Companies announcing results next week

Graham Spooner, investment research analyst at The Share Centre, gives his thoughts on what to expect from companies announcing their results in the week commencing 5 December.

Companies announcing results next week

Monday

St. Modwen Properties

The share price came under further pressure on the back of the Brexit vote, as a result of the uncertainty that it created. The property sector has been put under the microscope ever since, with many experts predicting that pressures will continue to mount. The group, which specialises in the regeneration of brownfield sites, has three major projects: New Covent Garden development, a joint venture project with Vinci on London’s South Bank, Swansea University and a former car factory at Longbridge, near Birmingham. An update on the group’s outlook, especially for London will be worth noting for investors.

Tuesday

Ashtead (Q2 results)

The second half of the year has been very good for equipment rental group Ashtead and its shareholders thanks to the strength of its business, especially in the US, and the commitment from President-elect Trump to increase infrastructure spending over the coming years. The recent strength of the dollar has helped and the shares have strongly outperformed the market, so investors will be interested to hear the company’s comments on future prospects.

Iomart (Q2 results)

The cloud computing group reported full year revenues up by 16% and the market believes this momentum should follow through. Sales will also be partially lifted by the acquisitions that the group has made for which the market expects an update on the integration process and the level of cost synergies while still looking out for news of further acquisitions. On the back of acquisitions the investors will keep an eye on the debt levels which have been rising. Investors will also look at the group’s forward looking statement regarding expansion plans such whether more data centres are going to be opened and what plans they have for their international operations.

Wolseley (interim management statement)

With the share price close to a nine year high investors will be hoping for further confidence from its all-important US operations. The market has been getting excited over plans from the new president elect. There remains the potential for the group to increase its market share, especially in the US. Other areas to concentrate on will be cost cutting, the effect of the weak pound and cash generation.

Companies also reporting today include: EasyJet (November 2016 Sales and Revenue Release) and OPG Power Ventures (Q2 results)

Thursday

TUI (Final results)

Tourism group TUI is entering the most critical part of its trading year as many of its customers begin to think about and book next year’s summer holiday. In September the company said it was confident of delivering a 12-13% rise in full year earnings, ahead of the 10% previously forecast. It also reported that revenue for this winter season was up 11% with trading in the UK especially strong. Investors will be focusing on any further update on that as well as checking to see if the cruise business is still performing well. There may also be further details of the new European airline joint venture with Etihad.

Friday

Photo-Me International (Q2 results)

The last trading update in October was positive, with FX movements and investment in the business leading to an improvement in earnings. Investors will be hoping for further positive news from its laundry business, which operates in various parts of Europe. There may also be an update regarding the implementation of ID cards in Japan. The majority of revenues are generated from three primary territories UK and Ireland, France and Japan.

Announcements for the w/c 5 December: 

5 December, Purchasing Managers Index tracking UK services, and composite Purchasing Managers Index – Markit/Chartered Institute of Procurement & Supply.

Last month, the PMI tracking services rose sharply, jumping from 52.6 to 54.5, the highest reading since January.  Business expectations had fallen to a seven and half year low in July, but last month sentiment was the strongest since May. The manufacturing PMI did in fact fall in the month, but the rise in indexes tracking construction and services pushed the composite up to 54.6 from 53.8, which is consistent with a quarterly growth rate of 0.5 per cent, matching growth in the second quarter.

8 December, Residential Survey Market – Royal Institution of Chartered Surveyors.

Last month, the closely watched survey from RICS rose from plus 18, to plus 23, contrasting with a reading of just plus six in the month after the Brexit vote.  It was a month of modestly rising demand with new buyer enquiries rising slightly while new instructions fell slightly. Expectations were positive for all areas except London – where prices are expected to remain flat.

Further announcements include:

6 December

  • Record of FPC Meeting held on November 23rd – Bank of England
  • Mergers and acquisitions involving UK companies, July to September 2016 – Office for National Statistics
  • EU GDP and main aggregates, Q3 – Eurostat
  • Economic Review – Office for National Statistics
  • PMIs tracking services and composite PMIs for Eurozone, US and China – Markit in Europe, Markit and ISM in US, and official plus Caixin in China

7 December

  • Index of production, October – Office for National Statistics

8 December

  • Governing Council of the ECB: monetary policy meeting in Frankfurt – European Central Bank

9 December

  • UK trade, October – Office for National Statistics
  • Construction output Great Britain, October 2016 – Office for National Statistics

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