A day ahead of results from supermarket giant Tesco PLC (LON:TSCO), food-on-the-go specialist Greggs plc (LON:GRG) will update investors on Tuesday, with healthier options being introduced by the bakers alongside its traditional sausage rolls and pasties.
The company saw profits fall in the first half largely as a result of restructuring charges, and shareholders will want to start seeing evidence that the business overhaul is paying off.
Sales actually rose in the opening six months of the year though thanks to the new, healthier additions to its menu. With the UK consumer becoming increasingly health-focused, it will be interesting to see if Greggs is planning on introducing any other ‘balanced choice’ products.
Store roll-out plans will also be eyed, with Berenberg claiming last month that Greggs has the potential to increase its store number by “high double digits per annum” in the coming years.
As with other retailers, Greggs said over summer it was aware of “pressures on consumers’ disposable income”, so investors will want to hear about its outlook for the UK consumer and current trading.
Ferguson name change will focus former Wolseley
Ferguson Plc (LON:FERG) – the blue chip plumbing supplies group formerly known as Wolseley – will report the first results under its new guise on Tuesday.
In a preview, George Salmon, equity analyst at Hargreaves Lansdown noted: “The change away from Wolseley didn’t come about as the result of some form of identity crisis, rather an attempt to more accurately align the group to the its most significant brand in its largest market.“
The analysts said: “With 84% of trading profit coming from the US ‘Ferguson’ branded commercial and residential plumbing supplies business, all eyes will again be on this division. In particular, will the recent bout of hurricanes have any bearing on business activity.”
He added: “Looking further afield, the group may announce what it intends to do with the cash generated by the sale of its Nordic business.”
St Ives going forward
Full year results from international marketing services group St Ives Group PLC (LON:SIV) should be upbeat, with the firm having issued an encouraging trading update on August 10 stating that results would be at the 'top end of the range'.
On September 21, the group announced a contract with Sainsbury's PLC (LON:SBRY) in Marketing Activation would not be renewed but said this would not impact current year forecasts due to stronger trading in Strategic Marketing.
Numis Securities forecasts St Ives reporting full-year pretax profit of £24.0mln and earnings per share of 13.2p.
Significant events expected on Tuesday October 3:
Trading updates: Electrocomponents PLC (LON:ECM), Greggs plc (LON:GRG), ITE Group PLC (LON:ITE)
Finals: Ferguson Plc (LON:FERG), Revolution Bars Group PLC (LON:RBG), SCS Group PLC (LON:SCS), St Ives PLC (LON:SIV)
Economic data: UK construction PMI report