Corporate news should include updates from Next Fifteen Communications and Shepherd Neame, as well as information about water companies Pennon and United Utilities.
It is unclear how the market chaos that ended the previous week will continue in the coming days, following the mini-Budget by the government and the Bank of England rate increase. Investors and traders were disappointed.
There is also a busy financial City calendar, with Next, Cineworld and Boohoo among others.
MONDAY 26 SEPTEMBER
Corporate news for Monday should include a Next Fifteen Communications update, which is currently in the middle of a takeover battle with M&C Saatchi.
Recent trading statements from May and June indicated that the Next Fifteen revenue growth was strong, which has been further supported by the strength US dollar.
The revenue grew 68% over the three-month period ending April 30, with organic revenue growth by approximately 37%. Trading remained strong through May and adjusted profit before taxes was reported to have been higher than management expected.
Finals from Finsbury Food Group were updated in July. It stated that full-year results would show “a record revenue performance”, despite inflationary headwinds.
AIM-listed UK speciality baker, the company said that total sales increased 13.9% to £356.8mln. Volume was 8.7%.
It stated that input cost inflation, staff shortages and other supply chain disruptions were generally mitigated “through revised commercial arrangements and operational improvements and other supply-chain initiatives”.
Important announcements are expected Monday 26 September
Interims: Concurrent Technologies PLC, CPP Group PLC(LSE: CPP), Likewise Group PLC (AIM: LIKE), Microlise Group Next Fifteen Communications Group, Xpediator PLC (AIM :XPD)
Finsbury Food Group PLC Finals
AGMs: Babcock International Group PLC and Eckoh PLC (AIM: ECK), Eco Veterinary Health Group PLC (AIM: EAH), Great Eastern Energy Corp Lamprell PLC (LSE: LAM)
TUESDAY, 27 SEPTEMBER
After the market chaos resulting from the Bank of England rate rise and the mini-Budget, updates from the financial sector are expected to be informative.
Close Brothers Group PLC (LSE: CBG) will take the helm on Tuesday. This is the FTSE 250-listed merchant banking bank and owner of Winterflood’s market maker. Here, people might be rewriting commentary about current conditions and anticipated future events.
Card Factory (LSE: CARD) will provide insight into one corner of the retail market. This is where little has been said since May’s final results, which were impressed with their performance exceeding management expectations.
The revenue of the specialist retailer of gift cards, wrapping and bags rose 28.0%. Store sales increased 33% year-on-year, but were down 3.9% on a like-for-like basis, compared to pre-Covid.
Investors will want to know if there is a recovery in-store sales and the impact of inflationary pressures.
Boss Darcy Willson–Rymer stated at the time that the company had taken pre-emptive measures to help reduce inflationary pressures across the business. We will continue to monitor the environment and respond to any new macro-environmental pressures.
Water company United Utilities Group PLC is also listed (LSE: UU) and will issue a trading statement if revenues have increased beyond pre-pandemic levels, but not operating profit.
Analyst Laura Hoy from Hargreaves Lansdown said that more of the same can be expected. Higher labour and material costs will wipe out any top-line gains and the next price review won’t kick in until 2025.
“The next regulatory cycle might not provide much relief, given the need to repair leaky pipes and the calls to lower customer bills during the cost-of-living crisis.
Investors will be able to access dividends. The group has stated that it will increase its dividend in line with inflation. However, Hoy suggested that UU might have to take on more debt in order to continue its dividend payments.
SSP Group plc, (LSE: SSPG) will be focusing on the operator of food- and drink outlets at stations and airports. The rebounding tourism and travel sector has been a favourite of bargain hunters and investors in recent years.
TinyBuild Inc, a video games company, is expected to report interims. In July, the market was updated with an “at least in accordance with expectations” trading update.
Important announcements are expected Tuesday 27 September
Trading update: SSP Group PLC and United Utilities Group PLC
Interims: Animalcare Group PLC, AG Barr PLC(LSE: BAG), Billington Holdings Plc, (AIM: BILN), Card Factory PLC (AIM: DBOX), Ergomed PLC (AIM: ERGO), Card Factory PLC (AIM: DXRX), Personal Group Holdings (LSE: SAGA), Serica Energy PLC (AIM: SQZ), The Mission Group PLC, YU Group PLC, tinyBuild Inc,
Finals: Close Brothers Group PLC Transense Technologies PLC
AGMs: Bens Creek Group PL, Cohort PLC, Empyrean Energy PLC, First Property Group PLC, GRC International Group PLC, Great Southern Copper PLC, Redde Northgate PLC, Spectral MD Holdings Ltd, TP Group PLC, Yourgene Health PLC.
Economic announcements: BRC Shop Price Index, UK Durable Goods Index (US), House Price Index(US), Consumer Confidence Index (US), New Homes Sales US)
WEDNESDAY, 28 SEPTEMBER
Boohoo Group PLC (AIM: BOO) is the UK’s most-shorted stock.
Peel Hunt, a broker, remained positive and expected the online retailer to announce profit and sales in line with its guidance for May.
An analyst said that the focus would be on the future, not the past.
Broker Peel Hunt stated that Shepherd Neame (AQSE.SHEP) Ltd was expected to have had a “productive year”.
It is reducing its debt and recently purchased three pubs from East Anglia Pub Company.
“We believe that the company is seeking to further reduce its carbon footprint/add sun at the brewery and throughout the estate. The beer tie is more valuable than businesses that are under commercial leases and receive no support.
Important announcements are expected Wednesday, 28 September
Interims: Boohoo Group PLC, Everyman Media Group PLC, Intercede Group PLC, Octopus Renewables Infrastructure Trust PLC, Skillcast Group PLC.
Finals: Avingtrans PCLC (AIM: AVG), Blancco Technology Groups (AIM: BLTG)
AGMs: 600 Group (AIM: SIXH), Amigo Holdings PLC (LSE: AMGO), AO World PLC (LSE: AO. )
Economic announcements: BRC Shop Price Index, MBA Mortgage Applications (US), Pending Homes Sales and Crude Oil Inventories in the US
THURSDAY, 29 SEPTEMBER
Next (LSE: NXT) should deliver solid first-half results as it has already informed the market.
Barclays said that investors will likely place a lot of emphasis on the retailer’s third-quarter start.
The Porsche initial public offering is another notable event.
Parent Volkswagen valued the shares floated at EUR76.50-EUR82.50. This translates to EUR70bn-EUR75bn.
Porsche Europe’s third-largest IPO would be at the top end of this range. However, this figure has been reduced from EUR100bn.
Initial indications indicated that retail investors might be eligible for an allocation. However, given the high demand, it may prove difficult for them to obtain a substantial portion.
Important announcements are expected Thursday, 29 September
Interims: Angle PLC. Bango PLC. (AIM: BGO), Celadon Pharmaceuticals PLC. (AIM: DCTA), Next PLC, Novacyt PLC, Synairgen PLC (AIM: SNG), XLMedia PLC. (AIM: XLM).
Finals: Allergy Therapeutics PLC, Cap-XX Ltd, McBride PLC, Physiomics PLC.
AGMs: ActiveOps PLC, Afritin Mining Ltd, Chill Brands Group PLC, Coral Products PLC, CT Global Managed Portfolio Trust Plc, Growth Shs, Kodal Minerals PLC, Migo Opportunities Trust PLC, and Nwf Group PLC.
Ex-divs to lower FTSE 100 by 6.32 points (British American Tobacco PLC and Smurfit Kappa Group plc, Smith & Nephew, Rightmove PLC, Barratt Developments PLC.
Economics announcements: Gross Domestic Product (US), Initial Jobless Claims(US), Continuing Claims, Personal Consumption Expenditures and Consumer Confidences (US), Economic Sentiment Index (EU), Industrial Confidence/EU), Services Sentiment/EU
FRIDAY, 30 SEPTEMBER
Friday will be a difficult day for the Cineworld Group PLC. These were reversed after the US launched Chapter 11 bankruptcy proceedings.
The company was granted access to US$785mln from approximately US$1.94bn of existing lenders in its Chapter 11 filing.
Cineworld and its brands around the world, including Regal, Cinema City and Picture House, are open as normal during Chapter 11.
The shares in the group fell over 95% during the past year. Short seller Argonaut warned that the capital structure of the company “is completely unsustainable.”
A trading update from the water company Pennon Group PLC, (LSE: PNN). In the summer, South West Water was subject to an enforcement case by regulator Ofwat over sewage spillages into the rivers and sea.
South West Water was added because of “heightened concerns over its environmental performance across many metrics that may suggest that it is not complying with obligations”, according to the regulator.
Pennon, who also owns Bristol Water said that it would cooperate “openly, constructively” with Ofwat.
Investors will be focusing on the financials most of the time, but analysts JP Morgan placed Pennon and Severn Trent on their ‘negative catalyst watch list’ due to the possibility of Ofwat exercising its muscles.
Important announcements expected Friday, September 30, 2008
Trading update: Pennon Group PLC
Interims: Belluscura Ltd. Cineworld Group PLC, CMO Group PLC, Dignity PLC, DP Eurasia NV, Trellus PLC
Finals: Celtic PLC, Induction Healthcare Group PLC (AIM: INHC)
AGMs: Boussard & Gavaudan Holding Ltd, Capital Metals PLC, Henderson Smaller Cos Investment Trust PLC, Insig AI PLC, Libertine Holdings PLC, Miton UK MicroCap Trust PLC, Oakley Capital Investments PLC, OTAQ PLC, TMT Acquisition PLC, Versarien PLC, TPXImpact Holdings PLC.
Economic announcements: GDP, Current Account (UK), Mortgage Approvals(UK), Consumer Credit/UK), Nationwide House Price Index (US), Personal Consumption Expenditures, Personal Income (US), Personal Spending and Personal Income (US), Chicago PMI/US), U. of Michigan Confidence [Final (US), Unemployment rate (EU)
