In January the company cut its guidance for full year pre-tax profit to £792mln, down from the £805mln indicated previously, as it reported drop in sales over the key Christmas period.
The firm also forecast pre-tax profit in the range of £680mln-£780mln for full-year 2017-18, below analysts' current average forecast of £784mln.
Next’s disappointing trading update came as UK clothing retailers face the hurdle of rising inflation due to a weaker pound following last June’s Brexit vote.
Data from the BRC-KPMG Retail Sales Monitor showed non-food sales in the UK fell 0.4% on a like-for-like basis and 0.2% on a total basis during the three months ending February 25.
Graham Spooner, investment research analyst at The Share Centre, said the market will be hoping for better news from the clothing retailer, which last month announced former Bunzl boss Michael Roney as its new chairman to take over from John Barton.
“A major issue for the group is the increase in import costs due to the weak pound and investors are keen to see if that is going to be passed on to customers or absorbed by the company.”
In its last trading update in November, the DIY company reported a slowdown in third quarter sales, blaming softer sales in France.
However it said it expects to see a change of pace in 2017 on the back of its ONE Kingfisher overhaul programme.
Broker Jefferies believes its recent underperformance is not over yet as the housing market looks set to soften in the UK, where the company trades under the B&Q and Screwfix brands.
“The [French] business continues to protect profits by de-emphasising promos (we assume +10bps FY 16/17 EBIT margin); however, a more front-foot approach is likely needed from here,” Jefferies said.
Numis expects an 11% increase in full year pre-tax profits of £700mln, before restructuring costs of £775mln.
Satellite Solutions Worldwide Group PLC (LON:SAT) is positioning itself to solve the problem of how to get a decent broadband/mobile connection in remote parts of the world.
The company is on an acquisition spree as it builds on its core UK base. The model is similar to here, set up a hub operation and then buy up rivals to build scale.
Deals earlier this month in Australia and Norway were typical. SSW bought satellite broadband provider BorderNET and Norwegian broadband solutions providers NextNet and AS Distriktsnett.
“Having established strong hubs in Norway and Australia last year, we can now readily acquire sub-scale, local businesses and rapidly turn them into profitable assets by integrating them onto our global platform,” said chief executive Andrew Walwyn.
Finals are on Monday and the key figure to look for is the number of customers. Satellite has long talked about hitting the 100,000 milestone by the end of its next financial year, although it now expects this to happen a little faster than even it had first hoped.
Results are normally predictable, with the ups and division of its four key divisions seemingly always managing to even themselves out.
Morgan Stanley forecasts first half sales of £1.528bn, operating profit of £235.2mln, and EPS 38.1p.
Oil seals group John Crane will be the worst performer and medical the best. News of a structural shake-up might spark the shares into life, but is unlikely.
Week ahead 20-24 March 2017
Monday 20 March
Finsbury Food Group PLC (LON:FIF), Volution Group Plc (LON:FAN),
MD Medical Group Investments Plc (LON:14NY), John Laing Infrastructure Fund Ltd (LON:JLIF); MaxCyte Inc (LON:MXCT); Taptica International Ltd (LON:TAP)
Satellite Solutions Worldwide Group (LON:SAT); One Media IP Group PLC (LON:OMIP)
Tuesday 21 March
Interims: Bellway PLC (LON:BWY), Earthport plc (LON:EPO). Finals: Judges Scientific PLC (LON:JDG), Nahl Group (LON:NAH, Smart Metering Systems (LON:SMS, IQE plc (LON:IQE),Hansteen Holdings plc (LON:HSTN, Augean PLC (LON:AUG), Amec Foster Wheeler PLC (LON:AMFW),888 Holdings PLC (LON:888),EKF Diagnostics Holdings PLC (LON:EKF),EnQuest Plc (LON:ENQ), Ubisense Group PLC (LON:UBI), Vectura Group PLC (LON:VEC), Fevertree Drinks Plc (LON:FEVR),Safecharge International Group (LON:SCH)
Wednesday 22 March
Thursday 23 March
AGM / EGM: Conygar Investment Company (The) PLC (LON:CIC)
Ex-Dividend: Private & Commercial Finance Group plc (LON:PCF, Octopus Second Aim Vct Plc (LON:OSEC), Redrow plc (LON:RDW), Segro (LON:SGRO), Tristel Plc (LON:TSTL) NWF Group plc (LON:NWF), Meggitt plc (LON:MGGT), Bovis Homes Group PLC (LON:BVS), Dunelm Group PLC (LON:DNLM), Galliford Try plc (LON:GFRD), Heavitree Brewery PLC (LON:HVT), BlackRock Latin Am (BRLA)
Friday 24 March