Entertainment One boosted by Peppa Pig again
Entertainment company Entertainment One (LON:ETO) saw strong growth across all geographic areas, driven largely by its popular Peppa Pig brand.
Full-year revenue from its family and brands division, including the popular cartoon pig, rose by 56 percent to £138.6 million. Group adjusted profit before tax is up 11 percent to £144 million, with adjusted diluted earnings per share up by 10 percent.
Chief executive Darren Throop said it had been “a strong year for the Group”, combining “Film and Television operations into the Film, Television and Digital Division for FY19, completed the acquisition of the remaining stake in The Mark Gordon Company and continued the reshaping of our Film business.”
“All of these initiatives sharpen our operational focus and facilitate success in today’s evolving entertainment market.”
Peppa Pig’s popularity has grown across China and the US, where is continues to be a key market due to its appearance on the Nickelodeon channel.
Entertainment One said it expects Toys R Us store closures in the US and UK may have “some impact for its brands in the short term” but “this impact is not anticipated to be significant”.
Shares in Entertainment One are broadly flat, up 0.17 percent at 289.50 (0924GMT).
Halfords shares sink 10pc after reporting flat profits
Halfords (LON:HFD) shares plunged over 10 percent on Tuesday morning, after the group announced profit would be flat for the full year.
The group posted figures in line with full year numbers, with total group revenue up 3.7 percent and 2 percent on a like-for-like basis.
Underlying pre-tax profit came in at £71.6 million, down £3.8 million year-on-year. The group had to absorb around £25 million of additional cost of sales as a result of the weaker pound.
Halfords also announced the appointment of former British Airways boss Keith Williams to replace Dennis Millard, who is retiring after nine years in the role of chairman.
“We anticipate the motoring market will remain robust and continue to see good growth prospects for the cycling market although we do not expect prices to rise in cycling this year as in the previous year,” the group said.
“Given this, the phasing of our remaining FX mitigation actions and decisions to accelerate investment in services and customer capabilities, we currently anticipate FY19 Underlying Profit Before Tax to be broadly in line with FY18.”
Shares in Halfords are currently down 10.28 percent at 348.10 (0910GMT).
Fuel prices hit three year highs
The price of fuel has climbed to its highest level in over three years, increasing pressure on consumers.
Despite a decrease in the disparity between wage growth and inflation, rising oil prices still represent a squeeze on incomes. An increase in oil prices has meant the average price of petrol has risen to 127.22 pence a litre, with diesel up to 129.96 pence a litre. Fuel prices are now at their highest level since December 2014, driven by the US’s withdrawal from the Iran deal as well as renewed tensions in the Middle East. “Things have started to look better for the UK consumer recently, with inflationary pressures easing and real wage growth finally started picking up,” said George Salmon, equity analyst at Hargreaves Lansdown, told the BBC. “Filling up the tank is a pretty essential expense for most of us, so the average consumer could find there’s a few pounds less in the jar at the end of each month.”Galliford Try hit by delays at Aberdeen project
Homebuilder Galliford Try (LON:GFRD) said full year results would still be in line with expectations, despite delays on one of its major projects that is likely to result in increased cost pressure on the company.
The group warned that costs had gone up on its Aberdeen Western Peripheral Route project, as a result of delays from bad weather. It is now likely to increase the exceptional charge in the current year.
“The amount will depend upon progress recovered through the summer, and is expected to be lower than the charge (£25m) taken in the first half. We are continuing to discuss several significant claims. Practical completion of the project is anticipated this summer,” the group said.
The group were also hit by falling sales at its Linden project, which recorded £1.18 billion of sales reserved, contracted or completed, of which £904m was for the current financial year through June. This compares to comparative figures in the previous financial year of £1.17 billion and £915 million respectively.
Full-year pre-tax profits are still likely to be within the range of analysts’ forecasts however, between £138 million and £146 million.
“The Group continues to deliver a strong operational and financial performance and is making good progress against its growth plans to 2021,” CEO Peter Truscott said.
“Following the successful completion of the recent rights issue the Group is well capitalised with a strengthened balance sheet to support our planned growth.”
Shares in Galliford Try are currently down 0.80 percent at 964.75 (0845GMT).
Cranswick shares up on buoyant demand for sausages
Shares in meat supplier Cranswick (LON:CWK) rose 9 percent on Tuesday, after posting a 14 percent rise in profit over the year.
Pre-tax profit rose £88 million, with revenue up 18 percent to £1.46 billion. Pre-tax profit also also shot up 22 percent to £92.4 million, with the group reporting a full-year dividend of 53.7 pence, up 22 percent.
The meat supplier was boosted by strong demand for sausages and bacon, with good revenue streams and falling pig prices boosting margins.
Cranswick confirmed that trading for the current financial year will continue in line with management expectations, with the figures weighted towards the second half.
“The business has continued to make commercial and strategic progress over the past year and the board believes there is a solid platform in place from which to progress further within the pork, poultry and associated categories of the food sector,” the company said.
“The strengths of the company include its long-standing customer relationships, breadth and quality of products, growing export channels and well invested asset infrastructure.”
Shares in Cranswick are currently trading up 8.72 percent at 3,440.00 (0829GMT).
Homeserve shares sink despite increase in profits and revenues
Emergency home repairs group Homeserve (LON:HSV) reported a 25 percent rise in profit on Tuesday, after strong growth in North America, Spain and France.
Pre-tax profit hit £123.3 million, with revenue rising 15 percent to £899.7 million. In North America, operating profit doubled to $64.4 million, with customer numbers up 20 percent. Total customers for the group rose 7 percent to 8.4 million.
“This has been another great year for HomeServe, with record profit growth and another step change in our growth in North America,” founder and chief executive Richard Harpin said.
“In particular, continued strong organic growth is expected in North America, with acquisitions providing opportunities to further accelerate business development across the group,” it said.
The company also reported an increase in its full-year dividend, up 25 percent on-year.
Despite the strong figures, Homeserve shares are currently trading down 3.80 percent at 810.00 (0811GMT).
Greatland Gold shares soar after Black Hills update
Shares in Greatland Gold (LON:GGP) soared on Monday, after the company announced plans to commence exploration efforts at its Black Hills project.
The company confirmed it intends to start exploration at its Black Hills Project in Western Australia after identifying four distinct gold mineralisation zones.
Gervaise Heddle, Chief Executive Officer, commented:
“Our first exploration programme at Black Hills marks another important step for Greatland. Sitting near the 27 million ounce Telfer gold deposit and hosting an equivalent style of mineralisation, Black Hills represents a compelling and high priority exploration opportunity for the Company.
He continued:
“The Black Hills project epitomises our strategy of targeting under-explored areas with great potential. We believe it represents an excellent opportunity for Greatland and we are excited to get started with the exploration programme.”
Back in April, the company also announced plans to commence exploration at a new site in Tansmania at The Australian Firetower Project.
Greatland Gold was founded back in 2005, and has been listed on the junior AIM-market of the London Stock Exchange since 2006.
The company’s current projects include Paterson, Ernest Giles, Bromus, Warrentinna, Firetower and Panorama, focusing primarily upon regions in Australia.Shares in Greatland Gold are trading up 7.27 percent as of 13.52PM (GMT), as the market reacts to the news.
UK house prices: parts of Wales up 10pc while London continues to fall
House prices in the UK have hit record highs, despite a continued slump in London and the South East.
Annual house price inflation in parts of Wales has jumped by ten percent in the year to the end of March, according to the Your Move index.
Prices in the City of London dramatically slumped by 31.4 percent.
The overall decline across London and Wales was 0.1 percent in March.
Oliver Blake, managing director of Your Move said: “There’s a simple explanation for this stellar performance: forestalling.”
“Wales introduced a new land transaction tax in April, starting at a higher base, of £180,000, than stamp duty in England (£125,000) but at a higher rate, particularly for properties priced £400,000 to £925,000, with tax rates at 7.5 percent and 10 percent.
“Anticipating this, buyers have brought forward purchases of high value homes to avoid the new tax, just as they did ahead of the stamp duty hike in April 2016. Consequently, six of the eight most expensive local authority areas in Wales set a new peak price in March. Such high price growth in Wales is likely to prove short-lived.”
Prices in Swansea and Cardiff were up 9.7 percent.
Property expert and Emoov chief executive Russell Quirk believes the numbers for London represent the “fragmented” market in the capital.
“While there is still an appetite amongst London buyers evident by the number of visits to Rightmove, a lack of commitment is resulting in a reduction in the number of sales agreed in the capital.”
“This is hardly surprising when you consider the reality gap between the expectations of stubborn London sellers and the current market climate itself, coupled with a lack of diversity where stock reaching the market is concerned.”
The City of London was the biggest faller in London, followed by Southwark where prices fell 17.5 percent in the year to March.
Marks and Spencer set to announce further store closures
Marks and Spencer (LON:MKS) will announce on Monday which of their stores will be closing, in an effort to restructure its business during a difficult time for the high street.
100 of its stores will be shutting, as disappointing sales and profits at the grocery and retail chain led CEO Steve Rowe to take action. 20 stores have already been closed, causing the loss of 900 jobs, with another 80 set to be announce before its results on Wednesday.
The plan is to cut the amount of floor space dedicated to clothing, one of the biggest drags on performance. Analysts are expecting M&S to report pretax profits of £573 million, down from £614 million in 2017, with clothing and home like-for-like sales are forecast to be down 1.1 percent.
Continued decline could put its position on the FTSE 100 in danger. It has been a blue-chip company since 1984, but may fall into the FTSE 250 in a reshuffle later this week.
Marks and Spencer (LON:MKS) shares are currently trading up 1.51 percent on the news, at 296.10 (0844GMT).
Matchesfashion.com report 44pc sales boost
Fashion retailer Matchesfashion.com announced a 44 percent rise in sales in 2017, after strong growth in the online luxury market.
Operating profit for the full year grew 34 percent to £26 million, with sales hitting £293 million for the 2017 year.
The company are based online and their strategy revolves around reaching customers through the internet.
Chief executive Ulric Jerome, said: “The global online luxury market is seeing strong growth but penetration is still very low, so the opportunity is huge.
“We continue to accelerate profitable growth in our international markets and we see that momentum continuing throughout 2018.”
Last year the husband and wife team who started the business sold a majority stake in the company to Apax partners for £800 million. Tom and Ruth Chapman, its founders, continue to hold minority stakes and have retained advisory roles at the company.