Latest news with #MarkCrouch
CNBC
14 hours ago
- Business
- CNBC
UK's best-loved sausage roll seller plunges 15% as heatwave hurts sales
U.K. high-street baker Greggs, famed for its sausage rolls and hot savoury bakes, warned on Wednesday that sales in June were hit by unusually hot weather in June. Shares of the bakery chain plunged around 15% on Wednesday after the company issued a trading update in which it said unseasonably hot weather in the U.K. had hit customer footfall and dented like-for-like sales in June. Like-for-like sales grew by 2.6% with total sales hitting £1.03 billion ($1.4 billion) in the first half of 2025, up from £961 in the same period last year, but the company said that like-for-like sales last month — the second-hottest June on record in the U.K. — were impacted "as very high temperatures affected the U.K., increasing demand for cold drinks but reducing our overall footfall." The baker has proved a hit with British consumers with its sausage rolls, chicken bakes, jam donuts and new Mac & Cheese offering — which went "viral" on social media — becoming best-sellers. While it did not specify whether sales of its hot bakes were particularly affected by the recent heatwave weather, with temperatures soaring to around 33 degrees Celsius (91 Fahrenheit) in the south of the country, British buyers likely opted for cooler offerings. Greggs is expected to provide more specific detail on what sales were affected when it releases its 2025 interim results at the end of July. However, it warned on Wednesday that "in light of the current trading conditions" full-year operating profit "could be modestly below that achieved in 2024." The company is looking to continue an expansion drive, however, saying it remained confident in achieving 140 to 150 net openings for the full year. "Greggs might be feeling the heat, but not in the way it hoped," Mark Crouch, market analyst for eToro, said in emailed comments as the company's share price tanked on Wednesday. "For a brand that's built its success on affordability and convenience, a dip in demand raises eyebrows, especially when footfall should be strong," he said. "Sure, it's harder to sell a hot sausage roll in a heatwave, but a stretched consumer may be part of the bigger picture. Inflation may be easing, but wallets are still under pressure, and Greggs' value proposition may be losing a bit of its bite," Crouch added.
Yahoo
25-06-2025
- Business
- Yahoo
Babcock shares surge 13% on stunning FY update! Can they keep climbing?
For years, Babcock International (BAB.L) shares were one of the laggards of the UK defence sector. Contract delays, cost overruns, high debts and accounting issues meant it significantly trailed the likes of BAE Systems (BA.L) and Rolls-Royce (RR.L). Yet while risks remain — it booked another £90m cost overrun provision on a Royal Navy contract — the FTSE 100 company looks a very different beast following heavy restructuring. Babcock's share price has rocketed 120% over the past year, giving it a place in the prestigious Footsie blue-chip index. Given that global defence spending's tipped to continue soaring, can the defence giant keep up its recent impressive momentum? Its share price was continuing to climb after the release of blowout full-year financials on Wednesday (25 June). They revealed a 10% rise in revenues — or 11% on an organic basis — which hit £4.83bn in the 12 months to March. Babcock's underlying profit margin improved to 7.5% from 5.4% previously. Underlying operating profit surged 53%, to £362.9m, even after accounting for that £90m provision related to its Type 31 frigate programme. On a statutory basis, profits were up 51% at £363.9m. Underlying free cash flow was £153.4m, down from £160.4m in fiscal 2024. But net debt still dropped more than £62m year on year, to £373.3m, pulling down Babcock's net-debt-to-EBITDA ratio to 0.3 from 0.8 previously. This led the company to hike the full-year dividend 30% to 6.5p per share. It also plans to repurchase £200m worth of shares this year, the first buyback in its history. Today's results show that Babcock's thriving in a market that's growing at a rate not seen since for many years. As the firm's chief executive David Lockwood puts it: 'This is a new era for defence. There is increasing recognition of the need to invest in defence capability and energy security, both to safeguard populations and to drive economic growth.' In acknowledgement of this, Babcock's also raised its medium-term sales and margin guidance. It now expects to achieve average mid-single-digit revenue growth, and an underlying operating margin of 'at least' 9%. This is tipped to rise to 8% in financial 2026, a year ahead of schedule. Analyst Mark Crouch of eToro also commented: 'With Babcock's core income derived from long-term government contracts in naval, nuclear, and aerospace defence, the company is well-positioned to capitalise on what looks set to be a sustained period of investment.' The shares soared 13% on Wednesday's update, taking its forward price-to-earnings (P/E) ratio to 22.3 times. This is substantially above a reading of 12-13 times it was trading on just a year ago. As a consequence, it'll have to keep performing strongly lest it experiences a potential share price correction. And there are risks to its impressive recent momentum, from prolonged cost overruns on key contracts, to broader supply chain issues and competitive pressures facing the broader defence industry. Yet it's important to note that Babcock's still cheaper than many of its industry peers. BAE Systems and Rolls-Royce's corresponding P/E ratios are higher at 25.5 times and 38.1 times, respectively. On balance, I think Babcock's a top stock to consider in the current climate, with fresh price gains very possible. The post Babcock shares surge 13% on stunning FY update! Can they keep climbing? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended BAE Systems and Rolls-Royce Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Rhyl Journal
18-06-2025
- Business
- Rhyl Journal
Speedy Hire warns over ‘challenging' conditions amid depot closures
Shares in the equipment hire firm dropped on Wednesday morning as it also reported weaker revenues and swung to a loss for the past year. The Merseyside-based business said it was impacted by 'challenging market conditions' after the Government delayed spending on major infrastructure projects, such as Network Rail's development programme. Speedy Hire said these challenges underpin its commitment to its accelerated transformation plan in order to return to growth. As part of its turnaround efforts, the company said it shut eight of its depots, leading to a reduction in staff numbers. It said its headcount dropped by 74 at the end of March compared with a year earlier. On Wednesday, the company reported that revenues for the year slipped by 1.2% to £416.6 million for the year to March 31. It said its hire business saw sales edge up 0.6% for the year. Meanwhile, the group also swung to a £1.5 million pre-tax loss from a £5.1 million profit a year earlier. It also saw its net debts grow by £11.8 million to £113.1 million. Dan Evans, chief executive of the business, said: 'Despite the macro-economic challenges, we have remained committed to, and in parts accelerated, the implementation of our velocity transformation strategy during its latest phase, which is setting the foundation for growth opportunities for the benefit of our customers and people, whilst maintaining shareholder returns. 'We are focused on what we can control, and we will continue to manage our cost base and balance our investment decisions through the economic cycle. 'Our transformation is key to our business, ensuring service excellence, innovation and ease of transacting for our customers, from an efficient and systems driven operating model.' Mark Crouch, market analyst for EToro, said: 'It's been anything but a smooth ride for Speedy Hire. 'Grappling with spiralling costs and softening demand, the tool and equipment rental firm has found itself under mounting pressure as challenging economic conditions have pushed the business close to its limits. 'With both revenue and profit falling short of estimates, Speedy Hire's full-year results will have done little to shore up investor confidence. 'The broader trend of businesses tightening their belts is already troubling, but Network Rail's decision to delay spending on its £45.4 billion five-year infrastructure programme has delivered yet another hammer blow.'
North Wales Chronicle
18-06-2025
- Business
- North Wales Chronicle
Speedy Hire warns over ‘challenging' conditions amid depot closures
Shares in the equipment hire firm dropped on Wednesday morning as it also reported weaker revenues and swung to a loss for the past year. The Merseyside-based business said it was impacted by 'challenging market conditions' after the Government delayed spending on major infrastructure projects, such as Network Rail's development programme. Speedy Hire said these challenges underpin its commitment to its accelerated transformation plan in order to return to growth. As part of its turnaround efforts, the company said it shut eight of its depots, leading to a reduction in staff numbers. It said its headcount dropped by 74 at the end of March compared with a year earlier. On Wednesday, the company reported that revenues for the year slipped by 1.2% to £416.6 million for the year to March 31. It said its hire business saw sales edge up 0.6% for the year. Meanwhile, the group also swung to a £1.5 million pre-tax loss from a £5.1 million profit a year earlier. It also saw its net debts grow by £11.8 million to £113.1 million. Dan Evans, chief executive of the business, said: 'Despite the macro-economic challenges, we have remained committed to, and in parts accelerated, the implementation of our velocity transformation strategy during its latest phase, which is setting the foundation for growth opportunities for the benefit of our customers and people, whilst maintaining shareholder returns. 'We are focused on what we can control, and we will continue to manage our cost base and balance our investment decisions through the economic cycle. 'Our transformation is key to our business, ensuring service excellence, innovation and ease of transacting for our customers, from an efficient and systems driven operating model.' Mark Crouch, market analyst for EToro, said: 'It's been anything but a smooth ride for Speedy Hire. 'Grappling with spiralling costs and softening demand, the tool and equipment rental firm has found itself under mounting pressure as challenging economic conditions have pushed the business close to its limits. 'With both revenue and profit falling short of estimates, Speedy Hire's full-year results will have done little to shore up investor confidence. 'The broader trend of businesses tightening their belts is already troubling, but Network Rail's decision to delay spending on its £45.4 billion five-year infrastructure programme has delivered yet another hammer blow.'
South Wales Guardian
18-06-2025
- Business
- South Wales Guardian
Speedy Hire warns over ‘challenging' conditions amid depot closures
Shares in the equipment hire firm dropped on Wednesday morning as it also reported weaker revenues and swung to a loss for the past year. The Merseyside-based business said it was impacted by 'challenging market conditions' after the Government delayed spending on major infrastructure projects, such as Network Rail's development programme. Speedy Hire said these challenges underpin its commitment to its accelerated transformation plan in order to return to growth. As part of its turnaround efforts, the company said it shut eight of its depots, leading to a reduction in staff numbers. It said its headcount dropped by 74 at the end of March compared with a year earlier. On Wednesday, the company reported that revenues for the year slipped by 1.2% to £416.6 million for the year to March 31. It said its hire business saw sales edge up 0.6% for the year. Meanwhile, the group also swung to a £1.5 million pre-tax loss from a £5.1 million profit a year earlier. It also saw its net debts grow by £11.8 million to £113.1 million. Dan Evans, chief executive of the business, said: 'Despite the macro-economic challenges, we have remained committed to, and in parts accelerated, the implementation of our velocity transformation strategy during its latest phase, which is setting the foundation for growth opportunities for the benefit of our customers and people, whilst maintaining shareholder returns. 'We are focused on what we can control, and we will continue to manage our cost base and balance our investment decisions through the economic cycle. 'Our transformation is key to our business, ensuring service excellence, innovation and ease of transacting for our customers, from an efficient and systems driven operating model.' Mark Crouch, market analyst for EToro, said: 'It's been anything but a smooth ride for Speedy Hire. 'Grappling with spiralling costs and softening demand, the tool and equipment rental firm has found itself under mounting pressure as challenging economic conditions have pushed the business close to its limits. 'With both revenue and profit falling short of estimates, Speedy Hire's full-year results will have done little to shore up investor confidence. 'The broader trend of businesses tightening their belts is already troubling, but Network Rail's decision to delay spending on its £45.4 billion five-year infrastructure programme has delivered yet another hammer blow.'
