Look ahead to FTSE 350 & other companies reporting from 24 to 28 May
Q1 2021 hedge fund letters, conferences and more
- Covent Garden and Soho landlord Shaftesbury plc (LON:SHB) adjusts to the new normal
- British Land Company PLC (LON:BLND) is working to get its house in order
- All eyes will be on post pandemic market demand atIntertek Group plc (LON:ITRK)
- NVIDIA Corporation (NASDAQ:NVDA) looks to benefit from the ongoing surge in demand for computer chips
- Pets at Home Group PLC (LON:PETS) set for bumper profits due to demand for furry friends
- A recovery in the auto market is necessary for Johnson Matthey PLC (LON:JMAT) to execute its strategy shift
- Ted Baker plc (LON:TED) will show the full effect the pandemic had on full year numbers
Shaftesbury, Half Year Results, Tuesday 25 May
Susannah Streeter, senior investment and markets analyst
“With the complete closure of theatre land, the pandemic was particularly brutal for Covent Garden and Soho landlord Shaftesbury. Once bustling streets have been deserted, with only limited respite as lockdowns eased given the absence of tourists, office workers and theatre goers from central London. As venues went out of business, and empty space in the West End increased, the company was forced to write down the value of its portfolio by just over 18% to £3.1 billion. Vaccine breakthroughs and rapid roll outs brought hope that there was light at the end of the tunnel but it’s been a hugely difficult journey, reflected in its annual loss of £699.5m after tax, compared with a profit of £26m the previous year. Now the company is adjusting to the new normal, trying to offer tenants more flexibility, shorter leases and the chance of sharing the risk via turnover rents. This adaptability and nimble attitude to meet changing business needs should stand Shaftesbury in good stead as the economy recovers. Shaftesbury has also worked with councils to encourage the al fresco dining revolution, which is rippling through the city, which could prove a positive long-term benefit if given the right support. Already it seems central London is becoming more appealing with a sharp rise in footfall last week and with restrictions on dining in now lifted, prospects for Shaftesbury look brighter, but it is likely to take a long time before the pandemic scars heal.”
British Land, Full Year Results, Wednesday 26 May
Susannah Streeter, senior investment and markets analyst
“British Land is trying to get its house in order, to prepare for potentially long-term changes to the way we use office and retail space. Although the company had already been grappling with effect the rise of e-commerce will have on its retail portfolio, the pandemic accelerated the trend. But now the company is also recognising that the working from home revolution brought about by Covid, isn’t likely to be reversed any time soon. Even when the pandemic subsides, many companies are still likely to allow staff to work remotely, for some of the week at least, which will inspire a reappraisal of their estates. This is why British Land is refocusing its efforts into providing top notch campus style spaces to give firms the flexibility they need. Defensive tactics at British Land have strengthened its ability to deal with the headwinds and bolstered its balance sheet. It also has access to significant borrowing facilities from banks should it need them. So far resilience is the name of the game, and office rent collections have been strong, with 82% of 2021 payments coming through, representing 99% of office rents and 70% of retail. The quality of its portfolio probably means it's one of the better placed property companies in the UK, but the disruption ripping through the industry will not leave it unscarred.”
Intertek, Trading Statement, Wednesday 26 May
Steve Clayton, HL Select Fund Manager
“Intertek will release its AGM trading statement on Wed 26th May, hot on the heels of their recent announcement of the £855m acquisition of Australian Assurance specialist, SAI Global. Investors will be hoping the company can show evidence that CEO André Lacroix’ confidence that market demand will grow faster post-pandemic than it did before is coming to fruition.”
NVIDIA, Q1 Results, Wednesday 26 May
Nicholas Hyett, Equity Analyst
“NVIDIA’s first quarter results should continue the very strong revenue growth reported last year. The company’s key end markets – data centres used in cloud computing and gaming computers and consoles – have likely enjoyed another strong quarter as lockdowns continue in many markets and the digital revolution gathers pace. The group should also benefit from the pricing tailwind that’s blowing through the wider chip market. Strong demand from retail and commercial customers, together with some pandemic related supply disruption, has resulted in a global shortage of crucial computer chips. That’s fed through to higher prices – boosting margins for chip companies that can’t make additional stock fast enough. That tailwind will eventually subside as new capacity comes online. However, with the range of businesses and industries relying on new digital technologies ever growing, we suspect NVIDIA will have some reasonably upbeat guidance for the longer term.”
Pets At Home, Full Year Results, Thursday 27 May
Susannah Streeter, senior investment and markets analyst
“Pet ownership has skyrocketed during the pandemic with lockdowns proving an ideal opportunity for people to settle in a new member of the household. The phenomenon hasn’t just been witnessed in the nation’s parks where owners have been out parading with their new pooches, but in the profits being racked up by Pets At Home. Like for like sales grew 17.6% in the third quarter, reflecting retail growth both in store and online as customer splashed out on their new furry friends. The company now expects full year profits to hit £85m, 10% up on previous guidance. Pets is in the jaws of a boom right now, and although there is a risk new ownership levels will drop off, it’s offering services providing longer term benefits. There has been a continued rise in the group’s VIP and Puppy and Kitten Club memberships, and vet clinics and grooming rooms provide extra revenue streams. But crucially they also encourage cross-selling in the core retail business and that might help the group shift more higher margin products like supplements rather than relying on shifting an awful lot of cat litter.”
Johnson Matthey, Full Year Results, 27 May
William Ryder, Equity Analyst
“Johnson Matthey was caught in a perfect storm last year as the transition toward electric vehicles (EVs) was compounded by a sudden drop in the auto market due to the pandemic. Now we’ll see whether the group was able to stage a comeback. Management is expecting profits to come in at the top-end of expectations – around £502m – as a result of cost saving and a recovery in auto activity. If the group does manage to deliver, we’re hoping the latter is responsible for the bulk of the growth. JMAT needs to eek every last pound out of its catalytic converter business in order to support its strategy shift into battery components. A resilient auto market is crucial. Speaking of squeezing cash out of the business, the group’s strategic review of the Health division will also be in focus, with the most likely outcome a sale. That brings us to the performance of New Markets. JMAT’s building a battery and fuel cell supply business that will eventually take over as the growth engine once catalytic converters go the way of the dodo. It’ll be an expensive endeavour, and for now New Markets makes up a tiny fraction of overall revenue, but it’s essential to Johnson Matthey’s long-term survival. Fuel Cell sales are expected to rise over 20% as capacity expands. We’ll be looking for updates on its two eLNO plants, and whether they’ll be up and running by 2024.”
Ted Baker, Full Year Results, 27 May
Sophie Lund-Yates, Equity Analyst
“The pandemic was not kind to Ted Baker. Lockdowns meant all its UK shops and many international sites were closed for swathes of the year. And it has little presence in out-of-town retail parks, which have fared better during the crisis. We know the full year numbers aren’t going to be pretty: revenue fell 47% in the final quarter. But because the retailer has high fixed costs – store leases must be paid whether they’re open or not – operating profits are expected to fare even worse. Analysts expect this to swing from an £18m profit last year to around a £70m loss. The market is likely to react badly if the group does worse than expected. The outlook statement will be important. Ted was struggling before the pandemic, so we’d like some tangible proof its strategic turnaround efforts are bearing fruit. At the moment, the group has many of the right ideas, including trying to refresh its brand and become less reliant on occasion wear. We’re yet to see if this idea is becoming a reality.”
FTSE 100, FTSE 250 and selected other companies scheduled to report next week
| 24-May | |
| Hilton Food Group | Trading Update |
| Kainos Group | Full Year Results |
| 25-May | |
| AVEVA | Full Year Results |
| Avon Rubber | Half Year Results |
| Big Yellow Group | Full Year Results |
| Electrocomponents | Full Year Results |
| Greencore | Half Year Results |
| Pershing Square Holdings | Q1 Results |
| Shaftesbury | Half Year Results |
| 26-May | |
| SSE* | Full Year Results |
| Biffa | Full Year Results |
| British Land* | Full Year Results |
| Intertek* | Trading Statement |
| Marks & Spencer* | Full Year Results |
| Mediclinic | Full Year Results |
| NVIDIA* | Q1 Results |
| 27-May | |
| AJ Bell | Half Year Results |
| Aviva* | Q1 Operating Update |
| Calendonia Investments | Full Year Results |
| Johnson Matthey* | Full Year Results |
| LondonMetric | Full Year Results |
| Pets at Home* | Full Year Results |
| Tate & Lyle | Full Year Results |
| Ted Baker* | Full Year Results |
| United Utilities* | Full Year Results |
| 28-May | |
| TR Property Investment Trust | Full Year Results |
*Events on which we will be writing research
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