Despite the pessimism surrounding the UK, a wide range of companies have delivered positive trading updates. Centrica has reaped the benefit of recent skyhigh gas prices as it reported half-year profits have risen by almost 10 times to £969m. Shares in Rolls Royce surged after it said its turnaround plan is working well and it continues to benefit from the resumption of air travel following Covid.
Companies including BT, Moneysupermarket, Lloyds, Barclays, GlaxoSmithKline, Unilever, Reckitt Benckiser, Foxtons and Frasers Group all reported revenue and profits above forecast. Rising rates have raised bank profits, while the rising cost of living has increased the use of comparison websites. Rising London rents means revenues from Foxton’s rental division have offset the drop in sales. Even companies without favourable trading conditions are beating expectations. Frasers (the owner of Sports Direct and Evans Cycles) reported annual profits are up 40% as younger consumers are happy to pay for premium brands.
For the following stories, please click on this link*
- UK: Improved inflation welcomed by markets, but it is too early to say it is under control
- CHINA: Slowdown adds to speculation of additional stimulus
- Commodities: Russian aggression still has potential to drive prices
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