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Focus on tour operators TUI and Thomas Cook and utilities in week ahead

Last updated: 06:00 25 Sep 2017 BST, First published: 12:00 22 Sep 2017 BST

Beach bums

It looks to be fairly quiet on the corporate front in the final week of September, although two travel firms and two utility companies will provide updates for the market

Package tour operators Thomas Cook Group PLC (LON:TCG) and TUI AG (LON:TUI) go head-to-head with trading statements on Tuesday and Thursday respectively.

Both stocks have done well in the second half of the year, with both boasting of a strong performance in the second quarter of the calendar year.

TUI posted 19% growth in like-for-like underlying earnings (EBITDA) and raised its full year expectations for turnover on the back of strong demand for its hotels, cruises and holidays.

The company said it sees turnover for the year rising more than the 3% previously guided after delivering a 16.4% increase in the third quarter to €4.7bn from €4.2bn the same period a year ago.

The UK division has finally rebranded as TUI, dropping the Thomson name.

Sterling has been on a bit of a tear of late, and this may warrant a mention from either TUI or Thomas Cook, or both. Management may also give details on how badly trading has been affected by the recent hurricanes in the Caribbean area.

For its part, the first part of summer was also good for Thomas Cook but the skies have been clouded a bit of late by strike action by pilots seeking a pay rise “substantially” in excess of the retail price index inflation rate, which came in at 3.6%.

Recently the company has entered into a strategic alliance with Expedia, with Expedia becoming the preferred supplier of hotels for Thomas Cook’s city break and domestic holiday business.

Usual updates from utilities

The utilities sector has been growing a little jittery ahead of the first draft outline for the next regulatory period from 2020 to 2025, which is due in December, though trading updates from blue chips United Utilities PLC (LON:UU.) on Tuesday and mid cap Pennon Group plc (LON:PNN) on Monday are unlikely to provide much drama. .

Investors always expect little in the way of excitement from utility companies when it comes to results, so the interest will focus on performance targets and any comments regarding the outlook for the sector.

Having hit an all-time high in May, United Utilities has seen its share price drift back over the summer months, possibly factoring in the review outcome along with a fading of previous of bid speculation.

Hotel Chocolat feeling the heat

Shares in chocolatier Hotel Chocolat Group PLC (LON:HOTC) have melted in the second half of the year, despite revealing in July ahead of this Wednesday’s prelims that revenue in the 53 weeks to 2 July was slightly ahead of expectations.

The top line was 12% higher than a year earlier, albeit with the benefit of an extra week, which implied a number £2mln higher than Liberum Capital Markets had forecast.

Having already announced revenue numbers, focus on Wednesday is likely to be on current trading, particularly in the new shop+café format, and the reception given to new products such as the hot chocolate and the cocoa-infused ice cream offering.

US progress eyed at Purplebricks

Although it will be only a fortnight after it launched its business in the US later, a trading update from  the hybrid estate agent on Friday will be eyed for any comment on early progress across the Atlantic.

Kicking off in Los Angeles the group plans to then extend across the state of California and other targeted key states thereafter in line with the region by region rollout successfully adopted for entry in the UK and Australian markets.

At the end of June, Purplebricks reported a halving in annual losses in its first full year of operation since listing on AIM in December 2015, and upgraded its expectations for the UK market.

In the year to April 30, Purplebricks saw its loss on ordinary activities before tax reduced to £6.059mln, down from an £11.90bn loss a year earlier, as revenue more than doubled to £46.7mln, up from  £18.6m in 2016.

Investors will be hoping for more of the same in the first half of this year.

RPC Group packing a punch

A second quarter update from mid cap plastic packaging firm RPC Group PLC (LON:RPC) on Thursday should confirm the good start to the year highlighted in its first quarter statement released in July.

The group said then that its revenues were well up on last year, while profit margins were higher than expected, and a £100mln share buy-back scheme added to the positive sentiment.

RPC said it was planning to focus on integrating its many recent acquisitions so any update on that will be of interest to the market.

Significant events expected on:

Monday September 25:

Trading updatePennon Group plc (LON:PNN)

Finals: MJ Gleeson PLC (LON:GLE)

Interims:  Amerisur Resources PLC (LON:AMER), Elecosoft PLC (LON:ELCO), Nasstar Plc (LONLNASA), Osirium Technologies PLC (LON:OSI), SimiGon Limited (LON:SIM), Sprue Aegis PLC (LON:SPRP), Trinity Exploration & Production PLC (LON:TRIN)

Economic date: German IFO business climate index

Tuesday September 26:

Trading update: Carnival Corp (Q3) (LON:CCL); Thomas Cook Group PLC (LON:TCG), United Utilities PLC (LON:UU.)

Finals: Animalcare Group PLC (LON:ANCR), Close Brothers Group PLC (LON:CBG), Mysale Group PLC (LON:MYSL), Netcall plc (LON:NET), Transense Technologies PLC (LON:TRT)

Interims: Altitude Group PLC (LON:ALT), AG Barr PLC (LON:BAG), Card Factory PLC (LON:CARD), Ebiquity plc (LON:EBQ), e-Therapeutics PLC (LON:ETX), Faroe Petroleum plc (LON:FPM), GYG PLC (LON:GYG), Horizon Discovery Group PLC (LON:HZD), Inspiration Healthcare Group PLC (LON:IHC), Instem Plc (LON:INS),  Mortgage Advice Bureau Holdings PLC (LON:MAB1), Minds + Machines Group Limited (LON:MMX), Moss Bros Group plc (LON:MOSB),  Mi-Pay Group PLC (LON:MPAY), Personal Group Holdings plc (LON:PGH),  Premier Technical Services Group PLC (LON:PTSG),  S&U PLC (LON:SUS), Taptica International PLC (LON:TAP), Time Out Group Plc (LON:TMO), Universe Group plc (LON:UNG)

Economic data: US new home sales; University of Michigan economic sentiment report

Wednesday September 27:

Finals: Avingtrans PLC (LON:AVG), Hotel  Chocolat Group PLC (LON:HOTC)

Interims: Boohoo.com PLC (LON:BOO), Circassia Pharmaceuticals PLC (LON:CIR), Crawshaw Group PLC (LON:CRAW), Destiny Pharma PC (LON:DEST), Eden Research PLC (LON:EDEN), Havelock Europa plc (LON:NVE), Patagonia Gold plc (LON:PGD), Strix Group PLC (LON:KETL), RedT Energy PLC (LON:RED), Summit Germany Limited (LON:SMTG), Xeros Technology Group PLC (LON:XSG)

Trading update: Grainger PLC (LON:GRI)

Economic data: Nationwide house prices; final reading UK Q3 GDP; CBI distributive trades report; US durable goods orders,; US pending home sales

Thursday September 28:

Trading update: TUI AG (LON:TIU), RPC Group PLC (LON:RPC), 3i Infrastructure PLC (LON:3IN)

Finals: Allergy Therapeutics  PLC (LON:AGY), Clinigen Group PLC (LON:CLIN), Hansard Global PLC (LON:HSD), Inland Homes PLC (LON:INL), Produce Investments PLC (LON:PIL)

Interims: Carillion PLC (LON:CLLN); Air Partner PLC (LON:AIR), ECSC Group PLC (LON:ECSC), Frontier Smart Technologies Group Limited (LON:FST), Harvey Nash Group plc (LON:HVN), Microsaic  Systems PLC (LON:MSYS), Midatech Pharma Plc (LON:MTPH), Netscientific PLC (LON:NSCI), Tissue Regenix Group PLC (LON:TRX)

Ex-dividends to clip 0.7 points off FTSE 100Hargreaves Lansdown PLC (LON:HL.), Intertek Group PLC (LON:ITRK), Wm. Morrison Supermarkets PLC (LON:MRW), Smurfitt Kappa Group PLC (LON:SKG), Worldpay Group PLC (LON:WPG)

Economic data: US final third quarter GDP; US weekly jobless claims

Friday September 29:

Trading update: Purplebricks Group PLC (LON:PURP)

Finals: CVS Group PLC (LON:CVSG)

Interims: Styles & Wood Group PLC (LON:STY), Zegona Communications PLC (LON:ZEG)

Economic data: US personal income, consumption; Chicago PMI; final University of Michigan consumer sentiment reading

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