European indices have opened flat on Tuesday, as uncertainty remains among US debt ceiling talks. Investors are also bracing key data, with UK inflation set to be reported tomorrow morning.
As for UK stocks, Topps Tiles reported record half year sales, Sainsbury’s shares were downgraded, and Hilton Foods reported trading in line with expectations.
Topps Tiles announced record half year sales in the 26 weeks to 1 April. Rob Parker, Chief Executive stated: “As we mark our 60th anniversary, we are pleased to be reporting record first half revenue for the Topps Group, reflecting our successful development and diversification as we strengthen our position as the UK’s leading tile specialist.”
- Topps reported record sales of £130.3m, up 9.3% YoY.
- The group saw strong results in online pure play brands, with exceptional sales growth in Pro Tiler Tools.
- Like-for-like sales in the first seven weeks of the second half were up 4.1% and profit is expected to increase marginally.
- Sainsbury’s shares were downgraded on Monday at Citigroup.
- Citi analyst Nick Coulter downgraded Sainsbury’s to Neutral from Buy, with a price target of 295p.
- Coulter cites valuation for the downgrade following the stocks sector outperformance.
Hilton Foods provided a trading update for the period from 2 January. Trading has been in line with the boards expectations with sales ahead of the prior year.
- Revenue in the UK & Ireland is ahead of last year as well as Europe.
- Hilton stated trading since the start of 2023 has been in line with expectations despite the macro-economic environment.
- Recent acquisitions and a continued recovery of its seafood business positions the group well.