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The Markets
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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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Pharma & Biotech

Tuesday's agenda: Dixons Carphone in the driving seat

Dixons had a good Black Friday; what about the red & green Christmas?

Dixons Carphone is a bit slow off the mark with its Christmas trading update, but then it did release its interims just over a month ago.

“The all-important peak trading period appeared to have started well, with the group reporting a strong Black Friday,” noted Matthew Taylor at Numis Securities.

“The group is expected to have traded solidly over the peak season against highly demanding comparatives, with consensus forecast LFLs [like-for-likes]of +4% in the UK (vs c.+8% LY [last year]), +1% in the Nordics (vs c.+6%) and +2.5% in S Europe (vs +8%),” Taylor added.

Crest Nicholson's management has targeted revenue to grow to £1.4bn by 2019, which looks a big ask based on forecasts for the year just ended.

The consensus forecast for the year to the end of October is for revenue of £796.5mln and profit before tax (PBT) of £151.4mln, but as Peel Hunt pointed out, new divisions in London and the Chilterns have yet to mature, and should kick-start rapid top-line growth.

“We forecast operating margins of 20.4% and PBT growth of c30% to £153mln. Dividend cover of 2.5x should drive a full-year DPS [dividend per share] of c19p,” the broker forecast.

It tips volumes will be up by about 7% year-on-year while the average selling price is tipped to have risen 17% from the previous year.

Significant announcements expected

Interims: PZ Cussons (LON:PZC).

Finals: Crest Nicholson (LON:CRST), Tern (LON:TERN)

Trading statements: Brooks Macdonald (LON:BRK), Card Factory (LON:CARD), Carpetright (LON:CPR), Dixons Carphone (LON:DC.), easyJet (LON:EZJ), Greencore (LON:GNC), Intermediate Capital Group (LON:ICP)

Economic: US – S&P/Case-Shiller HPI Composite, Markit Services PMI, Conference Board Consumer Confidence, Richmond Manufacturing index. UK – Nationwide House Prices, BBA Mortgage Approvals

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