Burberry BRBY claims that its ambitious revenue growth plans are on track with a 4% drop in revenue for the six months to the end of September. Presumably it can find some form of logic in that but if there is it certainly seems to have escaped the CEO who produces a wordy paragraph of what read like vague and empty promises and explanations to justify the company’s performance. True, the second quarter did show some improvement with like for like sales rising by 2%, compared to the first quarters fall of 3%. Wholesale revenue for the half year fell by 14%, demand in the Americas is described as uneven and licensing revenue fell by 54% after the planned expiry of Japanese licences. Digital was one strong point and outperformed in all regions.
Burberry is just the sort of company which was supposed to reap large benefits from the collapse of sterling and is yet more proof, if proof were needed that company’s are failing miserably to take advantage of this so called golden opportunity.
Hays plc HAS shows the UK slumping whilst the rest of the world gets on with making itself prosperous.Whilst Asia Pacific grew by 30% in the quarter to the end of September and Continental Europe and the Rest Of the World by 33%, poor old UK & Ireland actually fell by 10%. As an example of how bad this is, France managed to produce 22% growth. recruitment is one of the main bel lweather of any economy. On these figures the UK’s bell is badly cracked. Hays claims it has a world class management team in the UK and it is leading the company through uncertain times.
Utilitywise UTW is increasing its dividend by 30% for the year to the end of July, after a 22% rise in revenue led an increase of 7% in profit before tax. Net debt was down by 97%. Customer numbers were up by 23% in the UK and Ireland and by 49% internationally.
Gear4Music G4M Strong first half revenue and profit growth seems set to be followed by a strong Christmas trading period and the board believes that full year results will now be ahead of its previous expectations.Revenue for the half year to the end of August rose by 73% and gross profit by by 74%. Adjusted profit before tax came in at £966,000 after last years first half loss of £217,000. Europe produced particularly strong growth, especially in July and August and now accounts for nearly 40% of sales.
Marshall Motor Holdings MMH claims it knows of no reason for recent share price movements, other than general speculation about the possible consequence of Brexit. Since the end of June the company has enjoyed material growth in revenue and profits, following two acquisitions and September produced significant like for like new vehicle sales growth, whilst after sales revenue also grew strongly.