Proactive Investors - New data on Friday revealed that growth in UK footfall decelerated in February as the cost-of-living crisis continued to bite at consumer demand.
According to data from BRC-Sensormatic IQ, total UK footfall increased by 10.4% in February against the prior year, slowing from an annual increase of 12.5% in January.
February's footfall growth was also worse than the three-month average annual increase of 12.8%.
Helen Dickinson, chief executive of the British Retail Consortium, said: "Growth in footfall slowed this month after the rush of Christmas shopping and January sales. Some people are making fewer visits as the cost of living continues to bear down ahead of the April energy price rise. Despite this, high streets continue to show the biggest improvement compared to last year, when concerns around Covid kept people away from town and city centres."
Compared to pre-pandemic levels, total footfall in February was 8.8% lower than in 2019.
Sales and profits jump at Pearson
A healthy looking set of numbers from educational publisher Pearson PLC.
Sales increased 12% to £3,841mln (2021: £3,428mln) reflecting underlying performance, portfolio changes and currency movements with operating profit £271mln, up from £183mln in 2021.
The increase in 2022 was driven by operating leverage on revenue growth, property cost savings, and a lower restructuring charge, partially offset by inflation and a reduction in other net gains and losses arising from business acquisitions and disposals, the company said.
Earnings per share reached 32.8p, a big jump from 23.5p a year ago while a final dividend of 14.9p gave a total dividend of 21.5p up from 20.5p.
Pearson said it remained on track to deliver around £120mln of cost efficiencies in 2023 which will help accelerate improved margin expectation to 2023 from 2025.
“We are confident of further group underlying sales growth of low to mid-single digit, excluding OPM and the strategic review businesses, with adjusted operating profit and tax in line with current market expectations,” Pearson said.
Pearson continues to expect to achieve mid-single digit underlying revenue 3-year CAGR from 2022 to 2025 and for margins to be mid-teens in the near term.
Rightmove sees no material impact from slowing housing market
Rightmove PLC said on Friday it does not expect to be materially impacted by the slowing property market other in the “most extreme circumstances.”
The online property website made the forecast as it unveiled a 9% increase in full-year revenue in the 12 months to December 31 to £332.6mln from £304.9mln in 2021 as customers continued to upgrade their packages and increase their use of digital products.
Operating profit rose 7% to £241.3mln from £226.1mln a year ago, earnings per share improved to 23.8p from 21.8p and a final dividend of 5.2p was declared (2021: 4.8p) giving a total payout of 8.5p, up from 7.8p in 2021.
Average revenue per advertiser rose 11% to £1,314 per month, the second-highest year ever for absolute ARPA growth, while total membership was flat at 19,014 (2021: 18,969), with Agency branches down 178 and New Homes Developments up 223 since the start of the year.
“While we remain alert to the ongoing economic uncertainty, Rightmove is not materially impacted by the property market cycle, other than in the most extreme circumstances,” the company said in a statement.
The strong ARPA growth in the second half in 2022, and the momentum it provides for 2023, gives increased confidence in ARPA growth in 2023.
“We expect customer numbers to follow a similar pattern to that of the second half of 2022,” Rightmove said.
The company plans to focus on profitable revenue growth as it continues to invest in innovation and forecast an underlying operating margin for 2023 of around 73%.