B&M (BME), Ocado (OCDO), Bloomsbury Publishing (BMY), Rio Tinto (RIO) and Chaarat Gold (CGH)
Like-for-like sales at B&M’s (BME) UK stores fell by 5.1 per cent between April and June as a result of “unseasonal weather”, the timing of Easter and an “exceptionally strong” performance in 2023.
Total revenue – which includes new openings, Heron Foods and B&M’s French business – edged up by 2.4 per cent at constant currency. The group opened 19 new UK stores in the period and is on track to open 45 by the end of the year. All new stores are performing ahead of expectations, according to management.
Broker Peel Hunt said bearish investors were expecting a “bloodbath” today, but that like-for-like growth was in fact “perfectly acceptable”. Shares rose by 2 per cent in early trading. JS
Read more: B&M struggles to find the right kind of growth
Ocado raises guidance
Ocado (OCDO) shares were up 14 per cent in early trading after the grocery tech business increased its annual guidance and cut its half-year loss, but they have been typically volatile this week after they plunged yesterday because of a brutal analyst note.
For the 26 weeks to 2 June, the technology solutions business drove revenue up 12.6 per cent to £1.54bn. The statutory pre-tax loss narrowed from £290mn to £154mn. Management now expects underlying cash outflow to improve by £150mn this year, rather than the £100mn previously guided. It also guided that the technology solutions cash profit margin would be in the mid-teens this year, up from the previous more than 10 per cent position.
The results came after the shares fell 11 per cent yesterday when broker Bernstein cut its target price from 1,000p to 260p. Analyst William Woods said the business “will need significant additional capital” over the next few years and urged management to consider “is it right to be a public equity?” CA
Read why we’re bearish on Ocado
Rio Tinto announces mixed first half and Simandou green light
Rio Tinto (RIO) managed to hold on to 2024 guidance for its iron ore operations, but missed Q2 expectations with 80mn tonnes delivered, compared with a consensus forecast of 82mn tonnes. The miss was down to a train derailment last month. The copper unit, the second largest earner behind iron ore, beat expectations with 171,000 tonnes of production in the second quarter. Still, the miner flagged geotechnical issues that will force changes to the mine plan at Kennecott in the US, which could put the full-year guidance at risk. The continued ramp up at Oyu Tolgoi in Mongolia pushed Q2 copper output 18 per cent ahead of the previous quarter.
Rio also announced full regulatory approval for the Simandou iron ore project in Guinea – this will be two massive mines that share rail and port infrastructure. Rio’s block was already moving toward a 2025 production start, but the Chinese and Guinean government approvals now lock in the spending plan set out last year. Rio’s costs are around $6bn, and its share in the iron ore will be around 27mn tonnes by 2028.
The company’s shares were down 3 per cent in morning trading. AH
