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Companies Reporting: Easyjet and Pennon Group

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Our regular look at the FTSE 350 and a selection of other companies reporting from 28 November – 2 December 2022

  • Easyjet capacity over peak travel seasons will be in the spotlight
  • How will Pennon Group tackle high inflation?

Easyjet, Full Year Results, Tuesday 29 November

Sophie Lund-Yates, Lead Equity Analyst “EasyJet have been expecting capacity over the October half-term and Christmas to be back at pre-pandemic levels. Next week investors will find out if this was a fair prediction. This will be a crucial barometer for the group’s performance over the next year. Many are cautiously optimistic it can reach this target.

The other thing that will be monitored is the scale of full year losses. These are expected to come in between £170m and £190m, owing to adverse exchange rates and disruption and cancellations in the third quarter. A worse-than-expecting showing on this front won’t be well received by the market.

Finally, it’s forward bookings will be closely watched. With the cost-of-living crisis weighing on people’s spending power, and the pent-up demand from the pandemic unwinding, it’s wondered if easyJet’s likely to report a weakening of demand. The group’s stronger brand and proposition hold it in a better position than others, but it’s still something to be mindful of.”

Pennon Group, Half Year Results, Wednesday 30 November

Matt Britzman, Equity Analyst, “Pennon provides water and wastewater services to around 3.5m people in South West England. Recent performance has benefitted from improved non-household demand and the hybrid work-from-home model keeping household demand elevated. Whether these are longer term trends remains to be seen, next week’s half year results should shed further light.

Last year’s Bristol Water acquisition came with a big price tag, and many have already started to see glimpses of the benefits it could bring. Bristol Water’s initial performance was better than Pennon had expected. Investors are interested to see how the debt profile is looking in light of rising prices, given that around half of Bristol Waters debt is index-linked. This means that the interest rate rises with inflation.  That extends to the wider business too, all in there’s about £2.8bn in index linked debt to service. Though it’s worth remembering, the majority of the impact will be non-cash charges based on how the debt is accounted for.”

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

28-Nov
Home REIT Full Year Results
29-Nov
Easyjet Full Year Results
Redrow Full Year Results
Shaftesbury Full Year Results
30-Nov
Future Full Year Results
Pennon Group Half Year Results
01-Dec
AJ Bell Full Year Results
Auction Technology Group Full Year Results
02-Dec
No FTSE 350 reporters

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This article does not constitute investment advice. Do your own research or consult a professional advisor.

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