What to expect from a selection of FTSE 100, FTSE 250 and selected other companies reporting next week:
- Road ahead looks promising for Auto Trader
- Can B&M strike the right balance between value and profit?
- Pennon hoping to hit full-year guidance despite regulatory run-ins
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FTSE 100, FTSE 250 and selected other stocks scheduled to report next week:
| 29-May | |
|---|---|
| No FTSE 350 Reporters | |
| 30-May | |
|---|---|
| No FTSE 350 Reporters | |
| 31-May | |
|---|---|
| B&M European Value Retail | Q4 Results |
| 01-Jun | |
|---|---|
| Dr Martens | Full Year Results |
| Pennon Group* | Full Year Results |
| Auto Trader Group | Full Year Results |
| 02-Jun | |
|---|---|
| No FTSE 350 Reporters | |
*Events on which we will be updating investors.
Auto Trader – Matt Britzman, Equity Analyst
The consensus amongst analysts is for second-half performance to be broadly in line with the first, with revenue at or around £500m and operating profit of £275m. This would mark continued strong performance, which is a function of Auto Trader’s enviable recurring revenue, strong pricing power, and highly profitable model.
The Autorama acquisition is a drag on Group performance for now, but operating margin in the core business remains strong – expected to be north of 70%. Expanding a foothold in the online leasing market looks like a decent play, supply challenges have held back performance this year - but it’s a market with scope to grow. Expansion is a trend we expect to see more of, as Auto Trader looks for growth levers and ways to further digitise the car buying journey.
See the Auto Trader share price, charts and our latest view
B&M European Value Retail - Derren Nathan, Head of Equity Research
The strong momentum seen in B&M’s ‘Golden’ third quarter prompted the Company to narrow its guidance range for the full year results to be reported next week. Underlying cash profits are now expected to land somewhere between £560m to £580m. With inflation continuing to bite we’re not surprised to see B&Ms value focussed stores doing well. B&M stores in the UK make up the majority of Group revenues, and these have seen solid trading of late, but the Heron Foods convenience stores, and B&M France have been enjoying even greater growth.
It’s a fine balance between keeping prices competitive, and leaving a reasonable slice of revenues for the bottom line. Analysts are expecting some operating margin pressure, with forecasts suggesting a fall from 12.9% to 11.0%. At the half year point debt levels didn’t look too worrying, but we’d like to see continued strength in cash generation so as to support ongoing dividend payments and store openings.
See the B&M European Value Retail share price, charts and our latest view
Pennon – Aarin Chiekrie, Equity Analyst
Last we heard, Pennon’s on track to deliver full-year results in line with management’s expectations, guiding for lower revenues and higher costs across the second half. Analysts expect full-year revenues of around £806m and operating profit of around £157m.
It’s worth remembering that water utility companies have recently been in the news for the wrong reasons. Consistently pumping untreated sewage back into rivers has stoked anger among the public. That’s not gone unnoticed by regulators, who have already issued fines of over £2m to South West Water, which Pennon owns. If the group doesn’t clean up its act, the regulator could come down even more harshly on them, potentially imposing unlimited fines. We’ll keep an eye out for any steer on how the group intends to improve its pollution performance and help avoid future run-ins with the regulator.
See the Pennon share price, charts and our latest view
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 rise and fall in value so investors could make a loss.
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