Ladbrokes Coral in the spotlight after investors bet on takeover

Today

Distribution company Bunzl kicks off this week’s light corporate calendar. The outsourcer’s recent spending spree will be the focus for investors looking to see whether its acquisitions continue to bump up revenue growth.

The company, which supplies a range of products spanning from supermarket packaging to cleaning utensils, last month brought its haul in 2017 to 10 acquisitions at a total cost of around £530m with the purchase of UK firm Pixel Inspiration and three French companies.

Bunzl said in its latest trading update in June that its performance was in line with expectations. It estimated revenue growth for the first half of the year to have increased by 7pc at constant exchange rates, with “improved underlying growth of between 3pc and 4pc and a similar impact from acquisitions”.

Tomorrow

The Gym Group will be under the spotlight tomorrow with investors keen to see if the no-frills chain can continue to snap up market share from its mid-priced competitors.

The gym operator is aiming to have opened 15 to 20 new sites this financial year and promises a solid pipeline for 2018 as well.

Although its membership base has touched over 500,000 this year and a total of 95 sites are now included in its fast-growing portfolio, the Gym Group’s share price has remained stubbornly stable since it listed in late 2015.

The pipeline will help the company at least double its profits over the next three years, according to Douglas Jack, a Peel Hunt analyst. He added that strong interims were expected again from the company, which posted its first full-year profit in March.

Thursday

While Ladbrokes Coral will be looking to score big points over rivals in its latest interim results on Thursday, analysts believe that earnings have become just a sideshow for the big gambling names of late.

Investors cheered its first-half trading update last month, its shares popping 6.5pc as digital growth offset its high street decline, and synergy saving estimates from the merger between Ladbrokes and Gala Coral rose.

The Government’s triennial review of the gambling industry looms large, however, and Ladbrokes’ future earnings hang on how severe the new regulatory environment will be, with the bookie considered one of the most exposed to any changes.

Last week the company was subject to renewed takeover talk with shares briefly spiking on Tuesday after reports surfaced that rival GVC had launched another bid for the company. Shares quickly receded as it became apparent that the two rivals had differing valuations for Ladbrokes. The bookie’s price tag will seemingly be determined by the outcome of the crucial review.

Frankie & Benny’s owner the Restaurant Group reports on Thursday but has already written off 2017 as a “transitional year” with the focus for the FTSE 250 company’s first-half results on whether the green shoots of a recovery can be spotted.

The company appointed Kirk Davis from Greene King as chief financial officer earlier this month to help steady the ship, with his predecessor lasting just 10 months in the role.

Thursday’s results will be an indication of how big a task he has in front of him. Mark Irvine-fortescue, a Panmure Gordon analyst, forecasts that first-half like-for-like sales will be down around 2.5pc but that trading momentum will pick up in the fourth quarter.

Friday

No companies reporting.