Among those currently scheduled to release results next week:
15-Jun | |
|---|---|
No FTSE 350 Reporters |
16-Jun | |
|---|---|
No FTSE 350 Reporters |
17-Jun-Jun | |
|---|---|
AO World | Full Year Results |
18-Jun | |
|---|---|
FirstGroup | Full Year Results |
Foresight Environmental Infrastructure | Full Year Results |
Syncona | Full Year Results |
Tesco* | Q1 Trading Statement |
Whitbread* | Q1 Trading Statement |
XPS Pensions Group | Full Year Results |
19-Jun | |
|---|---|
No FTSE 350 Reporters |
Whitbread – Derren Nathan, Head of Equity Research
Whitbread’s first quarter got off to a reasonable start with total UK accommodation sales for Premier Inn up around 1.9% in the eight weeks to 23 April, split broadly evenly between organic growth and new room space. Forward bookings have also been positive, but with UK cost inflation nudging 4%, this year’s margins are under pressure. There’s evidence to suggest international visitors to London hotels are starting to feel the effects of disruption from the Middle East conflict. While Whitbread is likely to feel this less than the competition, any slowdown is likely to disappoint.
The younger Germany division had a stronger start to the quarter with accommodation sales up 9% despite a relatively empty events calendar, but with Germany trading only just above breakeven, it's still UK performance which will be the key driver of this year’s results. As things stand, analysts expect revenue to fall 1% to £2.9bn, with inflation amplifying the pressure on operating profit, which is forecast to decline 8% to £0.6bn.
Tesco – Aarin Chiekrie, Equity Analyst
Tesco remains the largest supermarket in the UK, with further market share gains helping retail sales rise by 4.3% to £66.6bn last year. Despite slimmer profit growth as higher employment costs squeezed margins, free cash flows landed well ahead of market expectations, and the group’s ploughing ahead with its current £0.8bn share buyback programme.
Next week’s first-quarter update should see sales continue to trend higher. Although we expect the pace of growth to slow as the year progresses, driven by elevated oil prices putting pressure on consumers' budgets and forcing more downtrading into cheaper private-label goods. But Tesco’s huge scale should help it to negotiate hard with suppliers and keep prices competitive, giving them little reason to look elsewhere. If operations can be streamlined as expected, there could still be some upside to the group’s cautious full-year guidance, which points to underlying operating profits of £3.0-3.3bn.
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