WEEK AHEAD: The panto season is upon us, and lead villain Mike Ashley is due on stage

He's already told us he's not Santa, but can Mike Ashley deliver a Christmas present for Sports Direct investors?

Proactive Published 04/12/2016

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Christmas pantomime season is fast approaching and what better way for City folk to start the fun and games than a Sports Direct trading update.

Yes, it’s MPs’ least favourite sportswear company’s interim results, but this year there will be a twist.

Having been offstage hitherto, it is the first time that the results will be presented by many in the City’s number one pantomime villain Mike Ashley.

Up until now the Newcastle United owner and Sports Direct founder was executive deputy chairman, but he took over as chief executive in September following the departure of veteran Dave Forsey.

The change followed sustained criticism of working practices at the company’s Shirebrook warehouse from the media, MPs and even a fair chunk of Sports Direct’s investors.

Since when there have been almost farcical scenes involving Ashley branding wads of fivers, MPs turning up uninvited at Shirebroook to inspect it for themselves and a profit warning blamed on the flash crash of sterling after Brexit.

The latest news this week was an investigation in to the relationship between Sports Direct and a firm run by Ashley’s brother John, Barlin Delivery.

What will happen Thursday?

Well, we know the numbers more or less.

After a number of profit warnings including the flash crash loss at £15mln, Sports Direct has indicated underlying annual profits this year will be around £285mln.

That may change again though for currency movements since October.

At the time of the flash crash warning Peel Hunt said it suspected Sports Direct might be one trading-related downgrade away from the bottom, next week may be the time we find out.

While Sports Direct will likely take most column inches on Thursday, keep an eye out for Capita Group (LON:CPI) which will give investors a taste of what’s to come in its final results which are just around the corner.

Given that infrastructure is the hot topic at the moment after Donald Trump’s victory and the Chancellor’s Autumn Statement last week, it will be interesting to see what the outsourcing group made of it all.

In theory, the outlook should be a bit better for Capita after a difficult year of reorganisation, contract delays, contract disputes and, of course, a profit warning.

As you’ll probably remember, Capita warned on its profits back in September and guided revenue growth down to 4-5% for the year, while it expected profit before tax to come in between £535mln and £555mln.

The markets will be looking to get an update on problems that the company has flagged in recent months, most notably the contractual dispute with the Co-Op Bank.

Analysts will also be keeping an eye on the cost-reduction strategies implemented recently and what benefits the firm anticipates to gain from the new operating and management structure introduced only a couple of months ago.

Into the small caps, and Real Good Food PLC (LON:RGD) will publish its interims on Tuesday (6 December).

The ingredient specialist hinted in September that it would look to kick start dividend payments at the end of 2017 after a strong start to the year, so investors will be looking for any news about this.

The premium baking arm also showed solid growth in the first couple of months of this financial year and shareholders will hope trading has continued in this vein.

It is also expected to update investors on the progress it is making across the pond as Real Good looks to build on the progress made at the end of its last year when it swung back to a profit.