BUSINESS LIVE: Marston’s boosted by job cuts; Travis Perkins slashes profit forecast; FirstGroup lifts expectations
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BUSINESS LIVE: Marston’s boosted by job cuts; Travis Perkins slashes profit forecast; FirstGroup lifts expectations
By Live Commentary
Updated:
The FTSE 100 will open at 8am. Among the companies with reports and trading updates today are Travis Perkins, Marston’s, FirstGroup, Brickability, PageGroup, Mitie, Watkin Jones and GSK. Read the Wednesday 11 October Business Live blog below.
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Travis Perkins slashes profit forecast
Travis Perkins has downgraded its annual profit forecast by as much as 27 per cent, with Britain’s biggest supplier of building materials blaming ongoing tough conditions in the new-build housing and renovation markets.
The group said it now expected 2023 adjusted operating profit to be in the range of £175million to £195million, a 12 per cent downgrade from from previous expectations of £240million.
‘Market conditions remain challenging with continued weakness across new build housing and domestic repair, maintenance and improvements,’ chief executive Nick Roberts said.
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Marston’s boosted by job cuts
Marston’s expects operating profits to improve by more than initially forecast in 2024 after the pub operator slashed £5million of costs with job losses earlier this year.
Pub groups in Britain have been grappling with high costs of raw materials, energy and labour as inflation remains stubbornly high. However, costs have started to ease over the past couple of months.
Wolverhampton-based Marston’s, which reported a 10.1 per cent rise in like-for-like sales for the year to the end of December, is targeting an improvement of at least 200 basis points to operating profit margins over the next two-three years.
Of this, 50 basis points has been achieved through the cost reduction.
