Next week on the stock market

Takeover speculation grabbed headlines back in March, but Currys’ shares took a dip on hearing that both interested parties were backing out of talks.

Currys' performance has been underwhelming in recent times. Consumers are simply struggling to justify discretionary spending on TVs, computers and gadgets. On the plus side record credit adoption in the UK & Ireland has boosted service revenue. Meanwhile the prospect of falling inflation and UK interest rate cuts, gives some hope that these headwinds could subside.

Key to convincing the market that takeover offers had undervalued the business will be a continued recovery in the Nordics. We’ll be keen to hear how performance is shaping up in its second largest territory and what Currys is expecting to deliver in the coming year.

Back in February, we heard that United Utilities’ Outcome Delivery Incentives (ODIs) are expected to come in at around £40mn this year. That’s roughly £25mn lower than prior group expectations as exceptionally wet weather weighed on performance. ODIs are bonuses for delivering above and beyond committed levels of service to customers. Despite the lower ODIs, there were no material changes to full-year guidance, so when the group reports results next week, revenue is expected to rise by around £150mn from last year’s base of £1.8bn. This should more than offset an expected £60mn increase in underlying operating costs.

We’re also keen to get an update on cash levels and general balance sheet health given sector concerns after the Thames Water fiasco. United Utilities has ambitious £13.7bn plans to expand and upgrade its assets between 2025-2030, which will require issuing new debt and pushing debt levels towards the top end of its target range.

Vodafone’s recent third-quarter results provided some optimism for investors to cling to, but wider issues remain. With the sales of both the Spanish and Italian businesses, Vodafone needs to reset expectations. Management has already warned investors that the dividend will be halved for the coming year, given the smaller operation. Next week’s full-year results and guidance for the coming year should shed light on what the leaner organisation will be able to deliver.

The key German market is a perfect example of the challenges at hand. After more than €20bn of investment, growing service revenue and customer numbers is proving a challenge. We’ll be keen to hear any updates on current regulatory changes that mean Vodafone needs to recontract over 8.5mn customers (c. €800mn in revenue).

The portfolio reshuffle and its increased focus on better-performing assets look like positive evolutions. But with growth hard to come by, markets will need to see sustained progress before getting too excited.