Latest news with #FTSE 250
Times
29-07-2025
- Business
- Times
Greggs first-half profits drop as heatwave hits sales
Consumers' lack of appetite for Greggs' sausage rolls and steak bakes during June's heatwave caused profits at Britain's biggest bakery chain to fall sharply in the first half of the year. Greggs, which is based in Newcastle upon Tyne, told shareholders this morning that pre-tax profit had dropped to £63.5 million for the six months to the end of June, down from £74.1 million in the same period a year earlier, as the company was hit by hot weather kept shoppers away from its stores. At the start of July, the FTSE 250 firm warned that the 'volatile weather conditions' seen in recent weeks, which had impacted customer purchasing patterns, had forced management to re-evaluate its forecasts. Greggs expects this year's operating profit 'could be modestly below' the £195.3 million achieved in 2024. Roisin Currie, chief executive, said: 'After a challenging start to 2025 we remain clear on the strategic opportunities that lie ahead.' However, her confidence failed to reassure investors as Greggs shares, which have lost more than 46 per cent of their value since the start of the year, fell a further 6 per cent to £15.48, down 97p. As disclosed in its recent trading update, like-for-like sales at company-managed shops grew 2.6 per cent in the first half, lifting revenues to £1.03 billion, while its franchise-operated shops delivered like-for-like growth of 4.8 per cent. Sales growth was supported by the expansion of Greggs' menu, longer opening hours into the evening, increased delivery sales through Just Eat and Uber Eats and building loyalty with the Greggs app. Greggs was founded as a delivery business on Tyneside by John Gregg, who opened his first shop in Gosforth in 1951. His sons, Ian and Colin, expanded the business around the country and floated it in 1984. The business now has about 33,000 employees and has grown its portfolio to 2,649 stores. In the first half, it opened 31 new shops on a net basis — those opened minus those closed, and said it remains on track to achieve between 140 and 150 net new shop openings this year. Slowing sales growth at Greggs has sparked concerns that the chain may be approaching the limits of its domestic growth model, leading analysts to question whether the company can keep up the pace of store openings. Currie, who succeeded Roger Whiteside as chief executive in 2022, stood by Greggs' long-term store growth plan, saying there remains a 'clear opportunity for significantly more than 3,000 UK shops.'
Daily Mail
10-07-2025
- Business
- Daily Mail
Vistry pins hopes on significant step up' in affordable housing deals as profits slump
Vistry Group expects a 'significant step up' in affordable housing contracts over the second half after a sluggish start to the year. The FTSE 250 firm told investors on Thursday demand from its affordable homes partners stayed at 'lower levels' in the first half of 2025, owing to funding constraints and uncertainty ahead of the June Spending Review. However, the UK Government unveiled plans last month to allocate £39billion over the coming decade to deliver around 300,000 new social and affordable homes. It hopes the funding will help achieve its goal of constructing at least 1.5 million new properties in this Parliament. The government has also announced a consultation on social rent convergence and a 10-year social rent settlement capping the amount social landlords can increase rents annually at inflation plus 1 per cent. Vistry said: 'We have worked closely with our partners, identifying a strong pipeline of development opportunities, and expect the funding and other important initiatives to support a significant step up in new contracts with our affordable housing partners in H2 2025.' Vistry further said it expects to report adjusted operating profits of around £125million for the six months ending June, which was in line with forecasts, although lower than the £161.8million made over the same period last year. The Kent-based business completed about 6,800 properties, versus 7,792 in the first half of 2024, while the average weekly sales rate decreased from 1.21 to 1.02. It noted open market demand remained impacted by affordability issues for first-time buyers and anticipated interest rate cuts 'being pushed further out.' However, sales from the private rented sector continued to be strong thanks to new market entrants and higher investment activity. Vistry also forecasts higher profits in 2025 on the back of a £4.3billion forward order book, which excludes any benefit from the government's new affordable homes programme. Greg Fitzgerald, its chief executive, said the combined measures 'drive the delivery of the high-quality affordable homes the country so badly needs'. Aarin Chiekrie, equity analyst at Hargreaves Lansdown, believes the £39billion scheme is 'likely to benefit Vistry more than most other players in the [housebuilding] sector'. He added: 'Given its low valuation and favourable position in the sector, this could be an attractive time to invest in a housebuilder. 'But potential investors will need plenty of patience and confidence that management has ironed out the operational issues that weighed on performance at the end of 2024.' Vistry's profits plunged by almost two-thirds to £104.9million last year after it incurred a £92million blow from underestimating building costs in its southern division. Vistry Group shares were 1.6 per cent lower at 616.2p on Thursday morning and have more than halved over the past 12 months.
