FTSE 350 Look Ahead: Kingfisher, Saga, Compass And More

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Look ahead to FTSE 350 & other companies reporting from 21 to 24 September  

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Q2 2021 hedge fund letters, conferences and more

  • B&Q and Screwfix owner Kingfisher plc (LON:KGF) nailed demand for DIY during lockdowns
  • We’ll get an idea of whether Saga PLC (LON:SAGA)’s travel business has restarted as planned
  • We’ll see if Compass Group plc (LON:CPG)’s leaner structure can deliver on margin targets
  • CVS Group Plc (LON:CVSG) will let us know if the UK’s pet boom is still kicking, and what it means for investors

Kingfisher, Half Year Results, Monday 21 September

Susannah Streeter, Senior Investment and Markets Analyst

"B&Q and Screwfix owner Kingfisher nailed demand for DIY during lockdowns and although there was some expectation that the craze may have waned as restrictions eased, it appears the race for more space in our homes has been keeping demand for building and decorating materials brisk The working from home revolution. Doing up outdoor areas to entertain friends and family also became a new hobby during the early summer and we should find out of these trends are continuing. But the supply chain issues are likely to be the cracks which will be hard to fill in, with gaps on shelves already appearing earlier in the year. Higher shipping costs and bottle necks at major ports don’t look like they are going to ease any time soon and although the Christmas trading period isn’t the most crucial one for Kingfisher, compared to other retailers it’s still likely to be eyeing the next year’s supplies with some concern."

Compass, Pre-Close Trading Update, Monday 21 September 2021

Laura Hoy, Equity Analyst

“As a contract caterer, sales collapsed for Compass over the course of the pandemic, but spending cuts helped keep the group from amassing piles of debt. While social restrictions are loosening, which is adding to demand, the recovery may be patchy with the delta variant still looming. That means it might have been more difficult for the group to reach its targets.

The group expected to operate at 80-85% of 2019 levels over the past quarter, which should translate into operating margins between 5.5% and 6%. This will be an important barometer of how much further Compass has to before reaching its margin goal of 7%. The cuts Compass made over the past year have created a leaner, more efficient organisation, so we’re optimistic that the group can deliver on its margin objectives even if demand isn’t quite as rosy as expected. Remember, nothing’s guaranteed though.”

Saga, Half Year Results, Wednesday 22 September

Laura Hoy, Equity Analyst

“Saga’s unique business, made up of both a travel business and personal insurance offerings, has struggled under the weight of the pandemic. While insurance has done relatively well, all eyes will be on the travel side of the equation, which restarted cruising on 27 June. Management was optimistic about demand, with 73% of cancelled bookings retained. However, there’s a chance that delta variant concerns caused some to change their plans. The balance sheet has been the other major point of interest in recent times. The significant debt associated with inactive cruise liners has been a burden and saw the group subject to some punishing restrictions by its lenders. Since then the group’s raised new money by selling shares and issued £250m of new bonds. That should mean we see much healthier numbers next week.”

CVS, Trading Update, Thursday 23 September

Sophie Lund-Yates, Equity Analyst

“A trading statement in July told us a lot of what to expect in next week’s full year results. Like-for-like sales rose 17.4%, and underlying cash profits will come in ahead of upgraded targets. That’s all great news, but what’s important is the outlook statement.

There are a lot of things going in the group’s favour, like the UK’s pet-ownership boom. But we wonder if there’s any sign of that slowing down yet. The other important update will be acquisitions. The group often adds to its family of vet clinics through buying up existing practices, rather than setting up its own. In July the group said it’s “well placed to pursue further targeted acquisitions”. Finally, we’d like a more specific update on net debt. This is expected to be well under the level of cash profits. Balance sheet flexibility is an important tool for CVS, because it gives it the firepower to fund those acquisitions.”

FTSE 100, FTSE 250 and selected other companies scheduled to report next week


Compass Group* Pre-Close Trading Update
Jtc Half Year Results
Kingfisher Half Year Results


Oxford BioMedica Half Year Results
PZ Cussons Full Year Results
Saga* Half Year Results


CVS Group* Trading Update
Investec Pre-Close Trading Update
Playtech Half Year Results


No FTSE 350 Reporters

*Events on which we will be writing research

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