Wed. Dec 1st, 2021

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Retailer AO World is on the sharp side of supply shortages. Just eight weeks ago, the online white goods and electrical retailer predicted adjusted earnings of between £ 35 million and £ 50 million. But the profits would have been sharply skewed towards the festive climax.

The group said this morning that the “most important current peak trading period is significantly softer” than they expected and that full annual earnings would only be between £ 10 million and £ 20 million, with revenue at its best flat. Sales could drop as much as 5 percent year-on-year, AO warned.

AO was hit by the delivery manager shortage, but also problems with sourcing products, with poor availability in some of its newer categories. Shipping costs, “material input prices” and consumer price inflation contribute to the list of misery that AO’s name control contains in its statement.

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Meanwhile co-dealer Pets at home has a much better time of it: Pets said this morning that underlying pre-tax gains are expected to be at the top of analysts’ expectations. It added that the upswing in the “pet population” since the beginning of the first constraint “significantly increased the size of our addressable market” and it has now “seen a path to £ 2.3bn” of medium-term income, in comparison with £ 1.4 billion last year.

Catering group Compass had a difficult pandemic, but this morning struck an optimistic tone in its full-year results and reinstated its dividend. Underlying revenue returned to 88 percent from 2019 levels in the three months to September, the last quarter of Compass’ financial year. It estimated that operating margins should return to pre-Covid levels by the end of the new financial year.

Newspaper group Reach, which owns the Mirror and Star along with its portfolio of regional titles, said revenue for the year so far has exceeded expectations. It pointed to a “strong digital revenue performance” and “resilience” in its print titles. Revenue rose 2 percent year-over-year – but is still down 14 percent from two years ago.

Petershill Partners, the Goldman Sachs Alternative Assets Unit, which listed earlier this year, released a third-quarter trading update. Assets under management at Petershill companies rose 8 percent during the quarter. Petershill said performance was in line with expectations and the medium-term guidance provided at the time of its IPO was unchanged.

Also out today is a trade update from advertising agency M&C Saatchi, which said that pre-tax profits would exceed analysts’ expectations and usefulness Severn Trent.

Beyond the square mile

Binance is in talks with sovereign wealth funds over their stake in the world’s largest cryptocurrency exchange, Mercedes Ruehl reported of Singapore. Binance founder Changpeng Zhao told the FT he believes the investments will help improve “perception and relations” with various governments, but that it should be careful to be linked to specific countries.

That of Tesla short sellers threw in the towel and settled most of their bets against the car company as retail investors continued to fund its rise. Short positions in Tesla fell to 3.3 percent from 19.6 percent at the beginning of last year, our markets team report. Short seller Carson Blok, founder of Muddy Waters said that “in principle” the reasons why people cut Tesla short, “were not wrong”. However, he continued: “But the other side is Elon Musk, who’s better at playing the public company game than anyone I’ve ever seen. ”

Fidelity, UBS and State Street Global Advisors are the latest fund managers who have said they are looking at launching products that offer exposure to crypto. But asset managers still face obstacles in entering the cryptocurrency space, such as Ed Moisson reported.

Helen Thomas pack the slow bleeding it is Brexit and the City in her column today, while regulation correspondent Laura Noonan points out the problems that banks experience in modeling their loan losses after their models were for estimating borrowers’ financial health broken by the pandemic.

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