Hope you’ve had a good week. Here is a quick roundup of just some of the bigger news stories from this week.
Shares in Fevertree (LON:FEVR) plummeted when it revealed Christmas trading was “subdued.” The company now estimates that 2019 sales rose 10% to £260.5m. This was lower than expected due to a weaker festive season. Growth was driven by the US, Europe and Rest of World (RoW), whilst UK sales – still by far the biggest market – fell 1%. Full year earnings per share are expected to decline by 5%, as increased investment impact margins.
Dixons Carphone (LON: DC), which owns Currys PC World, rather embarrassingly had to reissue its Christmas trading figures to say sales went down, not up over the period. It issued a revised statement for the last 10 weeks of the year, saying sales had fallen by 2% rather than risen by 2%. A rise in sales of supersize 65-inch TVs could not outpace a sharp fall in Dixons Carphone’s struggling mobile phone business, where revenue fell 9%.
There was another embarrassment for struggling fashion company Ted Baker (LON:TED). It admitted that an accounting error was twice as big as initially thought, leaving it with a £58m hole in its balance sheet. Last month it said the figure was up to £25m. The new estimate comes after a review by accountants Deloitte.
Paypoint (LON:PAY) reported a 4.2% rise in the group’s underlying net revenue to £32.7 million for the three months ended December 31, 2019. The Group’s latest trading update also announced strong growth in its service fee to £3.5 million, driven by the roll out of PayPoint One to more than 16,000 sites. PayPoint said its overall retail network reduced to 27,832 sites from 28,366 sites quarter-on-quarter in the UK, as expected, and as a result of its legacy terminal sunset programme.
Marston’s PLC (LON:MARS) shares fell after the brewer and landlord sold £60m worth of pubs in the past three and a half months and revealed the expected impact of the government’s new minimum wage from April. The FTSE 250 group said it grew total like-for-like sales 1% in the 16 weeks to 18 January but said the new minimum wage would increase costs by around £2-3m in the second half of the year.
Hope your investments are going strong so far this year. Certainly has been a strong market overall since the election, although this week was a little rockier. Wishing you all the best!
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