Shareholders have been promised a “significant step-up in profitability” when Bovis Homes Group PLC (LON:BVS) reports its half-year results on Thursday.
The company has been the runt of the house-building litter during the recent housing boom but it appears to be getting its act together on the quality control front, albeit just as interest rate rises are set to make things cloudy for the sector.
We already know that total completions stood at 1,580 in the six months ended June 30, up 4% from 1,512 the same period a year ago.
The recent spell of good weather might have enabled the company to accelerate completions but management has been careful of late to ensure that quality is given priority over quantity, given the reputational damage the company suffered when its standards slipped.
Shareholders will be hoping for more details on margins, which management had previously said are up year-on-year, without specifying to what extent.
Dixons tackles tough retail market and higher costs
There is also a new man at FTSE 250-listed electricals retailer Dixons Carphone Plc (LON:DC.) and he has already warned that its profits this year will be weighed by higher costs as it undergoes a major restructuring.
Alex Baldock, who took over as chief executive from Sebastian James in April, has said his turnaround plan for the retailer would take time so the company is unlikely to show much progress in its first quarter update on Thursday.
The restructuring includes shutting down 92 stores this year in response to an increase in consumers opting to shop online.
In June, the company posted a sharp fall in profits to £382mln in the year to 28 April 2018 from £500mln last year and said it profits to fall to £300mln in the current year, largely due to higher minimum wage requirements and IT depreciation.
The group is also having to tackle sector-wide problems, with phone upgrades lessening and consumer confidence weakening in the UK.
Given the challenges the company is facing in the early stages of its restructuring, the first quarter update will probably not bring too much joy to investors.
The focus will be on its sales performance and any changes to full year guidance.
Transformed Melrose Industries to update
Elsewhere, eyes will most certainly be on the integration of the acquired GKN assets as Melrose Industries PLC (LON:MRO) reports on Thursday, after the corporate arm-wrestle concluded earlier this year.
“It may say Melrose on the wrapper, but it’s GKN in the tin,” said Laith Khalaf, analyst at stockbroker Hargreaves Lansdown.
“Having emerged the winner from one of the biggest hostile takeovers in recent British history, all eyes will be on what Melrose has been up to with its first four months in charge of the aerospace and automotive engineer.
Khalaf added: “At the time of the bid, Melrose committed to substantially improving margins and profits, while investing in the business going forwards.
“Thursday’s half year results will be an early chance for the turnaround specialist to demonstrate how that’s going to be achieved.”
Meanwhile, recent reports have suggested Melrose may be looking for possible buyers of GKN’s powder metallurgy division and investors will also be keen to hear any developments regarding the Nortek business and the restructuring of the Brush which unit.
Thursday September 6:
Trading updates: Dixons Carphone Plc (LON:DC.), McCarthy & Stone PLC (LON:MCS)
Interims: Bovis Homes PLC (LON:BVS), Melrose Industries PLC (LON:MRO), Curtis Banks Group PLC (LON:CBP), Deepmatter Group PLC (LON:DMTR), Hunters Property PLC (LON:HUNT), International Public Partnerships Ltd (LON:IMPP), Just Group PLC (LON:JUST), MPAC Group PLC (LON:MPAC), PPHE Hotel Group PLC (LON:PPH)
Finals: Go-Ahead Group PLC (LON:GOG), Mcbride PLC (LON:MCB), Avation PLC (LON:AVAP)
Traffic numbers: easyJet PLC (LON:EZJ)
Ex-dividends to knock 9.24 points off FTSE 100 index: Admiral Group PLC (LON:ADM), Antofagasta PLC (LON:ANTO), BHP Billiton plc (LON:BLT), CRH PLC (LON:CRH), Glencore PLC (LON:GLEN), Land Securities PLC (LON:LAND), RSA Insurance Group PLC (LON:RSA), Shire Plc (LON:SHP)
Economic data: US weekly jobless; US Challenger job cuts; US services PMI index; US factory orders; US non-manufacturing ISM