Whitbread WTB is forced to delve deep into the excuses and jargon drawer to try and explain away its weak UK performance during quarter 3. It concentrates on total sales growth figures which look quite reasonable until one looks at how it fared on a like for like basis.Thus group sales growth came in at 5.6% with the UK performance lagging far behind with a like for like rise at a miserable 0.3%, market conditions being blamed, for continuing to get tougher. Hotels were flat and worst of all at Costa they actually fell by 0.1%. Here blame is allocated to “weak retail market footfall negatively impacting high street stores.” The role of management in all this does not even get a mention. Gone are the days, it would seem when management accepted responsibility for a company’s affairs, provided they have gone well.
Associated British Foods plc ABF For the 16 weeks to the 6th January all businesses delivered revenue sales growth of 4% on a continuing basis although at actual exchange rates this dropped to 3%. Primark sales grew by 7% at constant currency rates, as selling space was increased and Christmas week broke previous records. In grocery, progress has been made in reducing the loss and in sugar the UK crop will be significantly larger but prices will be lower. No views are expressed about the future in 2018.
Halfords HFD expects retail sales for 2018 wil be subdued as the retail environment continues to be difficult but for the 15 weeks to 12th January it enjoyed good trading especially over what it calls “peak including Xmas”. Third quarter sales revenue rose by 2.7% compared to 1.9% for the 41 weeks of the year to date. Car maitenance led the way with with rises of 2.1% whilst he quarter 3 laggard was travel solutions with a drop of 4.1% as against a rise of 4.2% for the year so far. Cycling took a clear lead with a rise of 7.8% for the quarter compared to 3.9% for the year.
Royal Mail RMG delivered a good performance over Xmas and over the 9 months to the 24th December parcel volumes rose by 6% producing a reveue increase of 4%. Addressed letter volume fell by only 5% which was better than expected and overall group revenue was up by 2%.
Eddie Stobart ESL Revenue for the year to 30th November rose by 12% with E commerce sales more than doubling to £103m. Operating margins were strong and improved across all sectors and for the current year growth is ahead of the prior year, again, across all sectors