JD Wetherspoon PLC (LON:JDW) founder Tim Martin is expected to use the pub operator’s Christmas trading update on Thursday to get on his Brexit high-horse again.
Martin is well-known for his pro-Brexit stance and his criticism of the European Union, using previous results statements to rant about his views.
In the group’s last update, which covered the first quarter, Martin argued that he believes leaving the EU would result in getting rid of tariffs on food imported from outside the bloc.
As for the figures, Wetherspoon reported a 4.3% increase in sales in the 13 weeks to October 29, or 6.1% growth on a like-for-like basis. The operating margin was unchanged at 8.6%.
Numis said it expects a 10 basis point improvement in the underlying earnings (EBIT) margin for fiscal year 2018 with positive operational gearing offset by a 5% increase in average wages and small decline in gross margins.
“This gives earnings per share growth of 7%, well above average for the sector,” said analyst Tim Barrett.
Stationary retailer WH Smith Plc (LON:SMWH) joins Wetherspoon in reporting its Christmas trading statement.
The update for the 21 weeks to January 20, covering the bulk of the first half, is expected to show its travel division continued to hold up the company amid tough trading for high street retailers.
The travel arm, which includes WH Smith stores at airports and train stations, delivered like-for-like sales growth of 4% for the full year.
The company’s high street stores, however, saw like-for-like sales drop 4%.
Total revenue was flat but cost savings and an increase in the gross margin in travel helped the group achieve profit growth.
“We expect LFL to have edged higher in the Travel division and for the LFL decline to moderate slightly in the High Street during the period,” said Numis analyst Matthey Taylor.
“Gross margin gains are likely to continue, fully underpinning full year pre-tax profit expectations, in our view.”
Significant events expected:
Trading updates: JD Wetherspoon PLC (LON:JDW), WH Smith Group PLC (LON:SMWH), Fevertree Drinks PLC (LON:FEVR), Sage Group PLC (LON:SGE), Empresaria Group plc (LON:EMR), Hotel Chocolat PLC (LON:HOTC), Getbusy PLC (LON:GETB), STM Group Plc (LON:STM)
Finals: Crest Nicholson Holdings PLC (LON:CRST), Staffline PLC (LON:STAF)
Production reports: Fresnillo PLC (LON:FRES), Polymetal PLC (LON:POLY)
Economic data: UK unemployment, average earnings; US house price index