The interims season is upon us, which means we will be providing a fair sight more results analyses than I can fit into this briefing. For stories as we publish them, head over to the shares section of our new website, which now brings together results, tip updates and company news in one place.
Among the strategic risks that Domino’s Pizza (DOM) lists towards the bottom of its earnings statements are the following: “failure to respond to and overcome competitive pressures”’; “inability to react to changes in the health debate” and “failure to achieve UK growth through new store openings”.
With everyone from start-ups to tech giants like Uber muscling in on food delivery, and offering a wide range of choice, the first is a live issue. The second is never far away. And the third was a discussion point for its half-year results, as splitting territories weighed on like-for-like sales. Click here for our take. A fourth is the confidence of the UK consumer; that’s a healthy debate at least.
Subprime lender Provident Financial (PFG) is having its own troubles. A disruptive transition for its home credit business made for some ugly numbers in its half-year results, but the concerns around the stock also include the slower growth of its credit card business Vanquis Bank, and the potential fallout from a turn in the credit cycle. Click here for our view.
The Bank of England’s executive director for financial stability, Alex Brazier, warned this week in a speech at the University of Liverpool that lenders could be entering a “spiral of complacency” given the rise in consumer debt. “Lending standards can go from responsible to reckless very quickly,” he said. Subprime customers, so the argument goes, are by their nature outside of the normal rising rate squeeze. But a crunch in motor finance and credit cards would put a dampener on some of Provident’s growth areas.
In the third year of its three-year strategic programme, Informa (INF) is showing the benefits. Continuing a good interims season for the events and business intelligence providers, it has achieved growth across all divisions: click here for that. Compare and contrast with Ascential (ASCL).
We’ve also had half-year results from warehouse owner Segro (SGRO), which delighted the market on Tuesday: click here for those. And recruiter SThree (STHR), which continues the sector trend of overseas good, domestic not so much. That's here.
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