The food product to fashion business ABF may have hoped to generate some enthusiasm amongst investors this morning after confirming it would spin out Primark into a separate entity but the market was clearly more focused on the interim results. It is anticipated that both entities will qualify for the FTSE-100 on the demerger completes with a target of late next year, but on a shorter horizon falling sugar prices are set to take a toll, whilst heavy investment into the Primark business has also been costly. Revenues are broadly flat but adjusted pre tax profits dropped 19%. This was expected and management are eyeing a recovery in H2, but uncertainty over the Middle East conflict is in evidence, too. The Associated British Foods share price was down 5% shortly after the open.
Global consumer brands and e-commerce group THG issued a Q1 trading statement this morning with the FTSE-250 listed company painting an upbeat picture. It recorded the best quarter of revenue growth since 2021, up 7% and is seeing only a limited impact from the situation in the Middle East, something management note can be navigated following that good start to the year. With this momentum, full year guidance has been reiterated and the THG share price was 7% higher in early trade.
The house builders have been painting a mixed picture of late and this morning’s trading update from Crest Nicholson underlines the divergence that’s apparent. The company has dialled down full year guidance materially as macroeconomic uncertainty, higher borrowing costs and weaker consumer confidence all combining to take a toll. Expectations are that the challenges will persist for at least six months, with the number of units to be sold this financial year being reduced by around 10%, whilst land sales are also set to be hit. Cash preservation is high on the agenda as covenants reach being breached, so could that be a drag on dividends, too? The Crest Nicholson share price was down 39% by 8.45am.
Most read news on Investegate this morning
Outcome of its review of Group structure - - Associated British Foods (ABF)
Trading Update - - Crest Nicholson Holdings (CRST)
Avacta data AACR underline AVA6103 profile - - Avacta Group (AVCT)
