Half-year results from Kingfisher PLC (LON:KGF), could be on the bleak side if last month’s trading update is anything to go by,
The DIY stores owner then reported a 1.9% drop in like-for-like sales for the second quarter as the group continued to be hit by weak trading in France.
The retailer - which owns the B&Q and Screwfix chains in the UK and the Castorama and Brico Depot stores in France - said like-for-like sales in France fell 3.3% in the three months to 31 July and were down 1.0% in the UK and Ireland.
The shares took a pounding and the apparent remedy for Kingfisher’s ills – its “ONE Kingfisher” strategy – was said to be partly responsible for the poor performance in the second quarter, as the overhaul of operations caused disruption.
One of the key things in the interim results statement will be the full-year guidance. Last month Kingfisher said it was happy with consensus forecasts and although it has only been a month, trading can change as fast as the weather for a home improvements retailer.
The trading statement from Babcock International Group PLC (LON:BAB), the engineering support services company, will cover performance in the months of July and August.
“We expect an update on the order book and pipeline, which were £19bn and £10.5bn respectively in July, and leverage, which is guided to 1.6x by FY18,” said Morgan Stanley.
Graham Spooner, an investment analyst at retail investor-focused The Share Centre, said investors will be keen to hear any news relating to new warships and for the group to reiterate confidence for full year revenue growth targets.
“Other areas to concentrate on will be international operations and updates on nuclear projects,” Spooner said.
Significant announcements expected
Interims: Kingfisher PLC (Q2) (LON:KGF), Accesso Technology Group PLC (LON:ACSO), Attraqt Group PLC (LON:ATQT), Cambian Group PLC (LON:CMBN), Science in Sport PLC (LON:SIS), Shield Therapeutics PLC (LON:STX)
Trading update: Babcock International Group PLC (LON:BAB)
Economic data: UK retail sales, CBI industrial trends survey; US existing home sales