Half year numbers were out from Rolls Royce this morning with headlines including an underlying profit of £1.1bn and underlying margins of 14%, both of which were significantly higher than expected despite ongoing supply chain challenges. Management have raised full year revenue guidance as a result and now expect to post an underlying profit of between £2.1bn and £2.3bn. Dividends are also being reinstated and the market is taking all of this as being good news. Rolls Royce shares were up 9% in early trade, testing fresh all time highs.
The fashion retailer Next issued a Q2 trading statement today, which again impressed the market. Expectations had been that a strong comparative and poor weather earlier this summer would combine to create a rather downbeat set of numbers, but full price sales for the quarter were up 3.2% resulting in full year profit guidance being upgraded by £20m. Cost savings in logistics are also helping bolster the performance. The Next share price was up 754p or 8.31% just over an hour into the day.
Eastern Europe’s leading ultra low cost airline Wizz Air published its Q1 update this morning but markets were struggling to find much to love in the numbers. Despite a sharp expansion in the fleet size, ongoing engine trouble has been taking a toll and the airline has now cut its forecast net income for the year by more than a quarter. Exceptional items hammered operating profits which came in at €44.6m against a reported analyst consensus of €144.3m. The market reacted accordingly, sending the Wizz Air share price down by more than 15%.
Headlines we expect on Friday
International Consolidated Airlines Group Interim Results
This time last year H1 Revenue €13.58bn, Post-tax profit €921m
Virgin Money Trading Update Trading Update
This time last year Net interest margin 1.93%, Mortgage balance £57.5bn, Impairment charge £55m
