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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Week Ahead: Bellway expected to have put in solid finish to eventful year

Big names reporting include Bellway, Dixons Carphone, John Wood Group, Go-Ahead Group, PZ Cussons and Berendsen

Though it has been an interesting second half to the year for UK house builders, Bellway's statement on Tuesday should be low on surprises.

The group has already reported, at the time of its October full-year results statement, that trading since the EU referendum result had remained resilient, while news flow from its rivals in the sector has been mostly benign.

“Overall we expect trading to have remained robust, albeit we are now in the slower months of the year for trading,” said broker Peel Hunt.

Retailer Carpetright is also a hostage to the housing market, but it has been having a tougher time of it than the house builders.

Near the end of October it reported that like-for-like sales in the preceding 25 weeks in the UK had been down 2.9% in the UK, though at least the full-year profit expectations were left unchanged by the board.

Peel Hunt has forecast half-year profit before tax of £5.7mln, down from £9mln at the interim stage last year. Deutsche Bank is more pessimistic, and has forecast profits of just £4.4mln, citing competitive pressures and the disruption from store refurbishment as reasons for the sharp decline.

The retailer's sales and gross margins are being hit by competition from Tapi Carpets, a company run by Martin Harris, son of Baron Harris, Carpetright's founder.

Harris junior left Carpetright, where he was development director, a couple of year back after 23 years with his father's company.

Currency pressures have already resulted in price increases, and there are clear UK macro downside risks in 2017/18

Electrical goods seller Dixons Carphone reports ahead of the big Christmas shopping season, and should give a clue as to how well so-called Black Friday and Cyber Monday went.

Deutsche's forecast is for underlying earnings (EBIT) of £162mln and headline profit before tax of £142mln.

“We expect Dixons Carphone to report another period of healthy profit growth, helped by continued positive like-for-like growth in the UK,” Deutsche said.

“The company may comment qualitatively on trading after the period end, including Black Friday, which seems to have been well-executed. Only half the job has been done, and so we would be surprised to see consensus move or for guidance to change until the business has traded through all of December,” it added.

Significant announcements expected

Monday

Interims: Eco Animal Health Group Plc (LON:EAH), Ensor Holdings PLC (LON:ESR)

Tuesday

Finals: Hollywood Bowl Group Plc (LON:BOWL), Pressure Technologies Plc (LON:PRES), Zytronic PLC (LON:ZYT)

Interims: Begbies Traynor Group PLC (LON:BEG), Byotrol PLC (LON:BYOT), Carpetright PLC (LON:CPR), Eurocell PLC (LON:ECEL)

Trading statements: Bellway PLC (LON:BWY)

Wednesday

Interims: Dixons Carphone (LON:DC.), FreeAgent Holdings Plc (LON:FREE), Micro Focus International PLC (LON:MCRO)

Trading statement: John Wood Group PLC (LON:WG.)

Thursday

Finals: Falanx Group Plc (LON:FLX)

Trading statement: Centrica PLC (LON:CNA), Go-Ahead Group PLC (LON:GOG). Petrofac Ltd (LON:PFC), PZ Cussons PLC (LON:PZC)

Friday

Finals: Trinity Mirror PLC (LON:TNI)

Interims: Polar Capital Technology Trust Plc (LON:PCT)

Trading statements: Berendsen PLC (LON:BRSN)

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