Among those currently scheduled to release results next week:
14-Sep | |
|---|---|
HgCapital Trust | Half Year Results |
RTW Biotech Opportunities | Half Year Results |
15-Sep | |
|---|---|
Harworth Group | Half Year Results |
Kier Group | Full Year Results |
Princes Group | Half Year Results |
Trustpilot | Half Year Results |
Wickes | Half Year Results |
16-Sep | |
|---|---|
Babcock* | Trading Statement |
Barratt Redrow* | Full Year Results |
Moonpig | Trading Statement |
Supermarket Income REIT | Full Year Results |
17-Sep | |
|---|---|
Next* | Half Year Results |
18-Sep | |
|---|---|
Investec | Trading Statement |
Babcock hoping to make more progress on margins
Babcock International’s trading statement next week should offer some key insight into its recent contract wins. While full-year guidance was characteristically light on detail, management pointed to good progress across the business and highlighted strong revenue visibility. The key question now is whether rising global tensions have driven customers to accelerate defence spending plans, potentially improving the near-to-medium-term outlook.
Margins remain a key watchpoint. Excluding a one-off charge related to its Type 31 shipbuilding programme, underlying operating margins improved to 8.2% last year. And with activity on key contracts ramping up, we expect the group to progress further towards its medium-term target of at least 9%. Strong cash generation and a modest debt burden also gives Babcock the financial flexibility to support growth through acquisitions, and management’s currently reviewing its options. In the meantime, excess cash is being returned to shareholders through a £200mn share buyback programme, which we're hoping remains on track to complete by year-end.
New Barratt Redrow CEO looking to get his house in order
Barratt Redrow reports its full-year results next week, marking a busy start to life as CEO for Dean Banks, who only stepped into the role at the beginning of September. We’ve already heard that new home completions were toward the top end of guidance, up 5% to 17,667, driven by higher volumes of affordable housing. As a result, adjusted operating profits are expected to land in line with market expectations of around £560mn.
Much more important though will be the outlook for the new year. New home completions had been expected to rise slightly, but with market conditions deteriorating in recent months, we see scope for building activity to be reined back a touch. Alongside elevated buyer incentives and rising building costs, we’re keen to hear how much pressure that’s expected to put on profitability. A strong balance sheet should help Barratt to navigate a challenging market, and we expect restrained land spending to help protect that position until conditions improve.
Next proving it’s a strong outfit in a challenging retail environment
There shouldn’t be too many surprises in Next’s half-year results. We’ve already heard that full-price sales growth has accelerated over the period, with second-quarter growth of 9.2% landing well ahead of market expectations. International markets did a lot of the heavy lifting, benefitting from pent-up demand in the Middle East and Northern Europe. Despite a tough consumer backdrop in the UK, hotter-than-expected weather and more effective marketing saw many customers refresh their summer wardrobes.
The strong start to the year led to a modest upgrade to full-year guidance, with pre-tax profits now expected to grow by 7.3% to £1.2bn. That implies a slowdown in full-price sales over the second half as it laps a tougher comparable period. However, we think that outlook is overly cautious given Next’s core middle-aged and middle-income customers are proving relatively resilient in the current economic climate. As a result, we wouldn’t rule out further small guidance upgrades over the second half.
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