The mid-point of the week will bring results from holidays firm TUI, a company among those hardest hit by the coronavirus crisis, as well as figures from recently bailed out luxury car manufacturer Aston Martin.
Wednesday will also continue the flow of figures from the UK property sector, with results from British Land, as well as a dollop of macro data from the latest UK GDP figures.
TUI updates amid ongoing travel turmoil
TUI AG (LON:TUI) will post half-year results after having suspended “the vast majority of all travel operations” in mid-March due to what was an escalating coronavirus crisis at the time.
Despite many governments lifting lockdown measures, the virus has not gone away, in the UK in particular with one of the highest death tolls in Europe.
TUI last week cancelled a further 143,000 holidays as the tour operator extended the suspension of its operations due to the pandemic until, including aborting all holidays booked to take place before 14 May.
Shares in TUI are down 73% since the start of the year, hit further by bearish comments on Friday from other sector players, including a suggestion from British Airways that demand will not recover to the level of 2019 until 2023 at the earliest.
Aston Martin delivers post-rescue update
Aston Martin Lagonda Global Holdings PLC (LON:AML) will provide a first-quarter update following the completion of its rescue rights issue.
The fundraising, led by Canadian billionaire Lawrence Stroll, who is now executive chairman, pulled in £536mln for the struggling car manufacturer.
Investors will be interested to hear more details about plans from Stroll, whose Yew Tree Overseas Ltd consortium now has a 25% stake, to carry out the “necessary rebalancing of supply to demand” for the company’s core models.
In the short term, the company has revealed that it was reopening its new St Athan production plant in Wales this week, having shuttered all its factories since 25 March as the pandemic closed dealerships and disrupted supply chains in Asia.
With the majority of its workforce currently furloughed, the company’s other factory in Gaydon is scheduled to resume operations “later”.
This time last year, Aston Martin announced the sale of 1,057 cars, up 10%, but with underlying profits down 35% to £28.3mln.
Plans for 2020, which have of course been disrupted, would have seen the launch of the DBX in the second quarter with orders building since the launch last November, the relaunching of the Vantage, plus the deliveries of the Aston Martin Valkyrie and Goldfinger DB5 in the second half.
Compass Group to quantify damage
Compass Group PLC (LON:CPG) releases its interims which should not come as a surprise considering the contract caterer confirmed previous forecasts just a few weeks ago.
In the six months to March 31, 2020, organic revenue growth was 1.6% and the impact on operating profits from lost revenue was 28-29%, so investors will see how profits have been doing.
The FTSE 100-listed group had net debt of £4.9bn, including a drawdown of £200mln from a revolving credit facility at year-end.
Like many other companies, the catering giant may hint at some reopenings, while 55% of its operations were closed as of 23 April as sports and leisure activity was completely halted.
The market will be eager to hear how performance has been in April and potential forecasts for the remainder of the year.
Significant announcements expected for Wednesday 13 May:
Trading announcements: Aston Martin Lagonda Global Holdings PLC (LON:AML), Spirax-Sarco Engineering PLC (LON:SPX), TP ICAP PLC (LON:TCAP)
Finals: British Land Company PLC (LON:BLND)
Interims: TUI AG (LON:TUI), Compass Group PLC (LON:CPG), Sage Group PLC (LON:SGE), Marston’s PLC (LON:MARS), SSP Group plc (LON:SSP), Brewin Dolphin Holdings PLC (LON:BRW), Stock Spirit Group PLC (LON:STCK)
Economic data: UK GDP, US PPI