The FTSE 100 will open at 8am Companies with trading reports and updates today include Crest Nicholson, Watkin Jones, Henry Boot, Associated British Foods, Boohoo, Quiz and Marston’s. Read the Business Live blog from Tuesday 23 January below.
> If you are using our app or a third-party site, click here to read Business Live
2024 could be “another year of strong recovery” for ABF
Richard Hunter, head of markets at Interactive Investor:
‘At this time, AB Foods expects the impact of events in the Red Sea to have limited disruption to its supply chain and will monitor the situation.
‘Meanwhile, the group has noted that the improved product margin currently enjoyed by Primark should protect the group against the costs of such supply chain disruptions, should they arise.
“Stock levels are currently in a healthy position and the store opening program and incremental improvements to its offering, particularly online, offer a tantalizing glimpse of what could be another year of strong recovery at the retailer, where so many competitors are finding the road increasingly difficult.’
Wall St reaches a new record and the Dow Jones exceeds 38,000 points
Wall Street hit a record high last night amid a tech boom inspired by artificial intelligence.
In a great day for investors, the Dow Jones Industrial Average surpassed 38,000 points for the first time, while the S&P 500 and Nasdaq extended their recent gains.
It came as a strong run among tech giants such as Apple, Google owner Alphabet and Facebook parent Meta propelled indices to set records.
Boohoo CFO resigns
Boohoo’s chief financial officer has resigned with immediate effect, the embattled clothing retailer revealed on Tuesday.
The group has hired former Betfair and Zoopla CFO Stephen Morana as its new CFO, replacing Shaun McCabe.
Boohoo confirmed trading was in line with market expectations and said McCabe’s departure was “by mutual agreement and with immediate effect”.
Primark sales slow down
Primark’s sales growth slowed during the crucial Christmas quarter and its owner, Associated British Foods, warned it could face additional supply costs due to disruption in the Red Sea.
Primark’s like-for-like sales rose 2.1 percent in the 16 weeks to January 6, its first fiscal quarter, a slowdown from 8 percent growth in the previous quarter.
Total sales rose 7.9 percent during the period, which ABF said was marked by “a slow start given unseasonably warm weather and strong Christmas trading.”
AB Foods said it was now more confident Primark would achieve an improved adjusted operating margin in the 2023/24 financial year, driven by further improvement in product gross margin.
“This should protect us well against possible additional supply costs due to disruptions in the Red Sea, should they arise,” he said.
Endeavor presses ahead with ‘serious misconduct’ investigation against ousted former boss
Endeavor said an investigation into its former boss, who was fired due to “serious misconduct,” will be completed “as quickly as possible.”
The gold miner’s board sacked Sebastien de Montessus as chief executive this month amid an investigation into a £4.6m “irregular payment instruction” he issued.
Last week the board stripped the French businessman, who had run the company since 2016, of more than £23m in wages and bonuses.
Housebuilders’ profits take a hit
Housebuilders experienced a difficult 2023 as rising interest rates and a weaker British consumer weighed on property sales, with Crest Nicholson, Henry Boot and Watkin Jones reporting weaker profits on Tuesday.
Crest Nicholson posted an adjusted pre-tax profit for the year to December 31 of £41.4m, up from £137.8m a year earlier and missed guidance of £44m.
Henry Boot said it was on track to deliver a pre-tax profit of £37.2m in 2023, in line with forecasts, up from £45.6m a year earlier.
Watkin Jones slumped to a pre-tax loss of £2.9m, compared with a profit of £48.8m the previous year, although this was largely due to a £35m provision for construction works. building security repair.
Alex Pease, chief executive of Watkin Jones, said: “Significant cost inflation and volatility in the property finance markets meant that FY23 represented a period of unprecedented challenge for the business.”
“However, I am pleased that, in this context, the Group has demonstrated resilience and agility, taking a number of operationally important actions.”
Share or comment on this article: BUSINESS LIVE Housebuilders’ profits suffer; Primark sales slow down; Boohoo CFO resigns
Some links in this article may be affiliate links. If you click on them, we may earn a small commission. That helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.