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FTSE 350 look ahead: Fresnillo, Flutter Entertainment, Intertek


Hargreaves Lansdown look ahead to the FTSE 350 companies reporting from 1 to 5 March

  • Fresnillo, the world’s largest silver miner has struggled to regain its lustre
  • Flutter Entertainment results likely to show betting has become even bigger business during the pandemic
  • Intertek looks to make the most of a tough year
  • Persimmon investors will be keen to find out how stamp duty changes might affect business.
  • DS Smith could report a brighter outlook for its key North European markets
  • The easing of restrictions could dent Entain’s revenues as customers turn to other forms of entertainment
  • Vistry’s strong second half could outweigh a poor performance during the first lockdown.

Fresnillo Full Year Results, Tuesday 2 March

Susannah Streeter, senior investment and markets analyst notes Fresnillo [LON:FRES], the world’s largest silver miner and Mexico’s largest gold producer has really struggled to regain its lustre. The company looked as though it would shine again as the pandemic took hold with the precious metals seen as defensive assets, soaring in value. But the company wasn’t been able to fully capitalise on the rise in the value of silver and gold as its been beset by production problems in Mexico, with workers struck down by Covid. Delays to inspections has also put back the licensing of the new gold and silver Pyrites plant in Mexico which has proved another setback. A spike in Fresnillo’s share price at the start of February was prompted by Reddit investors who piled in to silver to upset hedge fund positions but that proved short lived and the forecast of lower gold output has been the main rub for the share price. The prospects of higher inflation down the road, given the huge stimulus programmes of central banks and rescue spending packages by governments, could see yet another resurgence in demand for gold and silver and interest in the miner, if its production issues can be surmounted.’’

Flutter Entertainment, Full Year Results, Tuesday 2 March

Susannah Streeter, senior investment and markets analyst comments “Betting has become even bigger business during the pandemic, as lockdowns and travel restrictions forced people to find new entertainment at home. Flutter Entertainment [LON:FLTR] which owns BetFair, PaddyPower and SkyBet brands upgraded its underlying profit forecast after sports resumed and betting shops opened again with Flutter estimating it scooped up around half of bets made on football league matches. Further lockdowns are likely to have hit its retail business of 620 Paddy Power shops but Flutter is stepping up its online reach and focusing on accelerating growth in the US, where even more states are expected to legalise sports betting. Investors are likely to be keeping a close eye on margins as promotional deals to win market share could bite into profits. The spectre of greater regulation in the UK is hanging over the sector with affordability checks for customers who lose £100 or more a month, one option on the table. These proposals may end up being watered down, but with concerns about problem gambling mounting, the industry is bracing itself for tougher rules ahead’’

Intertek,  Full Year Results, 2 February

Nicholas Hyett, equity analyst says “Intertek’s [LON:ITRK] actually struggled more than we might have expected this year, with revenues falling 7.3% in the first three quarters. The testing and quality assurance group provides crucial services to the natural resources sector, and in manufacturing and trade. All three have been hit hard by the economic disruption caused by coronavirus – although sales trends have improved after hitting a low in May and June last year. Management’s guidance for a mid-single digit decline in full year sales suggests a further improvement in the final quarter. We would consider that a positive result given the increased restrictions on global economies. Together with a balance sheet that looks set to be stronger at the end of 2020 than it was at the end of 2019 – that might help investors look back on 2020 as a difficult but ultimately successful year.”

Persimmon, Full Year Results, Wednesday 3 March

Steve Clayton, Manager of HL Select funds notes “Investors will be keen to hear  Persimmon’s [LON:PSN] views about how stamp duty changes will impact, and whether cladding rectification costs can still be contained. All-important though will be guidance on the group’s future capital return plans. As a second sentence: So far, consumers have been keen to keep moving, ever since the original lockdown restrictions were eased back in the summer. Keeping this momentum going forward will be critical in meeting expectations for the current year.”

DS Smith,  Q3 Trading Statement, Wednesday 3 March

Sophie Lund-Yates, Equity Analyst comments “DS Smith’s [LON:SMDS] revenues and profits have been hurt by the pandemic. It has exposure to the industrial and hospitality sectors, which together with pressure on pricing meant pre-tax profit fell 55% to £97m in the first half. And it’s pricing we’ll be focussing on next week. Trends started to improve in the second quarter. But since then much of the world re-entered lockdowns, which could re-apply pressure. That would put a lid on revenues. It also makes the outlook statement an important read. There’s a glimmer of light at the end of the lockdown tunnel, as vaccine roll outs gather pace in key North European markets which accounts for 39.7% of revenue. That means we might hear more positive expectations for trading in the final quarter. We’ll also be paying close attention to the resilience of DS Smith’s other customers. It has exposure to e-commerce, consumer and food groups. These have held up well during the pandemic, and we have no reason to suspect this trend has changed. We’ll be interested to see how well they’ve fared in the third quarter.”

Entain, Full Year Results, Thursday 4 March

Susannah Streeter, senior investment and markets analyst says “The transatlantic love affair between US casino giants and the UK betting industry lost intensity after Entain [LON:ENT] rebuffed MGM’s takeover bid. Losing its CEO in quick succession rattled investor nerves but some upbeat results in the third quarter had a calming effect. The 130% increase in US online revenues jumped out, showing just how valuable the BetMGM partnership is and how Entain now has a major foothold in the online sports betting arena. It also adds to evidence that Entain’s board may have been justified in arguing the MGM offer significantly “undervalued” the group. During the pandemic there has been a surge in online betting activity and fresh lockdowns are likely to have continued that trend. Looking ahead, the easing of restrictions could dent revenues as customers turn to other forms of entertainment, but sports events coming back to stadiums should help keep growth on track.’’

Vistry, Full Year Results, Thursday 4 March

Laura Hoy, equity analyst comments “The third national lockdown had no material impact on Vistry’s [LON:VTY] performance in the second half. The group’s underlying sales rate rose 20% during the final 6 weeks of the year. That suggests Vistry could make good on its forecast for full-year pre-tax profits of roughly £140m. Provided there are no unexpected knocks to trading, Vistry is also expected to announce a “modest” final dividend. However, we could see the group’s full-year private sales rate normalise. This rose to 0.62 homes per outlet, per week in the second half. That’s because  second-half performance was likely boosted by pent up demand from the first lockdown. Still, management has been optimistic about its prospects for 2021. It’s expecting completions to remain strong despite challenges related to the revamped Help to Buy scheme and the end of the nation’s Stamp Duty Holiday. We’re keen to see how much progress has been made on completions so far this year.”

See all FTSE 350 results from 1st to 5th March 2021

1st March

  • Aggreko Full Year Results
  • Bunzl Full Year Results

2nd March

  • Ashtead* Q3 Results
  • Croda Full Year Results
  • Flutter Entertainment Full Year Results
  • Fresnillo Full Year Results
  • Intertek* Full Year Results
  • James Fisher and Sons Full Year Results
  • Man Group Full Year Results
  • Rotork Full Year Results
  • Signature Aviation Full Year Results
  • Taylor Wimpey* Full Year Results
  • Travis Perkins Full Year Results
  • Weir Full Year Results
  • XP Power Full Year Results

3rd March

  • Avast Full Year Results
  • Biffa Pre-Close Trading Statement
  • DS Smith* Q3 Trading Statement
  • Hiscox Full Year Results
  • PageGroup Full Year Results
  • Persimmon* Full Year Results
  • Polymetal Full Year Results
  • Prudential* Full Year Results
  • Vivo Energy Full Year Results

4th March

  • Admiral Full Year Results
  • Aviva* Full Year Results
  • Coats Full Year Results
  • CRH Full Year Results
  • Entain* Full Year Results
  • John Laing Group Full Year Results
  • Meggitt Full Year Results
  • Melrose Industries* Full Year Results
  • Morgan Advanced Materials Full Year Results
  • Rathbone Brothers Full Year Results
  • Rentokil Full Year Results
  • Schroders Full Year Results
  • Synthomer Full Year Results
  • Vesuvius Full Year Results
  • Vistry* Full Year Results
  • William Hill* Full Year Results

5th March

  • ConvaTec Full Year Results
  • Essentra Full Year Results
  • London Stock Exchange Group Full Year Results


This article is 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.

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

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