Supermarket group Tesco PLC (LON:TSCO) aims to report an 11th consecutive quarter of like-for-like sales growth in the UK when it reports first-half results.
Tesco's shares hit all-time highs in August, reflecting the confidence felt by investors and shared by the management. The supermarket group saw underlying first-quarter UK sales growth of 2.1% and is tipped to keep the trend up this week after a busy 2018 for the retail giant.
Recent agreements have hinted at continued optimism within the business: the ink on the Booker deal had barely dried when the UK’s largest supermarket chain announced a supply alliance with Carrefour.
REVEALED: Is Tesco's new store Jack's really any cheaper? https://t.co/4u2ksxleTQ pic.twitter.com/HxMMeDeArc
— The Sun (@TheSun) October 2, 2018
Chief executive officer Dave Lewis will tell you the job is certainly not done, though. Aldi and Lidl have forced the likes of Tesco and the other ‘Big Four’ supermarkets to trim their prices at a time when input costs have been rising.
In response to those pesky discounters, Tesco recently unveiled its own cheap-and-cheerful chain, Jack’s. The City will be on the lookout for more detail on the plans for the initial roll-out and beyond in the results statement.
READ Tesco set to deliver 11th consecutive quarter of UK sales growth
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— Warren Kozera (@WarrenKozera) October 2, 2018
Avingtrans (LON:AVG), which designs, manufactures and supplies critical components, modules and associated services to the energy and medical sectors, looks to have made a terrific acquisition in Hayward Tyler.
READ Hayward Tyler agreesmerger with fellow AIM engineer Avingtrans
The contracts have been rolling in, with two announced last month alone. Those contracts will have arrived too late to influence the results for the year to the end of May but should underpin confidence in the group’s ability to meet the current year’s targets.
READ Avingtrans jumps as Hayward Tyler units secures another US$3mln worth of new contracts
The market is expecting the company to report revenue of £79.84mln and pre-tax profit of £2.14mln but those numbers are tipped to rise to £96mln and £4.21mln in the current fiscal year.
Significant announcements expected
Interims: Tesco PLC (LON:TSCO)
Finals: Avingtrans PLC (LON:AVG)
Traffic figures: International Airlines Group PLC (LON:IAG)
Economic data: UK services PMI; US ADP employment report; US ISM non-manufacturing index; US services PMI