Plumbing and heating products company Ferguson Plc (LON:FERG) is expected to report solid full year sales on Tuesday, boosted by the expansion of its US business.
Three quarters of Ferguson’s revenue comes from the US where growth has been boosted by market share gains, bolt-on acquisitions and a booming construction sector.
Various reports have shown that the momentum in the US construction sector has slowed of late, although new builds remain near their highest levels since the financial crisis.
Analysts expect Ferguson to report sales for the 2018 fiscal year of US$20.43bn, up from US$18.89bn last year. Adjusted pre-tax profit is forecast to rise to US$1.43bn from US$1.25bn a year ago.
Investors hope the extra sales will lead to improved margins as costs are kept in check.
Ferguson has made small, bolt-on deals to help grow the business, and it has previously said that the pipeline of acquisitions remains strong.
Some in the City reckon a bigger deal could be on the cards in the not-too-distant future though, pointing to the low level of net debt despite having made additional payments to shareholders.
Revolution Bars still recovering from hangover of mass management exodus
Takeover target Revolution Bars PLC (LON:RBG) also posts its full year results on Tuesday with analysts expecting lower profits and sales.
Analysts anticipate a 0.5% drop in like-for-like sales with drink sales outperforming food due to a hot summer and the World Cup. Adjusted pre-tax profit is projected to dip to £8.8mln from £9.3mln last year.
In the first half, the bar operator posted an operating loss of £3.7mln as it took a £9.6mln hit from exceptional costs, largely asset impairment charges and costs linked to changing its chief executive to Rob Pitcher.
Mark McQuarter stepped down in October 2017 in the wake of the company’s shareholders rejecting a takeover offer from Slug and Lettuce-owner Stonegate Capital and a merger proposal from nightclub owner Deltic Gropu.
Revolution, which remains in talks about a merger with Deltic Group, has seen a raft of other management changes with the operations director leaving, the property director resigning and four out of 11 managers departing.
On the bright side, the group has seen a good performance at six of its new sites with a further five due to open in the first half of 2019. Trading is expected to pick up in recent weeks under more normal weather conditions.
Significant announcements due:
Finals: Ferguson Plc (LON:FERG), Avacta Group Plc (LON:AVCT), Revolution Bars PLC (LON:RBG), SCS Group PLC (LON:SCS)
Interims: Inspiration Healthcare Group PLC
Traffic figures: Wizz Air PLC (LON:WIZZ)
Economic data: UK construction PMI; Fed chair Jerome Powell speech