Shares in building materials distributor and DIY retailer, Grafton PLC (LON:GFTU_u), fell 2.3% after the group reported a 3.6% fall in pre-tax profits to £143.4mln and analysts suggested profit forecasts would have to be lowered.
Analysts at Peel Hunt said trading post the interims “has seen flat like for like performance, which likely implies double digit volume declines, in our view.”
“The UK saw a weak July trading period, not helped by the record temperatures and pick-up in holidays.”
“The group is guiding for diluted operating profit to in-line with the current consensus of £267m (which sits 5% below our estimate).”
However, the broker cautioned that this is contingent on the September to November trading period seeing the usual pick-up in demand.
“Given the macro-economic headwinds that continue to build, the risk to to these numbers clearly sits to the downside” Peel Hunt concluded.
Harbour Energy powers ahead
Harbour Energy PLC (LSE:HBR) topped the FTSE 250 risers with shares surging 10% after it reported half year results.
Michael Hewson chief market analyst at CMC Markets UK noted that the group “last year the company managed to generate annual revenues of $3.48bn, while this year it expects that to rise to $5.18bn” adding “today’s first half numbers show that the company is well on course to achieve that goal with H1 revenues of $2.67bn, with profits after tax rising to $984m, up from $87m a year ago, helped in some part by the weakness of the pound.”
The bulk of its revenue came from crude oil to the tune of $1.54bn, followed by gas which increased from $395mln to $970mln, with $857mln of that revenue coming from its UK gas assets.
Analysts at Peel Hunt said the results showed a “strong operating and financial performance” and said upgrades to full year forecasts are highly likely.
They retained an add rating on the company with a 525p price target.