Companies roundup: Astra takes on Novo & Taylor Wimpey

Taylor Wimpey posts bullish profit guidance

Taylor Wimpey (TW.) has forecast a full-year profit at the top end of its guidance following a better-than-expected quarter for the housing market, which is currently in a slump due to high interest rates.

The FTSE 100 housebuilder posted flat cancellation rates for the year to date compared with last year and anticipates operating profit to be around £470mn rather than nearer to £440mn, but warned that "the market backdrop remains uncertain". Shares rose over 2 per cent in early trading.

The update comes after Halifax and Nationwide recorded an unexpected bump in house prices for October. In September, Halifax said house prices had "proven more resilient than expected so far this year". ML

Flutter Entertainment shares slide as it trims non-US guidance

Flutter Entertainment (FLTR) shares plunged by 10 per cent in early trading after the gambling operator said it expects annual non-US cash profits to be at the bottom of its guidance range after being impacted by unfavourable sports results and foreign exchange movements. In the third quarter, gambler friendly results dragged sports revenue down by 2 per cent to £1.12bn while gaming revenue was up 22 per cent to £914mn as US brand FanDuel took market share and grew sales by 52 per cent on a constant currency basis.

The US is now the company’s revenue driver and management said that it expects an additional listing of its shares in New York in the first quarter of next year. CA

Wizz reports turnaround in profit

Wizz Air (WIZZ) reported a return to profit following strong growth in the number of passengers carried and the prices charged per seat.

Revenue in the first half grew by 39 per cent after passenger numbers increased by a quarter, with ticket revenues up 17 per cent. This allowed the company to make a pre-tax profit of €450mn (£391mn), compared with a loss of €390mn in the same period last year.

Despite this, the company’s share price fell back by 5 per cent after it narrowed its full-year profit guidance to the downside - to €350mn-€400mn, from €350mn-€450mn given in August.

The company expects that it will need to ground 45 aircraft using Pratt & Whitney’s GTF engine by the end of the financial year, although it has “secured a comprehensive compensation package” from the manufacturer and capacity will still be 20 per cent higher than in the second half of last year. MF

Read why we’re bearish on Wizz Air

WH Smith’s earnings soar on travel recovery

WH Smith’s (SMWH) pre-tax profits surged by 75 per cent to £110mn in the year to 31 August as the company reaped the benefits of the resurgence in travel demand. Travel revenues boomed by 43 per cent to over £1.3bn as recovering air passenger numbers meant more consumers popped into the company’s airport stores. On the other hand, high street revenues were down 1 per cent to £469mn after 13 stores were closed in the year. Management said it plans to invest around £140mn of capex this year, “which will drive further growth”. CA

National Grid revenue and costs up

National Grid (NG.) has boosted its revenue outlook for its electricity transmission business for the year by £260mn, although costs will eat into the bottom line at the same time. The division saw a 70 per cent rise in operating profit in the first half, to £838mn, while National Grid’s operating profits from serving as UK energy system operator surged by over 200 per cent to £443mn. The government has legislated a new independent operator which will come into being next year.

National Grid reported a first-half operating profit of £1.9bn, down 11 per cent on last year. Investors will get a 19.4p interim dividend, up 9 per cent on last year.

National Grid chief executive John Pettigrew said further government work was needed in the power space. “And whilst we're pleased to see momentum around policy reform on both sides of the Atlantic, we now look forward to seeing announcements and consultations translated into decisions and action in order to deliver the energy transition,” he said. AH

Read more: National Grid's dividend powers on

S4 Capital cuts guidance again

Shares in S4 Capital (SFOR) tumbled by 18 per cent this morning after the advertising agency downgraded its outlook for a third time.

The group’s full-year operational Ebitda margin is now expected to be between 10 and 11 per cent, compared with previous forecasts of 12-13.5 per cent and original guidance of 14.5-15.5 per cent. This compares with an operational Ebitda margin of 13.9 per cent in 2022. Like-for-like net revenue is also due to be down year-on-year.

Revenue fell by 18 per cent in the third quarter as challenging trading conditions “intensified”. The content division was worst hit, as demand – particularly from the technology sector and regional clients – weakened. JS

Videndum shares bounce as Hollywood strike ends

Shares in Videndum (VID) jumped by 11 per cent after the Hollywood actors’ union announced the end of their strike.

The company also appointed Stephen Harris as its next chair. Harris is currently chief executive of Bodycote (BOY) but is set to retire in the first half of next year after leading a turnaround of the heat treatment specialist. He will take charge of Videndum’s board after Ian McHoul steps back following next year’s annual general meeting.

Videndum’s shares have been hammered this year following strikes by writers and actors in Hollywood, which curtailed demand for its video equipment. The shares fell further in September after it warned that it might need to raise equity to shore up its balance sheet.

Even after this morning’s bounce, Videndum’s shares are down by 69 per cent since the start of the year. MF

IMI nudges up full-year guidance

Building products group IMI (IMI) nudged up its full-year earnings expectations after reporting decent third quarter revenue growth and an improvement in its profit margin.

The company lifted its adjusted earnings per share guidance to 114p-118p, from 112p-117p at the end of July, after third quarter organic revenue rose by 3 per cent, “with margins also improving”.

IMI’s shares, which have gained by around 14 per cent so far this year, fell back by 3 per cent. MF

Growth softens at Domino’s Pizza

Domino’s Pizza (DOM) shares fell by 7 per cent in early trading after like-for-like (LFL) sales growth softened at the dough roller and consumers made fewer orders. LFL sales rose by 3.7 per cent in the third quarter, below the 8.6 per cent uplift recorded in the second quarter. Order numbers fell by 1 per cent to 16.7mn, with delivery orders down by more than 6 per cent “due to softer demand in the wider delivery market”. Management said that it expects that more than 60 new stores will be opened this year and reiterated its annual underlying cash profits guidance range of £132mn-£138mn. CA

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Companies roundup: Astra takes on Novo & Taylor Wimpey

Taylor Wimpey posts bullish profit guidance

Flutter Entertainment shares slide as it trims non-US guidance

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