Investors already know that AA PLC’s (LON:AA.) full-year results on Wednesday will be at the top end of expectations thanks to February’s pre-closing trading update.
All eyes will, therefore, be on whether that improvement can be sustained, which could be welcome change for the company given the battering its share price has faced in recent years.
The AA provides breakdown services for all new vehicles made by VW, Jaguar, Land Rover and many more.
These partnerships account for almost four-fifths of all AA customers, and progress in this division is more important than ever as the number of higher-margin personal memberships fell last year.
At the half-way stage of its year in July, the company had net debt of more than £2.5bn, and the dividend won’t surpass 2p until cash flows improve.
Potential legal headache for Stagecoach
When it reports a trading update on Wednesday, it could be legal issues providing the most pain to FTSE 250-listed train operator Stagecoach Group PLC (LON:SGC) after a class action lawsuit was filed at the end of February by passengers alleging the firm alongside FirstGroup PLC (LON:FGP) and Go-Ahead Group PLC (LON:GOG) were overcharging on London’s southern commuter routes.
There may also be expectations of an update on Stagecoach’s East Midlands rail franchise, which was granted a short-term extension by the Department for Transport to 18 August from the previous end date of 3 March, as the company previously said it expected to net a “modest profit” from the agreement.
Topps Tiles struggles in difficult retail market
Away from the blue chips, mid-cap retailer Topps Tiles Plc (LON:TPT) has been overhauling its business to bring it up to speed with the digital age amid tough competition from online retailers.
As part of a turnaround plan to address sluggish sales, Topps has closed some of its stores and turned its focus to improving its online offering.
Last time we heard from Topps, the company said like-for-like revenue fell 1.4% in the first three months of the fiscal year as it continued to struggle in a flagging UK market.
Topps will update the market on Wednesday with a first-half trading statement and investors will be looking for signs that the retailer’s strategy to move sales online has paid off.
New regulations hit CMC Markets revenues
CMC Markets Plc (LON:CMCX) has already warned that it expects full-year revenues to be hit by a regulatory clampdown on spreadbetting platforms.
The FTSE All Share-listed firm, which publishes its full-year trading update on Wednesday, in February downgraded its estimates for contract for difference and spreadbet revenue to be between 25% and 35% lower, compared to previous guidance for a 20% reduction.
New regulations designed to limit traders’ losses were brought in at the end of the summer and have weighed on the spreadbetting industry.
CMC has been trying to adapt to the regulatory changes but market conditions were challenging in the first two months of the year.
Chief executive Peter Cruddas has said he believes the industry will benefit from the new regulation over the medium-term and CMC is “strongly positioned to do so across its business due to its investment in leading technology and strategic diversification through its stockbroking and institutional businesses”.
UK services PMI expected to show growth
There will also be a smattering of UK data on Wednesday in the form of the latest purchasing manager’s report for services.
Being the largest sector, services have been leading the UK economy forward and is still expected to show growth during March with the index in February at 51.3.
Significant announcements expected for Wednesday April 3:
Trading updates: Stagecoach PLC (LON:SGC), Topps Tiles Plc (LON:TPT), CMC Markets Plc (LON:CMCX)
Finals: The AA PLC (LON:AA), Minds + Machines Group Limited (LON:MMX), Shield Therapeutics PLC (LON:STX), JTC PLC (LON:JTC)
Interims: Applied Graphene Materials PLC (LON:AGM), Gattaca PLC (LON:GATC)
Economic data: UK services PMI; US ISM non-manufacturing; US non-manufacturing PMI