Pri­mark to prove there is life for re­tail­ers off­line

Bakka­vor and Mor­risons among those join­ing the fash­ion chain’s owner in of­fer­ing fi­nan­cial up­dates

The Daily Telegraph - Business - - Business - LOUIS ASH­WORTH THE WEEK AHEAD


To­day’s trad­ing state­ment is likely to con­firm that shop­pers have “en­thu­si­as­ti­cally re­con­nected” with Pri­mark, the jewel in As­so­ci­ated Bri­tish Foods’ crown, writes Jef­feries.

An­a­lyst James Grzinic said en­cour­ag­ing trad­ing trends were likely to have con­tin­ued through re­cent months, set­ting the scene nicely for its full-year re­sults. “There is life off­line af­ter Covid-19,” he wrote – adding that ri­vals’ woes should fur­ther ce­ment the dis­count fash­ion group’s mar­ket po­si­tion. Fur­ther­more, a “weak­en­ing con­sumer out­look” is likely to help Pri­mark – with fi­nan­cially pres­sured shop­pers more likely to seek out dis­count op­tions.


Dechra Phar­ma­ceu­ti­cals Trad­ing state­ment As­so­ci­ated Bri­tish Foods


Hal­i­fax house price in­dex (UK); La­bor Day hol­i­day (US); trade bal­ance (China)


Spe­cial­ist food maker Bakka­vor’s in­terim re­sults are likely to be “muted” due to the ef­fects of Covid-19, warns Good­body’s Ja­son Molins. But in­vestors shouldn’t be “overly pessimisti­c” on the group’s prospects, he says: most bad news is al­ready baked into its price, the fall in which “looks over­done”. Keep an eye out for in­creased costs and pres­sure from re­tail­ers to re­duce prices.

Also set to re­port to­mor­row is builders’ mer­chant Travis Perkins. Al­though the group’s short-term trad­ing is likely to be boosted by a post-lock­down ac­tiv­ity re­bound and strong DIY de­mand, a “weak macro and em­ploy­ment pic­ture into 2021” is a cause for con­cern, says Royal Bank of Canada’s An­drew Brooke.

De­spite those wor­ries, Travis Perkins looks “well placed”, with the dig­i­tal ad­van­tages sub­sidiaries Wickes and Tool­sta­tion have over com­peti­tors likely to al­low for fur­ther mar­ket share gains.

In­terim re­sults

Ashtead, Bakka­vor, Cairn En­ergy, Fev­ertree Drinks, JD Sports Fash­ion, Meg­gitt, Sig­na­ture Avi­a­tion, Travis Perkins, Vistry

Full-year DWF, McBride

Trad­ing state­ment

DS Smith, Hal­fords


BRC re­tail sales mon­i­tor (UK); Q2 GDP fi­nal read­ing (Ja­pan, eu­ro­zone); small busi­ness op­ti­mism (US)


IT spe­cial­ist Com­puta­cen­ter al­ready heav­ily teed up Wed­nes­day’s first-half re­sults, say­ing in a trad­ing state­ment last week that it had seen strong trad­ing mo­men­tum con­tinue through July and Au­gust – adding that its

full-year per­for­mance would likely be “ma­te­ri­ally above” pre­vi­ous ex­pec­ta­tions.

Nat­u­rally, risks re­main, and the FTSE 250 com­pany’s vic­tory lap might yet be over­shad­owed by in­vestors keep­ing a close eye on its pipe­line of up­com­ing work.

In­terim re­sults Com­puta­cen­ter, S4 Cap­i­tal, Sanne Group, Tul­low Oil

Trad­ing state­ment


Eco­nom­ics In­fla­tion (China)


“Judged with­out con­text”, some parts of Mor­risons’ first-half re­sults on Thurs­day may ap­pear “rather weak”, says Bar­clays’ James An­stead.

The group is likely to have “some­thing of a hill to climb” to reach full-year profit ex­pec­ta­tions, but it is clear the su­per­mar­ket’s fi­nan­cials will look “much bet­ter” in the sec­ond half of the year.

One big ques­tion is over the group’s spe­cial div­i­dend, he added: a pause now might set the FTSE 100 com­pany up for a “size­able” pay­out in the sec­ond half.

En­ergean, Forterra, Mor­risons, Saga Full-year

Dunelm, Rank



Royal In­sti­tu­tion of Char­tered Sur­vey­ors hous­ing survey (UK); Euro­pean Cen­tral Bank mon­e­tary pol­icy de­ci­sion (eu­ro­zone); in­dus­trial pro­duc­tion (France, Italy); job­less claims (US)





July GDP, trade bal­ance (UK); in­fla­tion (Ger­many, Spain, US)

As­so­ci­ated Bri­tish Foods, the owner of re­tailer Pri­mark, will up­date the mar­ket to­day In­terim re­sults Trad­ing state­ment

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