Companies Reporting: Ashtead, Frasers, Berkeley Group

Our regular look at the FTSE 350 and a selection of other companies reporting from 04 – 08 Dec.

• Can Ashtead bounce back after a rare earnings downgrade?
• Frasers new brands can help elevate it to new heights
• Berkeley will be looking to build on a solid start to the year

Ashtead LON:AHT Q2 Results, Tuesday 5 December

Matt Britzman, lead equity analyst, Hargreaves Lansdown: “Fresh off the back of a rare earnings downgrade, Ashtead heads into half-year results with a point to prove. Less natural disasters, and the writers’ and actors’ strikes lasting longer than expected, have dampened demand for the construction and industrial equipment that Ashtead rents out. Investors will be keen to get more reassurances that these events are contained to this year – something analysts believe to be the case.

Longer term, demand for Ashtead’s equipment should remain resilient, especially with a continued positive outlook for mega projects in the US. The bigger players like Ashtead have an advantage in the fragmented industry. That scale and expertise should place it well to be a key supplier for some of the mega projects over the pond.”

Frasers LON:FRAS Half Year Results, Thursday 7 December

Aarin Chiekrie, equity analyst, Hargreaves Lansdown: “Frasers’ growth in recent times has largely been due to its acquisitions of other brands, helping last year’s revenue rise 15.8%, to £5.6bn. The group’s so-called “elevation strategy” calls for new flagship stores, displaying products in a more flattering and digitally integrated environment. Early signs from a couple of recently built flagship stores look promising, but they don’t contribute enough to group performance yet to really move the dial.

There’s a serious amount of execution risk which comes with this strategy – the structural decline of brick-and-mortar stores is a force to be reckoned with. Add to that the cost-of-living crisis that consumers are wrestling with, and Frasers has a lot to contend with. Group CEO, Michael Murray, had previously said that trading in the new financial year started well, especially at Sports Direct. Investors will be looking for any early signs that Frasers’ customers are feeling the pinch in next week’s results, and whether the £500-550m full-year pre-tax guidance remains intact.”

• UK Stock Market News: Berkeley, Pipehawk, Target Healthcare REIT
• Companies Reporting: Berkeley, Persimmon, Halma, L&G

Berkeley Group LON:BKG Half Year Results, Friday 8 December

Aarin Chiekrie: “Berkeley’s underlying private sales reservations were down 35% in the first four months of its financial year. But, because of the tight supply of homes on the market, as well as the group’s London focus and higher-end product, pricing has remained relatively resilient so far. That gave Berkeley the confidence to reiterate guidance to deliver total pre-tax profit of £1.05bn over this year and next.

While Berkeley’s in a robust financial position, the housing market’s sitting on shaky ground. High mortgage costs have caused a relative lack of urgency among buyers, and that’s not something analysts expect to turn around quickly. Next week’s results should give some insight into the current level of build-cost inflation, with any cooling here likely to provide a welcome relief to margins.”

This article has been brought to you in association with Hargreaves Lansdown. All opinions expressed in this article are from the analysts and do not necessarily represent the opinions of The Armchair Trader.

FTSE 100, FTSE 250 and selected other companies scheduled to report