Tuesday– Asos, Sprue Aegis, Panmure Gordon
ASOS plc (LON:ASC) reports its interims on Tuesday with analysts expecting strong results as the online fashion retailer continues to grow in popularity.
Investors cheered the company’s January trading statement when it reported a 36% increase in retail sales to £605mln for the first four months of the financial year and upgraded its full year guidance.
The growth was driven by international sales, which jumped 52%, while UK sales rose 18%.
The group’s decision to expand its international business has proven to be good decision, particularly as the UK clothing market comes under pressure from rising inflation following the Brexit vote.
The retailer said in its trading update that it expects full year sales to rise 25% to 30%, compared to an initial forecast of 20% to 25%.
Any revisions to its annual guidance will be closely monitored in the interims.
AJ Bell said analysts expect full year pre-tax profit of £80mln, compared to last year’s stated figure of £35mln. It also said to watch out for capital investment, which is forecast to come in between £150mln and £170mln as Asos invests in a European distribution centre, upgrading its Barnsley site and a warehouse in the US.
AJ Bell added: “Asos may be quoted on AIM, the London Stock Exchange’s self-regulated junior platform, but it currently has a market capitalisation of £4.5bn – that would be enough to get it into the FTSE 100 if the company ever chose to seek promotion to the main market.”
A year on from posting record numbers, and even the most pessimistic Sprue Aegis Group PLC (LON:SPRP) investor wouldn’t have thought 2016 would have been as difficult as it was.
Shares in the safety product supplier were hammered as early as April last year when it revealed problems with certain models of its smoke alarms.
That incident forced it to up its warranty provision to £6.8mln which meant operating profits for 2015 were nearer to £7mln than the £12mln it announced previously.
On top of that, overstocking in France and weak sales in Germany both dragged on the bottom line in the first half of 2016. The problems in France persisted into the second half, although sales in Germany did pick up as the year went on.
A new carbon monoxide awareness campaign was launched last November in France which had an initial positive impact on sale, so investors will be keeping a close eye to see if this has had a more sustained effect.
In that same update, Sprue Aegis also told investors that it had launched its Wi-Safe Connect product range in Germany which allows customers to remotely monitor in real time their alarms.
The Internet of Things is one of the fastest growing sectors, so a successful first venture into the space could bode well for the company’s outlook, which remains unclear even after the recent trading update.
There was also the £2.8mln acquisition of software from Intamac, which it said at the time would “significantly extend” its capabilities, so watch for any mention of how this is faring.
The main thing investors will be looking out for is that the “key challenges” from the past 12 months – namely sales in France and issues with the alarms – are behind them.
As for the headline numbers, Sprue flagged those pretty well back in January and they’re expected to hit reduced market expectations.
After the £0.9mln loss it posted in the first half, the full-year operating profit is forecast to come in at £2.1mln on total sales of £57.1mln (2015: £88.3mln).
Panmure Gordon & Co. Plc (LON:PMR) will post its full year earnings on Tuesday, a week later than it had originally planned.
The stockbroker’s decision to delay the publication of the results came in the wake of agreeing to be taken over by former Barclays plc (LON:BARC) chief executive Bob Diamond and a Qatari investment bank. The takeover was announced on 17 March.
Further details on the progress of the deal will be a key focus of Panmure’s results, along with how its full year performance will benefit (or not) its new owners.
In January said it expects to return to full year profit and positive operational cash flow along with an increase in revenue to about £27mln from £23mln the prior year.
Thursday
Electrocomponents PLC (LON:ECM) may not set many pulses racing but it’s a good guide to the industrial heartbeat.
It’s also been a great investment over the past year. Shares have doubled and the company is now valued at more than £2bn.
Indeed, the company now is a global business but with a large European component what it says about the future will be keenly watched following Article 50.
The last recent trading update showed a pick up in the core electronics distribution activities and brokers expect more of the same on Thursday.
Some even suggest that with recent good sales strength in the North America upgrades may follow.
Monday 3 April
Finals: Luceco PLC (LON:LUCE); Filta Group Holdings PLC (LON:FLTA); Globaltrans Investment Plc (LON:GLTR)
AGM/EGM: CVC Credit Partners European Opportunities Ltd(LON:CCCE)
Tuesday 4 April
Interim: ASOS plc (LON:ASC); Nanoco Group PLC (LON:NANO)
Finals: Panmure Gordon & Co PLC (LON:PMR); Sprue Aegis Plc (LON:SPRP); Shield Therapeutics PLC (LON:STX); Central Asia Metals PLC (LON:CAML); Next Fifteen Communications Group PLC (LON:NFC); Midatech Pharma Plc (LON:MTPH)
Wednesday 5 April
Finals: Learning Technologies Group (LON:LTG); HSS Hire Grp Plc (LON:HSS)
Thursday 6 April
Finals: Zegona Communications Plc (LON:ZEG); PureTech Health Plc (LON:PRTC); Gulf Keystone Petroleum (LON:GKP); MP Evans Group PLC (LON:MPE)
AGM / EGM: Banco Santander SA, Leeds Building Society, Catco Reinsurance Opportunities Fund Limited C, Axiom European Financial Debt Ltd
Trading statement: Electrocomponents PLC (LON:ECM)
Friday
Finals: AFI Development Plc (LON:AFRB)