As this week’s frenzy of high street trading statements finally take a breather, Friday’s focus will be on the pubs and restaurants sector, with All Bar One, Harvester, and O’Neills chains owner Mitchells & Butlers PLC (LON:MAB) set to reveal its latest update.
With consumer confidence and retail sales surveys recently showing that eating and drinking out has continued to be a growing segment despite a slowdown seen on the high street, M&B is expected to continue to have seen an improvement.
With full-year results back at the end of November, the pub operator reported a return to like-for-like sales growth in current trading..
In the eight weeks following the company’s financial year on September 24, M&B said it saw LFL sales rise 0.5% from a year earlier.
That was a big turnaround from 0.8% year-on-year fall it saw for the full-year, although the trend was clearly improving as second half LFL sales rose 0.2%.
M&B’s full-year pretax profits fell to £94mln, however, down from £126mln a year earlier, reflecting lower total sales but also a weaker margin in the second half as the National Living Wage kicked in.
In December the pubs firm was reported to be planning to rapidly expand its new Chicken Society brand across London.
A newspaper story said M&B has identified as many as 20 pubs across its estate, which could be used to house its new offer which will serve spit-roasted meat, including a whole duck for £23.
Insulated? …
Aside from the M&B update, there is little else on Friday’s corporate diary, although a trading statement from insulation products group SIG PLC (LON:SHI) will be eyed given the firm issued a profit warning on November 11 when its chief executive also stepped down.
In a preview to clients, analysts at Peel Hunt said the full-year update is unlikely to contain much more news.
They said: “We doubt activity has improved materially although mild, wet weather in December may have helped the roofing operations.”
The analysts concluded: “This remains a stock to watch and wait until a new CEO is appointed and an update on the group's direction is provided.”
Elsewhere in the construction products sector, investors will be looking for improvement from Irish builders merchanting firm Grafton Group PLC (LON:GFTU) in a full-year trading update.
Analysts at Peel Hunt are forecasting total revenue growth of 12.4% for 2016, of which around 4% will be a like-for-like sales increase, although margins are expected to be lower as competition in the UK DIY market weighed through the year.
Significant announcements expected Friday …
Trading updates: Mitchells & Butlers PLC (LON:MAB), SIG PLC (LON:SHI), Grafton Group PLC (LON:GFTU), XP Power PLC (LON:XPP)