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 16 October 2017.

Companies announcing their results next week
Monday

Schroders (trading update)

Investors will be keen to hear comments from the highly regarded fund management group about its outlook and the markets. Assets under management have been increasing and with the many markets near all-time highs, this trend should have continued. 

Tuesday

Virgin Money (trading update)

The share price has underperformed year to date, so investors will be hoping that the CEO continues to be pleased with the momentum of the business, asset quality and that expectations for the year remain on track. The mortgage lending and credit card divisions have been the main areas of growth. Any comments on lending margins, which have been under pressure, will be worth noting.

Segro (Q3 trading update)

Interim results from this property development group in July showed profits up 23% and the company said business confidence in Europe had picked up. The company, which has benefited from the growth of online retailing and the subsequent increased demand for warehousing, said there was no sign of a slowdown in the growth in that area. The shares have outperformed the market so far this year and the company joined the FTSE100 index in June. 

Thursday

Rentokil (trading update)

The steady recovery in performance led to the group joining the FTSE 100 earlier in the year. Investors will be expecting more positive comments regarding the majority of its markets, along with the progress of recent acquisitions. The group’s ‘RIGHT WAY’ plan has benefitted the group and there could be further to come from expansion plans in emerging markets.

Unilever (Q3 trading update)

It has certainly been an interesting year so far for consumer brands giant Unilever with a radical shake-up of the strategy following the failed Kraft Heinz takeover bid in February.

Interim results in July beat expectations with the group making a good start to its new growth and savings strategy “Connected4 Growth”. An update on progress on the latter will be of interest. The company said previously that it expected sales growth to accelerate in the second half. There have been rumours that private equity groups are shortly to make bids for the spreads division so any update on this will be worth noting.

Friday

InterContinental Hotels (Q3 trading update)

Interim results in August did not go down especially well in the market as they showed some revenue per room in the Americas which was weaker than expected. It must be said earnings were in line but the market will be focusing on the performance in the Americas as other hotel groups have also experienced some weakness there in recent times. Investors will also be looking at any news on the company’s expansion plans with 32,000 new rooms in the pipeline at the last update.

 Economic Diary

Announcements for the w/c 16 October 2017

17 October, UK consumer price inflation: September 2017 – Office for National Statistics 

What was disturbing about last month’s inflation figures was the big jump in month on month inflation – 0.6%. Core inflation, ex food, energy and tobacco, was up too, hitting 2.7%. It is true, that with the onset of Autumn, clothing related price hikes tend to push up on inflation, but this time around the increase was exceptional. If October also sees bigger price rises than expected, then the interest rate hawks at the Bank of England will be in the ascendance. However, most economists think inflation is close to peak.

18 October, UK labour market statistics: October 2017 – Office for National Statistics 

The puzzle continues. Before the latest set of data, UK unemployment was already at a 42-year low. Then, last month, the data covering July saw unemployment fall even lower, to just 4.3%.  Despite this, increases in average wages remains lacklustre, meaning that real wages fell. It is likely that today’s data will show another big fall in real wages, but can unemployment fall any lower?

19 October, Retail Sales in Great Britain, October – Office for National Statistics 

Last month, UK retail sales rose 1.0% month on month.  Given that real wages are falling, it is hard to believe that such increases in retail sales are sustainable, sooner or later retail sales will reflect this underlying trend.

Further announcements include:

17 October

  • EU inflation, September – Eurostat
  • UK house prices, August – Office for National Statistics

20 October

  • Public sector finances – Office for National Statistics

 

Please remember, no news or research item is a recommendation or advice to buy. Every Investor is not responsible for accuracy and may not share the author’s views. If you are unsure of the suitability of any investment for your circumstances please contact an adviser. All investments can fall as well as rise in value so you could get back less than you invest and tax policies may change.

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