FirstGroup shares (LON: FGP) soared 8.66% on Tuesday as the group saw passenger numbers recover following the Coronavirus pandemic. An update ahead of the group’s Annual General Meeting revealed stronger than expected financial performance as schools and workplaces return to normal. Bus passengers have returned to 50% of their pre-pandemic levels, which is significantly higher than the 10% levels they were running on since lockdown. “Overall, our divisions have delivered better revenue recovery and strong cost control in the period and the group is now expecting to generate a small adjusted operating profit in the seasonally weaker first half of the financial year. This anticipated result is ahead of our expectations earlier this summer,” said FirstGroup in a statement. “Passengers can be confident that public transport is safe and we are encouraged that activity levels are increasing, especially since the start of the new school year on both sides of the Atlantic. We continue to work with our customers, communities and governments to maintain the availability of our transportation services which are so crucial to the recovery of local economies,” said chief executive Matthew Gregory. “Although the ongoing impact of the pandemic on the Group continues to evolve, clarity is improving over time. We continue to take all necessary action to protect the business and to ensure the Group is in the most robust position possible to deliver on our strategic plans. “As we head into the autumn, our priorities are to continue delivering safe, reliable transport services that meet the changing needs of our customers and communities, and to execute the sale of the North American businesses as expediently as possible and in the best interests of all shareholders,” he added. FirstGroup shares (LON: FGP) are trading +8.07% at 44,20 (1008GMT).

Polypipe shares (LON: PLP) surged 8% after the group released interim results for the six months ending 30 June 2020. The group posted a 93% drop in pre-tax profits, from £31.4m in 2019 to £2.3m. Revenue dropped 22% to £173.6m. “I want to thank all our colleagues for their dedication, hard work and support through what have been unprecedented times for all of us. I am particularly proud of the way they have rallied to support their local communities despite their own circumstances,” said Martin Payne, the group’s chief executive. We manufactured visors and distributed them and other surplus PPE into local NHS and care homes, supported the Nightingale programme and other repurposing of NHS facilities for care and recovery, and contributed to many other local initiatives that have made a difference. The health and wellbeing of our colleagues, our customers and our communities remains an absolute priority, and we will continue to operate to the highest standards possible.”

The Group has traded robustly through the crisis with continued improvement in trading in recent months. The early actions we took to secure liquidity have positioned the Group to be able to capitalise on opportunities as they arise during the recovery, as well as continue investing in new product development in line with our strategy.”

We have a balanced exposure to the different elements of the UK construction market which provides resilience, and strong medium-term growth drivers. Whilst we remain mindful of the various risks to the UK’s economic recovery, I am confident the Group is well positioned for the future,” he added.

Polypipe has said that it will consider paying a final dividend for 2020 in May 2021. This depends on continued performance ahead of the operating scenario set out in May. During the height of the pandemic, 1,771 employees were furloughed. The group has made 104 employees redundant, which is significantly less than the 250 people announced earlier this year. Polypipe shares (LON: PLP) are trading +7.83% at 439,14 (0928GMT).

 

Eve Sleep shares (LON: EVE) were down over 7% on Tuesday’s opening after the group released its latest results. For the six months ended 30 June 2020, revenue fell from £12.9m to £12.2m whilst gross profits increased by 1% to £6.8m. The company expects full-year revenues to reach £22m due to “strong trading momentum”, whilst the group also boasts a year-on-year increase of customers by 7%. “This has been a highly unusual and complex trading period,” said Cheryl Calverley, Eve Sleep’s chief executive. “Eve has benefited significantly from the accelerated switch to online, the temporary closure of high street retailers, and the recent increased consumer investment in the home, which, combined with the hard work on the rebuild strategy, has allowed us to see the fruits of our labour a little sooner than we anticipated. “The focus now is on building towards a longer-term growth plan as we draw closer to our goal of securing a base as a sustainable, profitable business. “We do not expect this to be easy, and 2021 like 2020 may well bring both challenges and opportunities as economies shift, consumers reset and competitors rebuild. “However, I have confidence in our brand, our products, our customer experience and most importantly, our team that we are now well set up to capitalize upon whatever opportunities the next few years may bring,” she added. Eve Sleep shares (LON: EVE) are trading -14.17% at 5,51 (0901GMT).

Ocado shares (LON: OCDO) surged over 5% on Tuesday after the group hailed a “successful switchover” to Marks & Spencer. In the 13 weeks to 30 August, sales at the group reached £587.3m as the company switched from Waitrose to Marks & Spencer. “Our aim is to continue to set the bar as we begin again to welcome new customers who are seeing the benefits of online shopping in ever greater numbers and we remain focused and on track to increase capacity by 40% through to 2021,” said Ocado Retail’s chief executive, Melanie Smith. “As a result, we can now offer customers more choice and better value than ever before, wider ranges than any traditional retailer, and thousands of products that are only available online through Ocado.com.” The joint venture with Marks & Spencer got off to a rocky start after a surge in demand led to customers having their orders cancelled. On the switch, the group said: “the weighting of M&S products in the average Ocado basket is higher than Waitrose prior to the switchover, reflecting positive customer reaction to the addition of M&S to the range”. Online shopping has boomed over lockdown, with Ocado being a clear winner. The group expects strong underlying earnings of £40m this year due to the continued demand. Ocado shares (LON: OCDO) are trading +5.51% at 2.484,74 (0847GMT).    

Mountfield Group shares (LON: MOGP) plunged on Tuesday after the group revealed final results for the year ending 31 December 2019. Shares in the group plummeted 45% on opening after the group’s results reflected “a disappointing year”. Pre-tax profits fell from £1,109,332 to £840,740. The board anticipated a fall in profits due to a reduction in margin on some of the larger contracts. The construction company’s gross margin plunged from 15.5% to 10.4%, while its operating margin fell to 4.1%, from 7.0%. Looking forward, Mountfield expects a negative impact from the Coronavirus pandemic. The group said: “The Board believes that as regards future prospects, the changes resulting from the COVID-19 epidemic are of a fundamental nature and that these changes are likely to have a long term and materially negative impact on the markets in which the Group Companies operate.” “The sharp recession that resulted from the steps taken to limit the spread of the virus has impacted the construction business generally, having had a significant, negative effect on the demand for construction services and in activity levels in the industry generally. The Group has also suffered because both Group Companies offer specialist services to small segments of their respective markets.” Mountfield Group shares (LON: MOGP) are trading -46.21% at 0,51 (0826GMT).