Next week on the stock market
We take a look at what to expect from a selection of FTSE 100, FTSE 250 and selected other companies reporting next week.
This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.
4 March 2021
Among the companies reporting next week;
- The effects of further lockdowns will make themselves known in ITV's Studios business.
- Trends are improving at Ibstock but how strong any recovery will be is still unclear.
- We’ll see whether a slower-than-expected recovery in travel quashed Rolls Royce’s free cash plans.
FTSE 100, FTSE 250 and selected other stocks scheduled to report next week
|Clarkson||Full Year Results|
|Direct Line Group*||Full Year Results|
|Diversified Gas & Oil||Full Year Results|
|Network International||Full Year Results|
|Pearson*||Full Year Results|
|Phoenix Group||Full Year Results|
|RHI Magnesita||Full Year Results|
|Cairn Energy||Full Year Results|
|Capital & Counties||Full Year Results|
|Deutsche Post*||Full Year Results|
|Domino's Pizza Group||Full Year Results|
|Gamesys||Full Year Results|
|ITV*||Full Year Results|
|IWG||Full Year Results|
|Keller Group||Full Year Results|
|M&G*||Full Year Results|
|Standard Life Aberdeen||Full Year Results|
|TP ICAP||Full Year Results|
|Ultra Electronics||Full Year Results|
|Balfour Beatty*||Full Year Results|
|CLS Holdings||Full Year Results|
|FDM Group||Full Year Results|
|Ibstock*||Full Year Results|
|Inditex*||Full Year Results|
|IP Group||Full Year Results|
|Just Eat Takeaway.com||Full Year Results|
|Legal & General*||Full Year Results|
|National Express||Full Year Results|
|Quilter||Full Year Results|
|Spirax-Sarco||Full Year Results|
|Tullow Oil*||Full Year Results|
|Derwent London||Full Year Results|
|Helios Towers||Full Year Results|
|IG Group||Q3 Trading Statement|
|Just Group||Full Year Results|
|Marshalls||Full Year Results|
|Playtech||Full Year Results|
|Rolls-Royce*||Full Year Results|
|Savills||Full Year Results|
|Spirent Communications||Full Year Results|
|WM Morrison Supermarkets*||Full Year Results|
|WPP*||Full Year Results|
|Berkeley Group*||Trading Update|
|Hammerson||Full Year Results|
*Companies on which we will be writing research.
ITV – Sophie Lund-Yates, Equity Analyst
There are two main things to watch for in next week’s full year results. The first is the extent of revenue and margin dilution caused by higher costs and production delays in the Studios business. Extended lockdowns since last quarter means the recovery is probably being delayed even further than expected. This division is an increasingly important part of ITV’s future, as it tries to pivot away from relying on advertising revenues.
The second flashpoint will be those advertising revenues, which have been hit hard by reduced marketing spending in the pandemic. Broadcast revenue fell 13% for the first nine months of the year, to £1.3bn. ITV said this trend should start to recover in the fourth quarter, if lockdown ended as planned in early December. As we all know, that didn’t happen.
While the core divisions continue to battle uncertainty, we’ll also be keeping an eye on net debt and total liquidity. These stood at £775m and £1.2bn respectively at the last count. We don’t have immediate concerns over the group’s financial position at this stage. But with revenue and profits taking a hit, it’s something to keep an eye on.
Ibstock – Nicholas Hyett, Equity Analyst
Ibstock’s most recent trading update reported “improving market trends” with “solid clay brick sales volumes, and concrete sales volumes modestly ahead of prior year levels”. While we know the year as a whole is still going to show a significant decline in revenues, down around 23% compared with 2019, the important question is what happens to margins going forwards.
With significant cost saving initiatives completed during the year, the group should be well placed to capitalise on any recovery. However, having mothballed some of its older factories during the peak of the pandemic, and with some uncertainty about the economic outlook, the question is really how strong that recovery can be.
Rolls Royce – Sophie Lund-Yates, Equity Analyst
There’s no doubt it’s been a tough year for Rolls Royce, the question is whether it was even worse than expected.
Rolls Royce hoped widebody engine flying hours would rise to 55% of 2019 levels by the end of the year. But an unexpected round of further restrictions means we’d expect to see that forecast downgraded. Long-haul travel looks likely to be disrupted well into summer. We’d like to know what that means for management’s target of turning free cash flow positive in the second half.
Progress on the group’s massive restructuring plans is something else to watch, with 9,000 redundancies underway as part of a £1.3bn cost saving target. The shuffle also includes a target to generate more than £2bn from disposals – the sale of Rolls’ civil nuclear instrumentation and control business being one. The only question now is what will be next to go and whether too much trimming could cost the group future growth.
Unless otherwise stated estimates are a consensus of analyst forecasts provided by Refinitiv. These estimates are not a reliable indicator of future performance. Past performance is not a guide to the future. Investments and income they produce can rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Non-independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place (including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing. Please see our full non-independent research disclosure for more information.
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