Companies announcing their results next week

Graham Spooner, investment research analyst at The Share Centre, gives his thoughts on what to expect from companies announcing their results next week, the week commencing 4 September 2017.

Companies announcing their results next week

Wednesday

Barratt Developments (Final results)

The last trading update in July stated that full-year profits would be ahead of market expectations at £765m, helped by a rise in the price of homes sold and cost cutting. The market will be interested to hear if average selling prices have continued to rise and whether market conditions in London remain weak. Investors will also focus on any signs that the company is still cautious about buying further land for development, as has been the case for some time. 

PPHE Hotel (Interim results)

In May the company said it had a strong first quarter with a marked improvement in trading in the London leisure market. With the Office for National Statistics reporting a record number of overseas visitors to the UK in June, thanks to the weak pound, it will be interesting to hear if that is benefiting PPHE, which operates eight Park Plaza properties in London. The shares have performed very strongly so far this year and investors will be interested to hear if the company intends to repeat the special dividend paid last year thanks to good cash generation.

Thursday

EnQuest (Q2 results)

The results are still likely to be overshadowed by last week’s production update, which highlighted problems at its Kraken field in the North Sea and cut production targets. As a result of that, questions have again been raised about the group’s balance sheet. Investors will be hoping for more clarification on the situation especially with regard to production targets for 2018. 

 

Economic Diary

Announcements for the w/c 4 September 2017

5 September, Purchasing Managers Index (PMI) services and composite PMI, September – Markit/Chartered Institute of Procurement and Supply. 

While the PMI tracking UK manufacturing looked quite healthy last month, the PMI for construction fell to an 11-month low.  But the services sector is vital to the UK economy. Last month the Business Activity Index, tracking services, rose from the month before to 53.8, but even so, the index pointed to slower growth than the post-crisis trend. Together the three indexes pointed to growth of just 0.3%. Did August do any better?

8 September UK trade, Construction output in Great Britain and UK index of production: July 2017 – Office for National Statistics.

In July, the goods and services trade deficit rose to £4.6bn, while construction output fell 0.1% on the month before and by 1.3% quarter on quarter. As for industrial production, this did increase by 0.5% month on month, but fell by 0.4% quarter on quarter, while manufacturing output saw zero growth month on month and 0.6% contraction, quarter on quarter: altogether, a woeful set of figures. However, recent purchasing managers indexes pointed to a pick-up in manufacturing output and a big jump in exports, although they pointed to harder times for construction.  Will the official data reflect the more optimistic findings of the purchasing managers indexes?

Further announcements include:

5 September

Purchasing Managers Indexes covering services, euro area, US, China – Markit, ISM, Caixin

7 September

Purchasing Managers Index, UK construction, September – Markit/CIPS

Governing Council of the ECB: monetary policy meeting in Frankfurt

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