The market turmoil of the past week and the 200 company results reports have left investors in turmoil. The first few days of October will hopefully be calmer, but there are still plenty of company items to keep investors busy.
There are updates from Tesco and Greggs as well as Wetherspoon’s and Imperial Brands.
MONDAY, 3 OCTOBER
Joules Group PLC (AIM: JOUL) was due to report results Monday, but the retailer of troubled clothes said in an update over the past week that it has been moved back to sometime in November as it continues to consider its financing needs, including a possible equity-raise.
An earlier media report suggested that a posh wellington boot vendor was contemplating insolvency to avoid a possible collapse. This after several profit warnings, failure to agree to investment by Next and a series of profit warnings.
Joules stated in a statement that it was making good progress with its turnaround plan and that its new leadership team is making progress in creating a turnaround plan.
Renewi PLC (LSE: RWI) is still expected to report interim. It stated in June that revenues and underlying earnings were in line.
In a preview of the results, Peel Hunt, a broker, stated that most recyclate prices are still high at pre-Covid levels.
The Tortilla Mexican Grill PLC (AIM: MEX) ‘fast casual’ restaurant chain has been afloat for less than a year. It should be reporting figures for the half-year period ending on 3 July.
It has already been reported that sales of like-for-like increased 19% against the sector benchmark of 5.6%. Total sales rose 60% thanks to the acquisition of Chilango, which includes six sites, six franchise openings, numerous franchise launches, and several delivery partnerships with Uber Eats and Just Eat.
MEX also highlighted the difficult conditions facing the entire restaurant industry, including high levels of cost inflation. However, MEX noted that its full-year profit performance is typically weighted towards the second half of the financial year.
Important announcements Monday
Trading updates: Renew Holdings (AIM: RNWH),
Interims: Tortilla Mexican Grill PLC
Finals James Halstead PLC, Joules PLC, Quadrise fuels International PLC.
Economic announcements PMI Manufacturing, Construction Spending (US), ISM Manufacturing(US), ISM Prices Paid US), PMI Manufacturing(UK)
TUESDAY, 4 OCTOBER
Will the headlines ‘on a Roll’ be used when Greggs PLC publishes third-quarter results Tuesday? Half-year results for August revealed flat profits and slower sales growth during the second quarter.
The cost inflation rate for the entire year was estimated to be about 9%, but Roisin Currie was promoted at February’s start. LFL sales increased 13% in the first four weeks of the third quarter.
Investors will be interested to see how profits compare with cost inflation and progress for sales ( – full preview).
A quarterly update will be provided by Mondi Paper and Cardboard Maker (LSE: MNDI).
It revealed that wood prices were “materially higher” in August as Europeans looked for alternative fuels amid a shortage of Russian gas. However, it was able to overcome strong selling prices and cost control.
Andrew King, chief executive, stated that the outlook was positive. “Pricing is strong going into the second quarter, but we expect continued inflationary pressures to our cost base and ongoing supply chain problems.”
Important announcements on Tuesday
Trading updates: Greggs PLC, Mondi PLC
Interims: Inspiration Healthcare Group PLC (AIM: IHC)
AGMs: Henderson Diversified Income PLC
Economic announcements Factory Orders (US).
WEDNESDAY, 5 OCTOBER
Tesco PLC (LSE: TSCO), released half-year results on Wednesday. This should give a better picture of the state play in the supermarket sector.
This increased uncertainty in the sector and the wider economy. It has not abated since the government’s misfiring “mini-budget”. Analysts are confident that Tesco will be able to weather the UK consumer storm.
Vertu recently told the market that it expects good first-half results, but that it will not change its full-year forecasts, suggesting that the dealer is expecting a tougher second.
It said that new car profit is increasing, but that the demand for used cars is beginning to decline, particularly with the pressure on household incomes.
Although the group still has 13,000 orders for new vehicles, volumes have fallen due to disruptions in supply chains and shortages of semiconductors.
Dealerships of cars are experiencing some bidding activity. See Pendragon for the past month. Vertu, with its 160 outlets, might also feature in this sector given its low valuations.
Broker Liberum stated recently that it believes supply/demand dynamics will remain favourable even as macro pressures increase and maintained a 100p target against 41p on the market.
Important announcements on Wednesday
Finals: Netcall PLC (AIM: NET)
Interims: Tesco PLC, Vertu Motors (AIM: VTU)
AGMs: Omega Diagnostics Group PLC (AIM: ODX), Topps Tiles PLC (LSE: TPT)
Economic announcements PMI Services, UK, PMI Composite(UK), MBA Mortgage Applications(US), Balance of Trade/US), PMI Composite/US), PMI Services/US), ISM Prices Paid/US), ISM Services/US), Crude Oil Inventories/US
THURSDAY, 6 OCTOBER
Tobacco company Imperial Brands PLC, (LSE: IMB), whose key brands include JPS and Davidoff, will release a pre-closed trading update on Thursday.
Footsie shares are among the top 10 blue-chip index performers in the current year. They are also one of 20 companies in positive territory for 2022.
UBS raised its rating to “buy” in the wake of the results. It also noted that the company’s chiefs had key messages about increasing market share in its top five markets and further growth in next-generation products. Loss moderators were being addressed and that the company was ready for a “meaningful, systematic buyback”.
An announcement about this might be delayed until the end of the year, but.
Peel Hunt predicts that Topps Tiles will report fourth-quarter sales falling by double-digits, compared to very strong double-digit growth rates last yea, when stores were reopened after lockdown.
The trading over FY22 was very strong, aided by a pipeline of home projects. We see no signs of slowing down. We expect rising interest rates to continue to slow growth in FY23.
Important announcements on Thursday
Interims N Brown PLC
Trading updates: Chemring PLC, Ferrexpo PLC (LSE: FXPO), Imperial Brands PLC, RS Group PLC (LSE: RS1), Topps Tiles PLC
AGMs Braemar PLC, Diageo PLC (LSE: DGE) and T42 Lot Tracking Solutions PLC
Economic announcements Continuing Claims (US), Initial Jobless Claims(US), PMI Construction(UK)
FRIDAY 7 OCT.
JD Wetherspoon PLC, (LSE: JDW) will publish its full-year results Friday. Previous warnings had warned of higher-than-expected loss.
Boss Tim Martin’s usual diatribe might be longer than usual due to recent economic events.
Boris Johnson was still in power in July when we last heard from him. However, he is likely celebrating the fact that JDW has kept its energy prices at levels that were before the current price spike.
However, most customers of the group won’t be so fortunate and the outlook could be grim.
The US jobs data will produce even more pages than Martin’s probable tirade.
On the first Friday of each month, the latest report on non-farm payrolls is available.
Analysts at AJ Bell stated that “if unemployment remains low and wage growth remains firm, then the US Federal Reserve will likely keep raising interest rates” and continue its US$95bn-a month quantitative tightening program.
Stock markets are not the happiest places, as the Fed has already raised interest rates from 0.25 to 3.25%, their highest since 2008.
The market anticipates further rate increases of 4.50% to 5.00% by May 2020. It then anticipates a pivot towards rate reductions in 2024.
NFP numbers from the US Bureau of Labor Statistics on Friday, October will show how many jobs America has created in September and how it affected the unemployment rate.
For August, there were 315,000 new jobs, which was lower than the average of 495,000 for the 12 months. This left the headline unemployment rate at 3.7%.
Due to the tight labour market, average hourly wages grew 5.2% in 2015, which was slower than the previous year.
Important announcements Friday
Finals by JD Wetherspoon PLC, Superdry PLC (LSE: SDRY)
Economic announcements: Non-Farm Payrolls the US, Unemployment Rate US, Wholesales Inventories US), Consumer Credit US, Halifax House Price Index UK
