2.05pm: Castings jumps on encouraging trading news
Castings PLC (LSE:CGS), the iron casting and machining firm, saw its shares jump after it reported underlying demand for heavy trucks remained strong during the six months to 30 September.
It said it has seen a more "consistent conversion of forward schedules in the period." adding "Input price changes continue to be passed onto our customers through both established escalators and additional price increases."
"The higher unit cost for power is being surcharged to our customers immediately and will therefore increase revenue in the second half of the year. This should not adversely affect group profit as it is a pass-through of a direct cost increase" the company added.
Shares spiked 13% higher on the news..
9.05am: Superdry jumps after return to profit
Superdry PLC (LSE:SDRY) (Superdry PLC (LSE:SDRY)) saw its shares bounce nearly 10% to 112p after reporting a return to profit in the year to April 30 although it remained cautious in the near term citing economic factors including high inflation and the impact of these on consumer spending.
Superdry made an adjusted profit before tax of £21.9mln compared to a loss of £12.6mln in the previous year, revenues rose 9.6% to £609.6mln.
The retailer said it had made an encouraging start to this financial year but forecast profit would fall to between £10mln and £20mln pounds, as cost inflation puts pressure on margins.
Broker Liberum said it would leave its forecasts unchanged and reiterated a buy rating.
With a price target of 500p the broker said “The shares remain too cheap.”
8.23am: Downgrades follow profits warning from Marshalls
Marshalls PLC (LSE:MSLH) tumbled 22% after it warned that full-year profits will be slightly below market forecasts following a drop in demand for landscaping products from struggling households hit by soaring energy prices and inflation.
In a trading statement, Marshalls said it “now anticipates that the outturn for the group as a whole will be slightly below the bottom end of the current range of market expectations” of profits of £95.1mln-£101.0mln.
In reaction Peel Hunt lowered its current year pre-tax profit forecast £91mln and its full year 2023 estimate to £100mln from £123mln.
The broker said ."The key softness has come in the Landscape division, which has seen LFL sales go from +1% to -16% in 3Q with September worse than August.".
Peel Hunt also slashed its price target to 470p from 830p but kept its buy rating.