MARKET REPORT: Growth across Italy and Spain help Trainline post a big leap in annual sales and profits
Never mind the UK train strikes, it was growth across Italy and Spain that helped Trainline post a big leap in annual sales and profits.
The online rail ticket selling platform saw its full year revenue jump by 21 per cent to £396.7m as ticket sales rose 22 per cent to £5.3billion, above £5billion for the first time, and at the top end of its previous guidance range. International net ticket sales surpassed £1billion, with combined growth in Spain and Italy of 43 per cent.
For the new financial year, Trainline predicted net ticket sales growing by 8 per cent to 12 per cent, and revenue rising between 7 per cent to 11 per cent.
Trainline also announced a £75m share repurchase programme, having recently completed a £50m buyback which kicked off in September. Trainline shares surged 6.6 per cent, or 19.8p, to 320.8p.
The FTSE 100 steamed ahead to a record level above 8200 for the first time, at 8248.73, and closed up 0.5 per cent, or 41.34 points, at 8,213.49 – still a record.
Full steam ahead: For the new financial year, Trainline predicted net ticket sales growing by 8 per cent to 12 per cent, and revenue rising between 7 per cent to 11 per cent
Early strength on Wall Street provided a lift after weaker-than-expected payrolls data kept US interest rate cuts in play. Meanwhile, the FTSE 250 added 0.6 per cent, or 112.21 points, to 20164.54.
Investors welcomed a new finance boss at Diageo, which inched up 0.02 per cent, or 0.5p, to 2729p. The Guinness and Johnnie Walker maker named Nik Jhangiani as its chief financial officer, with Lavanya Chandrashekar leaving after three years. Jhangiani has been finance at bottling group Coca-Cola Europacific Partners since 2016.
Holiday Inn owner InterContinental Hotels Group fell 2.1 per cent, or 162p, to 7726p. It reported an easing in revenue-per-available-room growth in the first quarter. Weakness in the Americas and a slowdown in China limited progress.
Paper and packaging business Mondi was also a FTSE faller, losing 0.6 per cent, or 9.5p to 1563.5p.
A weak first-quarter trading update showed selling prices were sluggish and underlying profit declined, the firm said.
TGI Fridays restaurant operator Hostmore saw its shares temporarily suspended from trading at the previous session’s closing price of 20.2p as it missed the April 30 deadline to publish its annual financial report because the firm’s auditor’s requested additional time to complete a review of non-cash items.
The full year 2023 results, however, were released in the session and showed a greatly improved loss from operations in a transitional year, at £11.1m against £95.8m in 2022, with total revenue of £190.7m, down from £195.7m.
The shares closed 3.6 per cent, or 0.73p, to 19.48p.
On AIM, chartered surveyors Fletcher King jumped 27.1 per cent, or 9.5p, to 44.5p after it reported a strong second half performance – a turnaround from the more cautious outlook it gave back in December. Revenue for the year ended April 30 is expected to be materially higher than management expectations.
Marketing technology group Electric Guitar disappointed on its AIM debut. Shares slid 14.3 per cent, or 0.3p, to 1.8p against a subscription price of 2.1p.