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Reporting next week: Imperial Brands, Vodafone, Kingfisher, Royal Mail

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Here’s what you can expect from a selection of FTSE 100 and FTSE 250 companies reporting next week. Among those currently scheduled to release results:

  • Avoiding a summer wash out will be crucial for Ryanair
  • Investors will be looking for reassurance over execution at Imperial Brands
  • Vodafone will show us what the balance sheet looks like post Vantage IPO
  • Investors in Experian will now be eager for an update on future sales growth
  • Future will update us on how the integration of GoCo is faring
  • easyJet will reveal whether it’s got the firepower to claw back a summer travel season
  • B&Q owner Kingfisher will reveal if the DIY boom is continuing
  • Royal Mail will indicate how much investment it needs to meet demand
  • Close Brothers have demonstrated encouraging lending, but future bad debts will be important

Ryanair [LON:RYA], Full Year Results, 17 May

Susannah Streeter, senior investment and markets analyst

“These results won’t make pretty reading, given that Ryanair reported a €305.5m underlying loss in the third quarter, and there has been little relief for the hard-hit travel industry. Ryanair was banking on a vaccine led recovery to save the summer season but the limited number of green light destinations on the holiday list so far will be highly disappointing. Although Ryanair is used to belt-tightening, it is unlikely it will be able to withstand a further squeeze on revenues, if bookings don’t resume briskly over coming months the company may be forced to return to the market to drum up more financial support. Ryanair’s nimble low cost operations might give it the flexibility to adapt to short notice route and schedule changes but longer term there is a risk that social distancing desires will stick with customers preferring a roomier cabin to cheap seats, which could hurt its business model.’’

Imperial Brands [LON:IMB], Half Year Results, Tuesday 18 May

Steve Clayton, HL Select Fund Manager

“Investors will be looking for reassurance over execution when Imperial Brands reports its half year results on Tuesday. The group has lagged peers in its portfolio of potentially reduced risk products and has not shone in traditional tobacco products either in recent years. Imperial’s views on a proposed menthol ban in the States will also be sought by investors.”

Vodafone [LON:VOD], Full Year Results, Tuesday 18 May

William Ryder, Equity Analyst

“In its third quarter trading update Vodafone reiterated its guidance for €14.4bn to €14.6bn in underlying cash profits (EBITDA), which would be a slight fall from the €14.9bn recorded in 2020. Free cash flow is expected to be at least €5.0bn before spectrum and restructuring costs.  Since then the long-awaited Vantage Towers IPO has gone ahead on the Frankfurt Stock Exchange, and the spin off achieved a market capitalisation of €12.1bn. So far, Vodafone has raised €2.3bn from the deal, assuming all potential shares are sold. The group has since retired some debt, so we’ll be taking a close look at the balance sheet next week to see how everything has shaken out. Otherwise, we’ll be looking for further commentary on plans for the portfolio and guidance for 2022. In particular, if the summer tourism season is able to go ahead some roaming revenue should return, which could help revitalise sales growth.”

Experian [LON:EXPN], Full Year Results, Wednesday 19 May

Steve Clayton, HL Select Fund Manager

“Experian reports full year results on Wednesday 19 May. Earlier trading statements have told us that Experian has had a pretty successful FY21 and investors will now be eager for an update on how the group sees reopening of economies adding to sales growth. Strong cash generation should be pushing debt levels lower and investors will want to see a dividend hike and perhaps future plans for additional capital returns, if Experian cannot find deals to absorb its resilient cash flow.”

Future [LON:FUTR], Half Year Results, Wednesday 19 May

Sophie Lund-Yates, Equity Analyst

“Future expects full year underlying operating profit to be “materially” ahead of previous market expectations. That’s thanks to a strong performance from the Media division (70% of group revenue), in the first four months of the year. The group’s been buoyed by a shift to online advertising spending because of the pandemic, and strong eCommerce sales, and it’s reasonable to think these trends will have continued in next week’s half year results. Remember nothing’s guaranteed.  The Magazine business has fared a lot worse though. Both print and digital content revenue, and Print advertising, licensing and publisher services saw revenue fall 30% and 27% respectively last year. Covid has put more pressure on these areas of the business, so while performance has been in line with expectations, we’d like to see things haven’t deteriorated.

Future’s trying to diversify away from content and offer services too. That was behind the £594m acquisition of price comparison business, GoCo, which completed in February. A lot can go wrong when integrating an unfamiliar business into the fold, so we’ll be reading the update on how things are going with interest.”

easyJet [LON:EZJ], Half Year Results, Thursday 20 May

Sophie Lund-Yates, Equity Analyst

“We already know that passenger numbers will make for tough reading. The group’s results will cover the six months to the end of March, most of which were marred by strict travel restrictions throughout Europe. Instead, we’ll be focused on two important points: liquidity and future guidance. The latter should offer some insight into whether easyJet will get the summer travel season it so desperately needs. While passenger demand since the last update has almost certainly been muted, we’re keen to see what booking rates for later this year look like. We also wonder if easyJet will be paying to support customers. Expensive Covid tests could be a barrier to travel, and competitor Tui is subsidising some of those costs to entice passengers. That brings us to the second, and perhaps most important metric-liquidity. At the last check, easyJet had access to roughly £2.9bn, the result of loans and bond issues plus a huge cost-saving programme. That pool of cash will drain considerably as demand ramps up – it’s expensive to operate an airline, particularly when passenger numbers are lower than usual. So, we’ll be hoping the group can hold on to the bulk of its savings until the summer season begins.”

Kingfisher [LON:KGF], First Quarter Trading Statement, 20 May

Susannah Streeter, senior investment and markets analyst

‘’In terms of taking advantage of the DIY boom during the pandemic, B&Q owner Kingfisher has nailed it.  As people rolled up their sleeves and got stuck into home improvements during lockdowns, sales and profits surged with a 7.1% rise in like for like sales. With the working from home revolution unlikely to fully unravel and demand for home office space set to continue, it should keep sales brisk for DIY projects. We should also find out in this trading update if a surge in garden makeovers, ready for post lockdown outdoor social lives, has helped revenue streams. As more people leave furlough schemes and return to full time working once more, the DIY craze is likely to wane a little, although a buoyant housing market is likely to keep our passion for decoration relatively high. The forecast of a brighter economic outlook with growth prospects higher also bodes well for the company, given that people may have more money in the spending pot to splash on building projects.’’

Royal Mail [LON:RMG], Full Year Results, 20 May

Susannah Streeter, senior investment and markets analyst

“Royal Mail is expected to deliver some bumper results as it continues to capitalise on the e-commerce boom. Momentum has snowballed as the group increased its capacity for parcel deliveries after a huge upswing in demand left the domestic mail system creaking in December. A renaissance in letter writing was an added bonus after declines last year giving the humble post box a new lease of life. But after years of under-investment the group’s UK business is still not home and dry and we should find out just how much more capital expenditure will be needed to keep up with demand. Agreements with its unions have helped soothe long running industrial tensions but it’s the expansion of the company’s international business which is set to be the shining light. Royal Mail is targeting 12% annual revenue growth over the next five years for GLS with only modest capital expenditure, a blueprint its domestic business can as yet only dream of emulating.’’

Close Brothers [LON:CBG], Third Quarter Trading Statement, Friday 21 May

Steve Clayton, HL Select Fund Manager

“Close Brothers reports a Q3 trading update on 21 May. Bad debts have stayed under control so far and Close have reported some encouraging lending data up to now. The market will be hoping to see lending accelerating with muted levels of competition at this stage of the cycle. The future path of bad debts will be important, especially with furlough schemes heading toward an end.”


FTSE 350 & other companies reporting next week

17-May
Diploma Half Year Results
Petropavlosk Full Year Results
Ryanair* Full Year Results
Vistry* Trading Statement
18-May
Assura Full Year Results
Britvic Half Year Results
Cranswick Full Year Results
DCC Full Year Results
Imperial Brands* Half Year Results
Land Securities Full Year Results
TBC Bank Group First Quarter Results
UDG Healthcare Half Year Results
Vodafone* Full Year Results
19-May
BAE Systems* First Quarter Trading Statement
Coats Group First Quarter Trading Statement
Experian* Full Year Results
Future* Half Year Results
Great Portland Estates Full Year Results
Ninety One Full Year Results
Premier Foods Full Year Results
Redde Northgate Pre-Close Trading Statemnt
Severn Trent* Full Year Results
20-May
easyJet* Half Year Results
Euromoney Institutional Investor Half Year Results
Kingfisher First Quarter Trading Statement
National Grid* Full Year Results
Royal Mail* Full Year Results
Watches of Switzerland Fourth Quarter Trading Statement
Youngs Full Year Results
21-May
Investec Full Year Results
Close Brothers Third Quarter Trading Statement

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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