Shares in electrical retailer AO jumped to the top of the FTSE250 off the back of this morning’s well-received interim results announcement. The headline figures included 6% revenue growth and an 11% increase in operating profits whilst gross margins advanced by just under 1% as well. String free cash flow has bolstered reserves and there’s optimism over the outlook too, not least given the recent acquisition of Music Magpie. Full year pre-tax profit forecasts have been revised higher by £3m and management noted that trade early in the second half was also performing well. AO World shares were trading almost 3% higher shortly after the open.
Interim results from the motoring and cycling product retailer were issued today showing revenues as broadly flat but margin improvement offered investors something to cheer, attributed to price optimisation and the deployment of the company’s Better Buying programme. Cost savings measures have also been yielding results, although the note highlights that changes in the budget will add £23m to the wage bill, some of which had admittedly been accounted for. The near-term outlook remains uncertain although consensus estimates for the full year performance remain in scope. Halfords share price was 15% higher at 9am.
It’s looking to be another good day for small cap green energy solutions provider Quadrise after they made a second partnership announcement in as many days. On Monday the company advised it had struck a partnership agreement with Auramarine to leverage the abilities of both firms, whilst today’s news is for a project with shipping line MSC and Cargill. This will see Quadrise biofuels produced at a facility in Antwerp before being sold by Cargill to MSC to allow sea trials to commence. Successful conclusion of the trials will see the three parties enter into a long-term commercial agreement. The Quadrise share price was trading up 56% by 9am.
Headlines we expect on Wednesday
Mitchells & Butler Final Results
This time last year Revenue £2.5bn, Operating profit £98m, Net debt £1.17bn
Pets at Home Interim Results
This time last year Consumer revenue £1bn, 7.8m active VIP members, underlying pre-tax profit £47.8m
