Full year results from Dixons Carphone PLC (LON:DC.) on Wednesday should likely confirm the merged electricals and mobile phones retailer’s bullish trading update released on May 24.
Back then the FTSE 250-listed group - which owns Currys, PC World and Carphone Warehouse in the UK – narrowed its headline full-year pre-tax profit guidance to £485mln-£490mln, against a previous forecast of £475mln-£495mln.
READ: Dixons Carphone up as fourth-quarter sales beat forecasts, profit guidance narrowed
That narrowing came as the firm said its like-for-like group sales increased by 2% in the 16 weeks to April 29, better than the company compiled consensus forecast of 0.9%.
The retailer said its like-for-like sales in the UK and Ireland rose 2%, driven by a strong electricals performance.
Meanwhile likes-for-sales in the Nordic region – where it owns Elkjop and Elgiganten – were also 2% higher, and in southern Europe, where it owns Greek chain Kotsovolos, like-for-like sales increased by 5%.
Dixons Carphone has proved resilient despite worries over the confidence of UK consumers in the wake of last year’s Brexit vote, with a drop in the pound stoking increases in inflation and talk of a possible UK interest rate hike later this year.
As George Salmon, equity analyst at Hargreaves Lansdown, pointed out at the time of the trading update: “The demise of high street rivals like Comet and Phones4u means there isn’t a great deal of ‘real world’ competition for Dixons Carphone’s ‘3-in-1’ mobile, computing and white goods stores.
“Add in the fact that tech is an increasingly important part of our daily lives, and it’s easy to see the upside.”
“However,” he added, “the danger is from the less visible challenge posed by online competitors such as the mighty Amazon. Sterling’s weakness, which raises the cost of importing electricals, is providing another headwind.”
Earlier this month, Dixons Carphone and US mobile network Sprint Corp (NYSE:S) announced that were ending their retail joint venture because of the “changing US mobile market landscape”.
READ: Dixons Carphone to end its US joint venture with Sprint
The UK firm said it is to concentrate its focus on its Honeybee tablet sales software, used under white label by companies such as Apple Inc (NASDAQ:AAPL), which the group will roll out across the Sprint store network.
Acquisitions to boost packaging group DS Smith
DS Smith PLC (LON:SMDS) should also post solid growth in full-year results on Thursday, with the recycled packaging supplier having reported good volume growth in a trading update at the end of April, buoyed by the company's recent acquisitions in Europe and the US.
The FTSE 250-listed firm said in April that it had seen a “progressive performance” in recently acquired businesses, including Portuguese corrugated producer Gopaca bought in November, and Portuguese P&I Displays and Marketing and US plastic packaging provider Parish Manufacturing acquired in December.
In June, after its April 30 year-end, DS Smith unveiled the acquisition of French corrugated box maker DPF Groupe, for an undisclosed amount.
Purplebricks in clover
Few surprises are expected when Purplebricks Group PLC (LON:PURP) reports its full-year results on Thursday.
Thanks to a trading update last month, we know the online estate agent enjoyed a “year of great progress” and that its UK division is expected to turn its first ever profit – at least on an adjusted underlying (EBITDA) basis.
In reality though, the numbers will play second fiddle to what’s happening over in the States; a massive and potentially lucrative market where Purplebricks is hoping to launch later this year.
It said in the May announcement that the US rollout plans are progressing well, but investors will be looking for another update this time around as well as reassurances that the first launch in California is on track.
Economic news – Bank of England’s financial stability report
A big event for economists and currency traders this one as they search for clues on whether an interest rate rise in the UK is coming soon.
Three of eight members of the Monetary Policy Committee voted for a rise at their last meeting, with one, the departing Kristin Forbes saying the bank has to start taking hard decisions.
Andy Haldane, the Bank’s chief economist has also recently expressed a willingness to vote for a rise soon.
Traditionally considered to be one the doves on the committee, he said: “The balance of risks associated with tightening 'too early', on the one hand, and 'too late', on the other, has swung materially towards the latter in the past six to nine months."
The FSR is not an interest rate setting event (that's the MPC's role), rather an overview on when the UK stands monetarily.
Policy issues are likely to be a decision on whether the banks will have to hold a buffer against a dip in the UK credit cycle, stricter controls on consumer lending and mortgage risk assessments.
Main announcements due:
Tuesday 27 June
Trading update: Debenhams PLC (LON:DEB); Petrofac PLC (LON:PFC)
Finals: Carpetright PLC (LON:CPR), IG Design (LON:IGR); BCA Marketplace PLC (LON:BCA); Findel PLC (LON:FDL); Polar Capital Holdings plc (LON:POLR); Photo-Me International plc (LON:PHTM)
Interims: Velocity Composites PLC (LON:VEL); Benchmark Holdings PLC (LON:BMK); Lakehouse PLC (LON:LAKE); Porvair PLC (LON:PRV), Blue Prism Group (LON:PRSM)
Wednesday 28 June
Finals: Xafinity PLC (XAF); Nextenergy Solar Fund Ltd (NESF); Imimobile Plc (LON:IMO); Creightons PLC (LON:CRL)
Thursday 29 June
Interims: Harwood Wealth Management Group Plc (LON:HW.);Tullow Oil plc (LON:TLW)
Finals: Cohort PLC (LON:CHRT); ReNeuron Group Plc (LON:RENE); Purplebricks Group PLC (LON:PURP); DS Smith PLC (LON:SMDS)
Friday 30 June
Final: TLA Worldwide (LON:TLA)