Attention turns to the pub as leisure sector steps out
This week will give us a glimpse of how consumers are spending their time, with Whitbread, Punch Taverns and PartyGaming all reporting.
But it will be opinion-polling firm YouGov that gets a reaction from investors today, as it reports its full-year results. The company said in July that it was beginning to see the benefits of cost-cutting in areas that were not delivering revenue growth, and that trading was in line with expectations.
Leisure group Whitbread will give its half-year update tomorrow for the 26 weeks to 27 August. Panmure Gordon forecasts a revenue increase of 2.4 per cent to £698.6m, but a 6.3 per cent pre-tax profit decline. But the broker expects the group to maintain the dividend at 9.65p.
Whitbread’s Costa Coffee operation is expected to be the highlight of the report, with like-for-like sales having risen by 2.7 per cent in the 24 weeks to 14 August.
Deutsche Bank remains upbeat on the shares, with a “buy” recommendation, saying that the shares still look cheap, despite a strong rebound over the past quarter.
Also tomorrow, fashion retailer Burberry Group will give its second-quarter update. Nomura is forecasting second quarter sales of £320m.
Housebuilder Bellway produces its year-end results tomorrow, most of which was covered in its 6 August trading update. Numis expects the company to confirm robust net asset values and that it is now in a net cash position following the £44.8m fundraising.
“We believe that the results will be well received and they should provide some support to the shares which have fallen around 15 per cent since mid September,” it said.
Mining giant Rio Tinto will deliver its third-quarter production update on Wednesday and UBS said that the market will be looking for an indication of Chinese demand.
This is particularly relevant after relations between Rio Tinto and China were strained earlier in the year. Wednesday will also bring a trading statement from silver miner Fresnillo.
On the same day, debt-laden Punch Taverns will post its full-year results, and is expected to post a profit of around £162m, versus a loss last year.
PartyGaming follows with its third-quarter numbers, and investors will looking for a signal as to how momentum is building for the crucial fourth quarter.
Also on Thursday, WH Smith gives its full-year figures.