As the count-down to the end of the summer continues – in parallel with the North Korea nuclear count-down it seems – just a smattering of corporate updates will be dispatched on Wednesday.
Among them, a pre-close season trading update from WH Smith PLC (LON:SMWH) is likely to maintain full year guidance although historically the retailer has not included any actual numbers at this stage.
In a preview, analysts at UBS said the update is likely to highlight a gross margin uplift and say cost savings remain on track but that conditions on the High Street remain challenging.
The Swiss bank forecasts second half like-for-like sales growth of 4% for WH Smith’s Travel business, implying around 3% growth for the fourth quarter compared to 5% in the third quarter and the first half as comparatives get slightly tougher.
On the High Street, the UBS analysts assume no improvement from the 4% like-for-likes sales decline in the third quarter, even against a slightly easier comparative from last year.
New broom at HSS Hire
First half numbers from HSS Hire Group PLC (LON:HSS) will be the first to be delivered by new chief executive officer, Steve Ashmore, who only joined the firm on June 1 having previously held executive roles at Exel, Wolseley and Brammer.
In a pre-close season trading update on July 4, HSS said its underlying revenue in the second quarter was “marginally ahead of the prior year with an improving Rental revenue trend”.
Ashmore had commented: "Having only joined the Group towards the end of the quarter, I have spent the last few weeks familiarising myself with its operations and meeting the team.
“While this process is ongoing, it is already clear to me that we have a fundamentally strong business with the building blocks in place to deliver improved customer experience and shareholder returns.“
In the first quarter, HSS reported an adjusted operating loss of £4.5mlm compared with a profit of £4.9mln a year earlier.
Petrofac probe to dominate
Petrofac PLC (LON:PFC) will be doing well if investors aren’t mostly discussing regulatory matters when the oil services group releases half yearly results on Wednesday.
News of a Serious Fraud Office (SFO) investigation emerged in May, and last week shareholders learnt of censure against chief executive Ayman Asfari for insider trading charges in Italy.
Stockbroker Hargreaves Lansdown highlighted the fact that Petrofac shares are down some 45% since the SFO news, but, cautioned that investors are unlikely to hear more detail on the investigation as part of these results.
“Instead investors should focus attention on the order book,” the broker said in a preview note.
“Petrofac had been struggling to keep a flow of new projects coming onto the books even before the SFO investigation – as low oil prices caused oil producers to delay new developments. An SFO investigation hanging over the group is unlikely to make it a more attractive partner in a market where work is low on the ground and bidding is competitive.”
Significant events expect on Wednesday August 30:
Trading updates: Diploma PLC (LON:DPLM), WH Smith Plc (LON:SMWH)
Interims: BATM Advanced Communications Ltd (LON:BVC), The Gym Group PLC (LON:GYM), HSS Hire Group PLC (LON:HSS), IFG Group PLC (LON:IFG), Petrofac Ltd. (LON:PFC), Pure Tech Health PLC (LON:PRTC)
Economic data: UK consumer credit, M4 money supply; second reading US second quarter GDP