Rolls and WPP expected to look beyond virus hit
After a strong first-half, there will be “little to surprise” in Bunzl’s interim results, says UBS’s Rory McKenzie. The specialist delivery and distribution group has reported “resilient” trading, with high demand for groceries, and the margin-friendly safety, cleaning, hygiene and healthcare sectors.
Its management will likely now guide for a “tougher” second half to the year, said Mr McKenzie, with the stockpiling no longer able to counterbalance a decline in food service and non-food retail.
Interim results: Bunzl
Apax Global Alpha’s portfolio, dominated by investments made during 2015 and 2016, is finally coming of age, says Jefferies’ Matthew Hose.
The “maturing” private equity investment-focused fund “has already begun to bear fruit”, he adds, with the successful recent float of insurance software provider Duck Creek Technologies enough to offset the negative impact of recent US dollar weakness. Mr Hose raised Apax’s rating to “buy”, saying its shares look good value.
Interim results: Apax Global Alpha, Fisher (James) & Sons
Economics: CBI distributive trades survey (UK); Q2 GDP final reading, IFO business climate (Germany); consumer confidence (US)
Signs of improving collection rates will be a key point in Provident Financial’s first-half results.
When the doorstep lender last offered a trading update, in late May, it said home collections were being carried out remotely and “tracking at over 80pc of pre-Covid expectations”.
That was now “some time ago”, says Goodbody’s John Cronin, who says it would be a surprise if Wednesday’s interims don’t “point to materially improved collections levels”. Interim results: Provident Financial, Polymetal International Economics: BoE chief economist Andy Haldane webinar (UK); consumer confidence (France); durable goods orders (US)
For many companies, advertising budgets were the first thing on the chopping block after the pandemic hit. That was bad news for WPP, which implemented pay cuts and suspended its dividend. The ad giant is likely to unveil some painful numbers – but some peers have beaten expectations, and investors may be more inclined to focus on bosses’ thoughts on the future.
After a trading update in July, Thursday’s Rolls-Royce interims are “largely immaterial”, says Citi’s Charles Armitage. Instead, investors will be eyeing the extent to which reality is matching up with the aerospace engineer’s expectations: with revenue passenger kilometres, a key metric of aviation demand, still far worse than the group’s target.
Interim results: Anglo Pacific,
Hunting, OneSavings Bank, Rolls-Royce, WPP
Full-year: Hays, TheWorks
Trading statement: Diploma Economics: Industrial profits (China); money supply (eurozone); virtual Jackson Hole Economic Policy Symposium begins, Q2 GDP second estimate, jobless claims (US)
Interim results: Amigo, Essentra Economics: Andrew Bailey speaks at Jackson Hole (UK/US); business confidence (eurozone); Q2 GDP final reading (France); goods trade balance, personal spending and income (US)
Aerospace expectations: Rolls-Royce’s Trent Engine displayed at the Singapore Airshow in February this year. The company has been badly affected by the slump in flights