Blue chip drinks firm Diageo plc (LON:DGE) holds its annual general meeting on Thursday, with a trading update likely to be delivered to shareholders.
Analysts at UBS expect the year to have started well for the Johnnie Walker whisky to Guinness stout maker, predicting growth of 5% for the year-to-date, so comments about performance in key markets should be broadly positive.
Additionally the Swiss bank’s analysts believe Diageo’s management will reiterate mid-term guidance for top line growth and cumulative margin progression of +175 basis points by 2019, with UBS’s forecast for 200 basis points.
They added: “In our opinion, margin target is likely to be beaten as we assume mix improvements to continue as well as good momentum in Emerging Markets. We also note ongoing support from Diageo's £2bn buyback.”
Saudi growth eyed for Lamprell
Arguably it is one of the less focused upon oil/offshore services stocks, so results from Lamprell PLC (LON:LAM) won’t have quite the same amount of attention on them as the likes of peers Petrofac PLC (LON:PFC and John Wood Group PLC (LON:WG.).
Indeed, it has been renewable energy contracts – namely the East Anglia One offshore wind project – that has troubled the UAE-based engineer in recent financial period as much as anecdotally weaker oil and gas business.
In July’s trading update, chief executive Christopher McDonald told investors that it had been “confronting and addressing the challenges of 2018”. At that time, he added: “We are heavily focused on rebuilding the backlog and delivering a successful outcome for our client on the East Anglia One project.
“With the good bidding activity levels and our ability to nurture key relationships with our partners, I remain confident that Lamprell is well positioned for growth as the wider energy market recovers."
Naturally, investors will be keen to see improved financials (March’s full-year results showed losses) as well as confirmation of improved project delivery and, ideally, some positive commentary around the order-book and outlook for the remainder of the year.
Specifically, they will ideally hear more about Lamprell’s intended growth in Saudi Arabia where it has been working to qualify as a contractor to Aramco.
Thursday September 20:
Interims: Lamprell PLC (LON:LAM), Summitt Therapeutics PLC (Q2) (LON:SUMM), The City Pub Group PLC (LON:CPC), hVivo PLC (LON:HVO), Modern Water PLC (LON:MWG), Safestyle UK PLC (LON:SFE), Science in Sport PLC (LON:SIS), Scisys Plc (LON:SYS), Venture Life Group PLC (LON:VLG)
Finals: Brooks Macdonald Group plc (LON:BRK), Diurnal Group PLC (LON:DNL), Inland Homes Plc (LON:INL), Kier Group PLC (LON:KIE)
AGMs: Diageo plc (LON:DGE), GlaxoSmithKline plc (LON:GSK), Ryanair PLC (LON:RYA)
Ex-dividends: GVC Holdings PLC (LON:GVC)
Economic data: UK retail sales; US weekly jobless claims; US existing home sales; Philly Fed business outlook survey