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Ian Pollard – Persimmon #PSN new house price inflation falls to 1%

Persimmon plc PSN claims to have delivered another strong trading performance in 2018 with total Group revenues of £3.74bn., 4% higher than the previous year. A little cloud in the sky appeared in the shape of the average selling price  increased by only 1%, which from memory is the lowest for many a year and not something which housebuilders welcome because they think it indicates the market is weak and they can not sell their houses. Housebuyers however can see it as a very good thing which eases the burden of above inflation price increases which the builders used to impose with such glee. Forward sales at 31 December were 3% ahead of 2017 which shows the benefit for the builders of more stable prices. Pre-tax profits for 2018 are expected to follow a similar pattern and be modestly ahead of current market consensus.

Savills plc SVS experienced a robust closing quarter and produced growth in both revenue and underlying profits for the full year. The residential business continued to perform well in challenging market conditions. These achievements came against a backdrop of heightened uncertainty through the last quarter as Brexit, US trade policy produced concerns.

Games Workshop GAW continues to be in great shape says the CEO as the interim dividend is increased from 61p to 65p for the six months to the 2nd December after Revenue rose from £109m. to £125m. Basic earnings per share for the half year have grown from 96p per share to  100.8p

Spirent Comm PLC SPT updates for the final quarter  to the 31 December and for the year in full. Revenue for the full year grew by 6% and good momentum continued into the final quarter.On an adjusted basis operating profit is expected to show a 30% increase on the previous year, exceeding market expectations and demonstrating a year of strong profitable growth.

Telit Communications TCM expects revenue for the year to the end of December to show strong profitable growth Aadjusted operating profit is expected to exceed  market expectations with a rise of some 30% on the previous year. Shareholder approval for the proposed sale of the automotive division is expected to be obtained on the 29th January and completed on the 31st January.The Executive Chairman claims that over the last few months, the Group has delivered double-digit revenue growth, and improved profitability over the year. The financial performance is expected to be improved further in 2019.

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Ian Pollard – Momentous year for Cineworld #CINE

Cineworld CINE found 2017 to be not only exciting but also the most momentous since its foundation in 1995 as it once again produced record results and took the first steps towards turning itself into the second largest cinema chain in the world with the acquisition of Regal entertainment Group for $3.4bn. This was a transformational acquisition, now completed, which gave it a total of over 9,500 screens. Profit before tax rose by 22.7% and basic earnings per share by 18.7% enabling the full year cash dividend to be increased by 14.5% plus a final rights adjusted dividend of 3.1p er share.

Savills plc SVS delivered a strong and improved performance in 2017 and is raising dividends for the year by a total of 4% to to 30.2p per share. Group revenue rose by 11% and on a statutory basis profit before tax increased by 13% and basic earnings per share by 20%. The strength is attributed  to the resilience of the residential market, geographical diversity and strength in key commercial markets.

Kier Group KIE is increasing its interim dividend for the six months to the 31sr December by 2% after an 8% rise in revenue, 3% in basic earnings per share and 4% in profit before tax.  The good performance is claimed to reflect the strength of the business model coupled with financial and operational discipline. Double digit profit growth is expected for 2018.

PZ Cussons PZC Following January’s announcement that first half trading performance in the UK and Nigeria had been constrained, things have not improved and a warning has had to be issued that full year profit will now fall short of expectations and profit before tax will be in the region of 80 to 85 million pounds. Despite the continuation of low consumer confidence and high competition in most of the company’s markets, a return to profitable growth is forecast for the following year.

Portmeirion Group PMP produced its ninth consecutive year of  record group revenue in the year to 31st December and is celebrating with an increase of 7.5% in full year dividends. Profit before tax rose by 13%, basic earnings per share by by 9.2% and  revenue. by 10.6%. The success is attributed to strong growth and diversification in export markets.

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Ian Pollard – Savills becomes a ‘Residential Transaction Business Operator’.

Savills plc SVS no longer has estate agencies in the UK. They have gone posh, moved up market and now describe themselves as operating residential transaction businesses. That really will send the share price rocketing. Whatever they call themselves they have experienced a stronger than anticipated finish to the year, with the UK proving resilient in achieving year on year revenue growth in challenging markets. Asia. Pacific and continental European transactional businesses have performed ahead of expectations  and underlying results for the year to 31st December will be ahead of previous expectations.

Dunelm Group DNLM Quarter 2 and second half sales provide further evidence of the rise and rise of online sales and the decline and fall of old fashioned store sales. Dunelm continued to gain market share in the six months to the 30th December with total revenue rising by 13.6% in the second quarter and 18.4% over the half year. The star performer was however like for like online sales with rises of 30.5% and 36.8% respectively, compared to a lowly 1.1% for quarter two like for like store sales. The writing is well and truly on the wall, with online sales now accounting for 16% of total sales.

JD Sports Fashion JD Headline profit before tax for the year to the 3rd February will now be about 300m., slighty above previous expectations. Positive levels of performance have continued throughout the second half and like for like store sales, including Europe have grown by 3.3%, with further growth coming from online sales and  expansion in overseas selling space.

Greggs plc GRG Fourth quarter trading was particularly favourable and provided the 17th consecutive quarter of like for like sales growth. Like for like sales in company managed shops rose by 3.7%. As at the 31st December Greggs had 1854 shops open and will increase the rate new shop openings in 2018 from last years 131. Industry wide cost pressure are expected to ease in 2018 but the customer environment is still seen as uncertain and emphasis will continue to be placed on what the company describes as providing outstanding customer value.

1PM PLC OPM Group revenue for the six months to the 30th November rose by 74% and profit before tax by 77% of which 34% was organic, as the group’s stated strategy proved to be successful.

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Redrow Expects “At Least” 22% Rise In Profit Before Tax

Redrow RDW as a result of its record order book, trading and performance in the second half of the current year continues to be robust and has enabled the company to increase its average selling prices more, or as they put it, “better” than expected. Profit before tax for the year to the end of June is now expected to increase by at least 22% to £306m.

Kingfisher KGF is increasing its total dividend for the year to 31st January by 3%, after sales and profit growth turned it into an important and productive year. Underlying profit before tax rose by 14.7%, adjusted sales were up by by 1.7%,  leaving group results ahead on all key metrics.

Savills pls SVS delivered another record performance in 2016, including what it describes as a highly resilient performance in the UK .Getting down to the nitty gritty though group profit before tax rose by only 1% after a 52% rise in continental Europe. Underlying basic earnings per share were up by 15% and total dividends for the year are increased by 12% to 29p per share, compared to 26p in 2015.

XAAR plc XAR Revenue for the year to the end of December was up by some 3% and profit before tax rose from £13.6m to £17.9m. Ceramic tile sales were disappointing.  Total dividends for the year have been increased from 9.45 p. per share to 10p.

Cello Group CLL Managed to turn earnings per share of 3.54p for 2015 into a loss of 3.23p per share for 2016. Revenue for the year to the end of December rose by 5.4% and like for like gross profit  grew “robustly” by 5.9%.  Dividends for the year grew even more robustly with a rise of 18.9% but headline profit before tax less so with a mere 0.8% rise. However a good start has been made to 2017.

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