Sainsbury J. SBRY put in a strong performance during the quarter to the 1st July with retail like for like sales growing by 2.3% and grocery sales by an even larger 3%. Online grocery sales surged by 8%. In General merchandising and Clothing, Sainsbury outperformed the market and this was not a one quarter flash in the pan. Clothing sales rose by 7.2% which is enough to make most clothing retailers turn green with envy, especially as this is the third consecutive quarter in which Sainsbury has stormed ahead on clothing sales, the second half of the previous financial year having produced growth of 15.2%.
The secret to the strong overall performance is put down to three simple things, quality, choice and value. Most of the big retailers would claim the same. The difference with Sainsbury is that it is not just more tired old jargon, it is actually giving it to the customers.
Hunting plc HTG expects to remain loss making as a group during the first half but with positive EBITDA. Its Perforating Systems Business has produced results ahead of management expectations, having benefited from the increase in onshore drilling in the US. Elsewhere conditions in Europe and in US offshore drilling remain weak as a result of the continuing law oil price. Hopes for the future hinge at present on US onshore drilling.
Imagination Technologies IMG completed its restructuring in the year to the 30th April and ended up producing a strong set of results. Group revenue rose by 19% and the adjusted loss per share fell from 9.2p to 0.9p whilst on a reported basis the decline was from 29.8p to 10.1p The impact of the dispute with Apple continues.
Apple no doubt, sees no reason why it should seek a resolution. All it has to do is sit tight and wait for the dawn of the new era when it no longer needs the technology provided for so long by Imagination Technologies. And if Apple is wrong on that, it won’t matter a jot by then. The damage will have been done and were Apple not a completely scrupulous and honest company, it would probably be able to pick up the bits and pieces and buy them for next to nothing. Meanwhile Imagination continues preliminary discussions with potential bidders for the whole Group.
600 Group plc SIXH now conducts over 60% of its activities in the US with only 12% of group sales being made to the EU in the year to the 1st April. Profits for the year rose by 79% and earnings per share by 50%. Current order books at the year end were 29% up in industrial lasers and 50% in machine tools compared to the same time last year.
Johnson Services Group JSG has traded very well during the half year to the 30th June and expects that results will be slightly ahead of management expectations.