Boohoo continues to deliver strong double-digit topline growth, Bellway sees demand and costs for homes still increase, Ashtead returns to growth after a troublesome year, AstraZeneca remains hopeful on its coronavirus treatment, and Avast to assist small businesses with cybersecurity.

Top News: Boohoo sales grow within the UK and US but lag elsewhere

Boohoo reported strong sales growth within the half-moon of its fiscal year because of a surge in demand within the UK and therefore the US, keeping the web fashion retailer on track to deliver another year of progress.


Revenue within the three months to the top of May rose 32% to £486.1 million from £367.8 million. That came in before the £461.7 million forecast by analysts. Notably, the expansion was driven by its two biggest markets within the UK and therefore the US, which offset a fall in sales in Europe et al. .


That is before the 25% annual sales growth that Boohoo is targeting over the complete year, alongside an adjusted Ebitda margin of 9.5% to 10%.


Boohoo said it's now successfully integrated its new brands - Dorothy Perkins, Wallis and Burton – onto its platform. Meanwhile, the new Debenhams digital emporium has been launched.


It has also opened its new distribution centre in Wellingborough, which should be operational on schedule within the second quarter of the fiscal year .


‘I am delighted with our performance within the half-moon , particularly because it was always getting to be challenging to supply strong growth rates on last year, when lockdowns round the globe drove such high traffic to online retailers. the 2 year CAGR of 38% highlights the group’s continued phenomenal growth, with revenues having increased 91% over the last two years, with particularly strong performance in key markets like the united kingdom and US, where sales have quite doubled,’ said CEO John Lyttle.


Where next for the Boohoo share price?

Boohoo share price has been range bound since early May, capped on the upside by the 50 sma around 331p and on the downside by 300p. Boohoo trades at the upper end of the range. 


Whilst the worth is edging lower, the up-trending MACD keeps buyers hopeful. However, any recovery would wish to interrupt above the 50 sma, A level which the share price has failed repeatedly to meaningfully break above last week and in the week . 


A break above the 50 sma could bring the 100 sma at 335p into play before buyers look towards 347p high April 22. 


A move below 320p could see sellers gain traction and head towards 300p and 295p. 


Bellway capitalises on rising demand and better prices for homes

Housebuilder Bellway said demand for homes is constant to recover to pre-pandemic levels while prices keep heading higher.


Average reservations between the beginning of February and June 6 came in at 239 per week. that's up over 51% from the 158 reservations being made per week last year, when it had been negatively hit by the pandemic. However, it remains slightly below the 244 reservations per week being made within the same period in 2019, before the pandemic erupted.


Still, demand remains strong. Its forward order book has jumped in value to £1.89 billion from just £1.56 billion at the top of May 2020 and £1.64 billion at the top of June 2019.


Bellway reaffirmed its ambitions to create 10,000 homes within the current fiscal year as an entire , up from 7,522 homes within the last fiscal year but below the ten ,892 homes delivered the year before.


However, lower completions should be offset by higher prices. Average selling prices are expected to exceed £300,000 this fiscal year compared to £293,054 the year before.


Bellway said it's also made a ‘record investment’ in land to make sure it's the platform it must continue growing over the approaching years and to enhance its margin. It said it's 15,982 plots of land contracted compared to only over 10,000 a year ago.


Bellway ended the amount with net cash of £408 million, having turned from net debt of £157 million at the top of May 2020.


‘We have continued our front-footed approach to land acquisition, making a record investment in new sites, thereby enabling us to grow sales outlets and meet the continued demand for brand spanking new homes within the years ahead. This disciplined investment approach, along side our strong record , ensures that Bellway is during a good position to continue its long-term growth strategy,’ said chief executive Jason Honeyman.


Bellway shares were trading 0.1% lower in early trade this morning at 3482.5p.



Ashtead returns to growth following a troublesome year

Ashtead said it returned to growth within the final three months of its fiscal year , helping cushion the initial blow caused by the pandemic, and is on track to deliver further topline growth going forward.


The equipment rental firm said rental revenue was up 15% within the final three months of its fiscal year to the top of April to £1.09 billion. Overall revenue was up 23% to £1.27 billion. Ebitda grew by 30% to £552 million. Rental revenue missed the £1.18 billion forecast by analysts, but earnings came in markedly above the £499 million expected.


‘We returned to growth within the fourth quarter with rental revenue up 15% over last year and up 14% in comparison with the fourth quarter of 2018/19, both at constant exchange rates. This completes a year of market outperformance across the business with full year rental revenue up 1% at constant exchange rates,’ said chief executive Brendan Horgan.


That represented a big improvement compared to the remainder of the year, which saw Ashtead suffer because the pandemic weighed on demand. Annual rental revenue edged up just 1% to £4.60 billion with Ebitda inching up 1% to £2.37 billion. once more , rental revenue missed expectations, but earnings were slightly better than anticipated.


Annual adjusted pretax profit was down 2% to £998 million, with reported pretax profit down 1% to £936 million.


Ashtead said it'll pay a final dividend of 35.0 pence after reporting record free cashflow of £1.38 billion, which was impressive compared to the £792 million delivered the year before. That takes the payout for the full-year to 42.15p, up from 40.65p last year.


‘We have shown that our business can perform in both good times and tougher ones. We enter the new fiscal year with clear momentum, strong positions altogether our markets, supported by top quality fleet, a robust financial position and our exciting new Sunbelt 3.0 strategic plan, positioning us well to reply to plug conditions and capitalise on opportunities,’ said Horgan.


Ashtead said it's getting to deliver 6% to 9% rental revenue growth within the new fiscal year and deliver free cashflow within the region of £600 million to £800 million.


Ashtead shares were trading 0.7% lower in ealy trade this morning at 5056.0p.



AstraZeneca remains hopeful on coronavirus treatment

AstraZeneca said the newest results from an attempt testing the effectiveness of its antibody combination designed to stop people exposed to the virus from experiencing symptoms showed it did not meet its primary endpoint.


The trial assessed the security and efficacy of AZD7442, a long-acting antibody combination, in preventing coronavirus symptoms in people recently exposed to the virus. The trial involved over 1,100 volunteers.


Although it didn't prove effective in protecting people already exposed to the virus, the results suggest it could protect people that haven't yet been infected. Other trials are ongoing to explore this possibility further.


‘While this trial didn't meet the first endpoint against symptomatic illness, we are encouraged by the protection seen within the PCR negative participants following treatment with AZD7442. We await results from PROVENT, our pre-exposure prevention trial and TACKLE, our treatment trial in preventing more severe disease, to know the potential role of AZD7442 in protecting against COVID-19,’ said Mene Pangalos, the chief vice chairman of biopharma R&D.


Notably, AstraZeneca has already signed a $205 million deal to provide up to 500,000 doses of AZD7442 to the United States government once it's been approved by the Food & Drug Administration. the corporate said it's now in talks about the ‘next steps’.


AstraZeneca shares were trading 0.6% higher in early trade this morning at 8391.5p, edging close toward its highest level since November.



Avast to assist UK small businesses bolster their cyber security skills

Avast has struck a replacement strategic partnership to become the exclusive provider of cybersecurity tools for the national network of the UK’s largest networking group for little businesses, Enterprise Nation.


The cybersecurity firm said the partnership will see quite 500,000 small businesses across the united kingdom have access to its services to make sure they will operate safely during a digital world. Avast claims that four in ten businesses and one in four charities have reported being hit by a cyber-attack within the last year alone, with the pandemic thought to possess led to a rise in attacks.


‘SMBs are the lifeblood of the united kingdom economy, and that they have faced unprecedented challenges in recent times, including temporary closures of their businesses, implementing remote working, and scaling e-commerce for sales and customer communication. For many, they need had to try to to this without dedicated, or at the best minimal, IT support within the face of increased cyberattacks,’ said Marc Botham, the vice chairman of Avast’s Worldwide Channel and Alliances.


‘The focus now must get on post-Covid business recovery and growth. We are committed to working with Enterprise Nation to support SMBs by providing them with the tools, resources, and insights they have to optimise their digital possibilities securely and effectively.


Enterprise Nation engages with around 60,000 founders of small businesses monthly and Avast is keen to tap into that pool.


Avast shares were trading 0.3% higher in early trade this morning at 489.2p.