2017.
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