Su­perdry in­vestors braced for slump in pan­demic sales

Events com­pany In­forma, B&Q owner King­fisher and engi­neer­ing firm Smiths will also de­liver up­dates

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


The out­look re­mains grim for the global events sec­tor, with a re­cov­ery in China not enough to off­set con­tin­ued shut­downs in the US and UK. That is bad news for In­forma, which is set to down­grade its es­ti­mates, ac­cord­ing to bro­ker Peel Hunt – with all its even­tled di­vi­sions likely to post losses.

An­a­lysts at UBS con­cur that the FTSE 250 group is likely to pro­duce “weak” earn­ings, but say it should mount a strong re­cov­ery next year if a vac­cine is forth­com­ing.

The dra­matic re­turn of founder Ju­lian Dunker­ton to the board of Su­perdry was set to be an in­flec­tion point for the ail­ing re­tailer. The pan­demic has mud­died the waters sub­stan­tially since then, with sales likely to have fallen al­most a quar­ter com­pared to 2019.

Su­perdry re­cently se­cured an ex­ten­sion to its £70m debt fa­cil­ity, so pos­sesses a strong cash buf­fer, but in­vestors will be keen to hear its out­look for the pe­riod ahead. In­terim re­sults




Trad­ing state­ment

Avon Rub­ber


Mar­kets hol­i­day (Ja­pan)


“The trend has been the friend” for B&Q owner King­fisher this year, as lock­down drove a DIY boom, say an­a­lysts at Citi. The com­pany is ex­pected to re­port a solid first-half per­for­mance to­mor­row, but in­vestors will be watch­ing closely for any sig­nals on how de­mand is likely to shift in the com­ing months.

Over­all, the group – which dropped out of the FTSE 100 in March be­fore grab­bing its spot back in June – has had a good pan­demic, with strong on­line de­mand putting the wind in new boss Thierry Garnier’s sails as it em­barks on a five-year turn­around plan. Keep an eye out for any word on its div­i­dend, which was can­celled as the virus first ar­rived.

In­terim re­sults

AG Barr, King­fisher


CBI in­dus­trial trends sur­vey (UK); con­sumer con­fi­dence (eu­ro­zone); ex­ist­ing home sales (US)


In­terim re­sults

Staffline, Ten En­ter­tain­ment Full-year

PZ Cus­sons

Trad­ing state­ment

Halma, SSP


Flash PMIs (UK, Ja­pan, eu­ro­zone, US); sec­ond-quar­ter GDP fi­nal read­ing (Spain)


Di­ver­si­fied engi­neer­ing group Smiths is likely to have felt a mixed im­pact from the pan­demic: while de­mand for its ven­ti­la­tors has been high, other parts of its op­er­a­tions – such as its oil ser­vices di­vi­sion – will have taken more of a hit. In the­ory, it is sup­posed to be look­ing to di­vest its med­i­cal de­vices di­vi­sion, but with the sale put on hold un­til the pan­demic is over, it is hard to see any loom­ing move­ment on that front. With re­gards to the full-year num­bers them­selves, its rev­enues are ex­pected to have climbed – but cost pres­sures are likely to have weighed on Smiths’ bot­tom line.

In­terim re­sults

Cineworld, Fund­ing Cir­cle, Pen­dragon, SIG


DFS Fur­ni­ture, Go-Ahead, Smiths Economics

CBI dis­tribu­tive trades sur­vey (UK); Ifo busi­ness climate in­dex (Ger­many); job­less claims (US)


Wa­ter com­pany Pen­non is cur­rently “trad­ing be­low its fun­da­men­tal val­u­a­tion”, and op­por­tu­ni­ties for M&A abound as mar­kets wait to see how the FTSE 100 group spends its left­over change from the Viri­dor sale, says Royal Bank of Canada’s Alexan­der Wheeler. Pen­non may set its sights towards com­pa­nies based in the South, he said, adding “we would ex­pect that man­age­ment is con­fi­dent on be­ing able to pro­vide fur­ther value cre­ation” for share­hold­ers. As for any up­date on trad­ing fig­ures, ex­pect the typ­i­cal steady, dull util­i­ties per­for­mance. Trad­ing state­ment



GfK con­sumer con­fi­dence, pub­lic sec­tor net bor­row­ing (UK); M3 money sup­ply (eu­ro­zone); durable goods or­ders (US)

Su­perdry, which up­dates in­vestors to­day, is likely to have en­dured a sub­stan­tial sales hit

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