Our regular look at the FTSE 350 and other companies reporting from 23 – 27 September.
- TUI to update on trading over the crucial summer holiday season
- Is demand picking up again for CVS Group’s veterinary services?
- JD Sports will be hoping to remain on the front foot in the second half
TUI, Q4 Trading Statement, Tuesday 24 September
Aarin Chiekrie, equity analyst, Hargreaves Lansdown: TUI [LON: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. 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 some insight into where full-year profits will land, with the full-year operating profit growth target of 25% looking well within reach.
CVS Group, Full Year Results, Thursday 26 September
Derren Nathan, head of equity analysis, Hargreaves Lansdown: Markets aren’t expecting too many surprises in next week’s full-year results from veterinary services provider, CVS Group LON:CVSG. 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. Analysts will 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. Markets aren’t expecting the CMA to present any findings until at least next April.
Investors will 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, Half Year Results, Thursday 26 September
Aarin Chiekrie: After a challenging period of volatile conditions and guidance downgrades, JD Sports LON:JD. 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%.
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Despite the positive momentum of 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 investors are keen to hear how the integration’s progressing in next week’s half-year results. Full-year guidance was still on track last markets heard, with management expecting pre-tax profits to land in the £955-1,035mn range on a pre-Hibbett basis.
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
Monday 23-Sep | |
No FTSE 350 Reporters | |
Tuesday 24-Sep | |
AG Barr LON:BAG | Half Year Results |
Smiths Group LON:SMIN | Full Year Results |
SThree LON:STEM | Q3 Trading Statement |
TUI [LON:TUI] | Q4 Trading Statement |
Wednesday 25-Sep | |
No FTSE 350 Reporters | |
Thursday 26-Sep | |
CVS Group LON:CVSG | Full Year Results |
Halma LON:HLMA | Trading Statement |
JD Sports Fashion LON:JD. | Half Year Results |
Pennon Group LON:PNN | Trading Statement |
Friday 27-Sep | |
Ceres Power LON:CWR | Half Year Results |