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FTSE100 🔺 0.4%
https://www.ig.com/uk/indices/markets-indices/ftse-100
https://baha.com/europe-mostly-up-premarket-with-eyes-on-britain-s/news/details/61764124?internal=1
Holidaymakers going to EU caught out by 10-year-passport rule: Simon Calder, travel correspondent at the Independent says based on his own research "easily a couple of hundred people a day" are being turned away from their flights. - Since Brexit of course
Operational leverage is working as investors and humble analysts hoped for. The balance between those two large numbers - net operating income and core operating costs - continues to look favourable for investors.
FY 2024 could see NOI of £315m and £240m of core operating costs, leaving £75m of pre-tax profits. The proviso is that this excludes variable remuneration and non-recurring items.
Variable remuneration has historically been quite large, e.g. £17m last year and £16m the year before that.
“Non-recurring items” is new: the company previously didn’t exclude this from its headline measure of operating expenses. So that will be something to watch out for. My guess is that the company will want to put redundancy costs in here, to show investors the one-off impact of its recently announced 17% reduction in headcount.
The FY March 2024 results should be very good, although could be impacted by those one-off costs.
The outlook for FY March 2025 should be excellent then, considering the new product launches, the positive momentum being enjoyed, and the lower cost base.
Of course we’ve just had an “ahead of expectations” trading update, which will require estimates to be revised, but I must say that the existing consensus earnings forecasts look very suspicious to me. CMC’s financial results are volatile and could surprise investors in either direction in FY 2025, but I’d say an upside surprise is more likely.
At a market cap of £579m I still view this as offering good value if the company continues to perform well, although I don’t have the same level of slam-dunk conviction as I had at the beginning of the calendar year. The share price has doubled since then:
https://app.stockopedia.com/content/small-cap-value-report-weds-27-mar-2024-smds-fevr-993290?order=createdAt&sort=desc&mode=threaded
SUBSCRIPTION ONLY -hence printout
FTSE100 IS FLAT
https://www.ig.com/uk/indices/markets-indices/ftse-100
https://www.baha.com/Europe-set-to-open-in-the-green-with-BoE-in-focus/news/details/61756110?internal=1
Cocoa prices
Easter eggs 50% more
The expensive ones like Lindt even more
https://www.manchestereveningnews.co.uk/whats-on/shopping/supermarkets-blasted-over-shocking-easter-28863520
FTSE100 🔻0.2%
https://www.ig.com/uk/indices/markets-indices/ftse-100
https://www.baha.com/Europe-mixed-premarket-with-data-in-focus/news/details/61747378?internal=1