Among those currently scheduled to release results next week:
23-Sep |
|---|
No FTSE 350 Reporters |
24-Sep | |
|---|---|
AG Barr | Half Year Results |
Smiths Group | Full Year Results |
SThree | Q3 Trading Statement |
TUI* | Q4 Trading Statement |
25-Sep |
|---|
No FTSE 350 Reporters |
26-Sep | |
|---|---|
CVS Group* | Full Year Results |
Halma* | Trading Statement |
JD Sports Fashion* | Half Year Results |
Pennon Group* | Trading Statement |
27-Sep | |
|---|---|
Ceres Power Holdings | Half Year Results |
Is demand picking up again for CVS Group’s veterinary services?
We’re not expecting too many surprises in next week’s full-year results from veterinary services provider CVS Group. The July trading update pointed to a slowdown in full-year organic growth from 7.3% to 2.9% after the impact of a disruptive cyber security incident and weaker demand in the UK.
That was put down to a squeeze on consumers and wider publicity around the sector, presumably referring to the ongoing investigation by the Competition and Markets Authority. We’ll be keen to hear how demand is faring in the new financial period as this seems an unlikely reason to delay medical attention for our beloved pets. We’re not expecting the CMA to present any findings until at least next April.
We’ll also be looking out for an update on the performance of recent acquisitions and how the deal pipeline is shaping up, particularly in Australia which is currently the focus of CVS Group’s expansion plans.
JD Sports will be hoping to remain on the front foot in the second half.
After a challenging period of volatile conditions and guidance downgrades, JD Sports got back on the front foot in the second quarter as sales rose 8.3% organically. All regions posted growth in the period, with North America seeing the biggest uplift at 13.7%.
Despite the positive momentum structural growth opportunities in the sports apparel market, JD Sports remains cautious about the outlook for the rest of the year. The recently completed acquisition of Hibbett expands JD’s presence in North America by 1,179 stores, and we’re keen to hear how the integration’s progressing in next week’s half-year results. Full-year guidance was still on track last we heard, with management expecting pre-tax profits to land in the £955-1,035mn range on a pre-Hibbett basis.
TUI to update on trading over the crucial summer holiday season.
TUI is a one-stop shop for holidaymakers, and business has been booming so far this year. Revenue in the third quarter rose to a record €5.8bn, supported by higher volumes and prices as consumers continue to prioritise travel. Profits in all divisions rose, helping total underlying operating profit jump 37% to €232mn in the period.
Demand in the near term looks solid, but a challenging economic backdrop means it’s difficult to accurately map the demand picture further out. Net debt levels have been trending lower and further progress could move the company a step closer to resuming dividends, but there are no guarantees. Strong booking momentum ahead of the vital summer trading period wasn’t enough for an upgrade to guidance. Next week’s trading update should give us some insight into where full-year profits will land, with the full-year operating profit growth target of 25% looking well within reach to us.
The author holds shares in TUI.
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