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FTSE 350 look ahead: ITV, Ibstock, Inditex, Rolls Royce, W M Morrison Supermarkets


Hargreaves Lansdown look ahead to the FTSE 350 companies reporting from 8 to 12 March

  • ITV’s Studios business will reveal the effects of further lockdowns
  • Trends are improving at Ibstock but how strong any recovery will be is still unclear
  • Zara owner Indidex will show how its fared through the lockdown
  • We’ll see whether a slower-than-expected recovery in travel quashed Rolls Royce’s free cash plans
  • Morrisons will be nursing its ego after being booted out of the FTSE 100 in the latest reshuffle

ITV [LON:ITV], Full Year Results, 9 March

Sophie Lund-Yates, equity analyst

“There are two main things to watch for in next week’s full year results. The first is the extent of revenue and margin dilution caused by higher costs and production delays in the Studios business. Extended lockdowns since last quarter means the recovery is probably being delayed even further than expected. This division is an increasingly important part of ITV’s future, as it tries to pivot away from relying on advertising revenues. The second flashpoint will be those advertising revenues, which have been hit hard by reduced marketing spending in the pandemic. Broadcast revenue fell 13% in the third quarter, to £1.3bn. ITV said this trend should start to recover in the fourth quarter, if lockdown ended as planned in early December. As we all know, that didn’t happen. While the core divisions continue to battle uncertainty, we’ll also be keeping an eye on net debt and total liquidity. These stood at £775m and £1.2bn respectively at the last count. We don’t have immediate concerns over the group’s financial position at this stage. But with revenue and profits taking a hit, it’s something to keep an eye on.”

Ibstock [LON:IBST], Full Year Results, 10 March

Nicholas Hyett, equity analyst

“Ibstock’s most recent trading update reported “improving market trends” with “solid clay brick sales volumes, and concrete sales volumes modestly ahead of prior year levels”. While we know the year as a whole is still going to show a significant decline in revenues, down around 23% compared with 2019, the important question is what happens to margins going forwards. With significant cost saving initiatives completed during the year, the group should be well placed to capitalise on any recovery. However, having mothballed some of its older factories during the peak of the pandemic, and with some uncertainty about the economic outlook, the question is really how strong that recovery can be.”

Inditex [LON:ITX], Full Year Results, 10 March

Susannah Streeter, senior investment and markets analyst

“Inditex is a fashion powerhouse, masterminding the largest retail fashion chain in the world. Lockdowns have been a major headache but the sales gap caused by store closures is closing. It’s target for online to account for a quarter of all sales by next year should help improve things further even if restrictions take longer to ease than expected. As the shift to digital accelerates, 1,200 stores worldwide will close as smaller shops are shut and flagship shops extended. A sophisticated integration of physical and virtual stores will be crucial to boosting profitability and its tight supply chain will see it in good stead. It can react quickly to fickle fashion tastes without tying up lots of money in excess stock. Its digital inventory model also tracks stock efficiently, reducing processing time and costs. Quick style turnaround times means Zara, its superstar brand, has sharp fashion credentials and a loyal following of fashion fans. However, it’s seen as more of a premium brand on the high street and with a shaky economic forecast in many key markets, there is a risk cash strapped customer will drift off to cheaper rivals.”

Rolls Royce [LON:RR], Full Year Results, 11 March

Laura Hoy, equity analyst

“There’s no doubt it’s been a tough year for Rolls Royce, the question is whether it was even worse than expected. Rolls Royce hoped widebody engine flying hours would rise to 55% of 2019 levels by the end of the year. But an unexpected round of further restrictions means we’d expect to see that forecast downgraded. Long-haul travel looks likely to be disrupted well into summer. We’d like to know what that means for management’s target of turning free cash flow positive in the second half. Progress on the group’s massive restructuring plans is something else to watch, with 9,000 redundancies underway as part of a £1.3bn cost saving target. The shuffle also includes a target to generate more than £2bn from disposals—the sale of Rolls’ civil nuclear instrumentation and control business being one. The only question now is what will be next to go and whether too much trimming could cost the group future growth.”

W M Morrison Supermarkets [LON:MRW], Full Year Results, 11 March

Susannah Streeter, senior investment and markets analyst

“Morrisons will be nursing its ego after being booted out of the FTSE 100 in the latest reshuffle. Although it has edged a tiny step forward in market share to take a 10.3% slice in the 12 weeks to February 21st, it’s still seen as the underdog snapping at the heels of Tesco, J Sainsbury and Asda. However it still has managed to deliver a 13.9% rise in sales over three months and customers are briskly filling up virtual shopping baskets as demand for delivery slots has sky rocketed. Although online sales are still significantly behind its rivals, there is room for rapid growth.  The conversion of 300 more McColls convenience stores to the Morrison Daily format could help boost future revenues, given this sector has held up particularly well over the past year. But it will be wise to keep a close eye on margins as the pile it high sell it cheap approach could keep a lid on profits.”


  • Clarkson Full Year Results
  • Direct Line Group* Full Year Results
  • Diversified Gas & Oil Full Year Results
  • Network International Full Year Results
  • Pearson* Full Year Results
  • Phoenix Group Full Year Results
  • RHI Magnesita Full Year Results


  • Cairn Energy Full Year Results
  • Capital & Counties Full Year Results
  • Deutsche Post* Full Year Results
  • Domino’s Pizza Group Full Year Results
  • Gamesys Full Year Results
  • ITV* Full Year Results
  • IWG Full Year Results
  • Keller Group Full Year Results
  • M&G* Full Year Results
  • Standard Life Aberdeen Full Year Results
  • TP ICAP Full Year Results
  • Ultra Electronics Full Year Results


  • Balfour Beatty* Full Year Results
  • CLS Holdings Full Year Results
  • FDM Group Full Year Results
  • Ibstock* Full Year Results
  • Inditex* Full Year Results
  • IP Group Full Year Results
  • Just Eat Full Year Results
  • Legal & General* Full Year Results
  • National Express Full Year Results
  • Quilter Full Year Results
  • Spirax-Sarco Full Year Results
  • Tullow Oil* Full Year Results


  • Derwent London Full Year Results
  • Helios Towers Full Year Results
  • IG Group Q3 Trading Statement
  • Just Group Full Year Results
  • Marshalls Full Year Results
  • Playtech Full Year Results
  • Rolls-Royce* Full Year Results
  • Savills Full Year Results
  • Spirent Communications Full Year Results
  • WM Morrison Supermarkets* Full Year Results
  • WPP* Full Year Results


  • Berkeley Group* Trading Update
  • Hammerson 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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