The oil industry will be in view on Tuesday as oil services group Petrofac issues a trading update for the first part of 2018.
Meanwhile, investors will be hoping that struggling high-street retailer Carpetright has put the worst behind it after a litany of profit warnings.
On the economic data front, there will be UK mortgage lending figures from the British Bankers Association (BBA) in addition to US consumer confidence and house price indexes from across the Atlantic.
Order pipeline news wanted from Petrofac
Commentary around order pipelines and new contract procurement will no doubt be what investors are looking for from oil services group Petrofac PLC (LON:PFC) when it issues an update on Tuesday.
Petrofac, at its general meeting last month, described “good progress” in the year to date as it continued to bounce back from a difficult 2017.
“Tendering activity remains high and the group has been awarded more than US$1.7bn of new orders in the year to date,” chief executive Ayman Asfari said.
A note by Redburn analyst Michael Rae cautioned that investors ought to handle Petrofac ‘with care’, rating the company as a ‘sell’, with the competition, regulation and legal concerns.
“Our updated view of the pipeline and competitive landscape reveals Middle Eastern lump-sum construction is not getting any easier,” Rae said in a note earlier this month.
“Petrofac faces both revenue and SFO-driven uncertainty.”
Plainly, after Petrofac’s troubled recent history there’ll likely be a degree of scrutiny from investors.
Tough year for Carpetright
It’s been a tough time for Carpetright PLC (LON:CPR). The flooring retailer has issued a string of profit warnings over the past year as a squeeze on household incomes, a stagnant property market and changes in the way we shop have knocked sales.
The market already expects to see a loss of £7mln and £9mln in Tuesday’s full-year results, while like-for-like sales in the UK – its core market – are forecast to fall 3.6%.
Investors will be looking for signs that the worst news is now behind them. Earlier this month, Carpetright began to implement its turnaround plan after raising £60mln from investors.
The plan is to close 92 of its worst-performing stores, slash the rent on the remaining 113 sites and cut 300 jobs – actions which chief executive Wilf Walsh said are essential if the company is to “restore our profitability and deliver a successful turnaround”.
Inflation and wages growth are steadily reversing, while recent figures from Barclaycard and the British Retail Consortium have suggested shoppers are opening their wallets again.
Could that provide some much-needed relief for Carpetright and its shareholders?
Significant announcements expected:
Tuesday June 26:
Trading update: Petrofac PLC (LON:PFC)
Finals: Carpetright PLC (LON:CPR), HML Holdings plc (LON:HMLH), Northgate PLC (LON:NTG)
Interims: Blue Prism Group plc (LON:PRSM)
AGMs: Capita PLC (LON:CPI)
Economic data: BBA UK mortgage lending; US consumer confidence; US Case-Shiller house price index