The coming week will see a tapering off in big hitter results that have characterised the previous few weeks, however, there will still be updates from major firms in the leisure, travel, insurance and retail sectors.
Meanwhile, macro news will also be keeping investors occupied with UK unemployment data due in addition to UK GDP and inflation, jobless claims and retail sales data from the US.
InterContinental Hotels checks in with results
Holiday Inn owner InterContinental Hotels Group PLC (LON:IHG) will report its interim results on Tuesday, providing investors with their first look at the company’s finances during the pandemic lockdown.
Revenues per available room (RevPAR) is expected to drop by more than half for the period as the lockdown battered the group’s second-quarter numbers, which saw RevPAR plunge 75%.
With the hit to the company’s profits likely to be big, cost-saving measures are likely to be at the front of investors minds, although the fact that the company’s hotels are mainly owned by franchisees could soften the blow provided they can pay their fees.
The company has been offering franchisees fee relief and flexible payments to help keep them afloat in this regard, however, this could have consequences for its bank balance.
Prudential the dividend keeper
Prudential PLC (LON:PRU) is releasing its interims on Tuesday, with analysts at UBS estimating an 11% drop in operating profit to US$2.3bn due to a lower performance in the US, partially offset by growth in Asia.
The life insurance and financial services company is also expected to declare an interim dividend of 12.3 cents per share.
Investors are going to focus on the US business and a potential minority spin-off in the second half, alongside Asian sales trends given the coronavirus (COVID-19) lockdown disruption and political volatility in Hong Kong.
Admiral results come into port
Wednesday will bring half-year results from motor insurer and Confused.com owner Admiral Group PLC (LON:ADM), which has performed relatively solidly during the pandemic disruption by projecting what some would consider an image of financial strength by offering customer rebates due to less driving during lockdown as well as price cuts for those struggling with monthly payments and keeping all of its staff on full pay without taking any government support.
Investors will likely be keeping an eye on pricing, costs and cash management measures in the results, as well as any potential updates on the company’s usual special dividend, which is suspended after pressure from the Prudential Regulation Authority rather than due to any issues with its cash balance.
Brexit may also be a point of interest given Admiral’s operations in Spain, Italy and France which could be affected by the separation of regulatory regimes.
TUI to land quarterly results
The travel company is going to release some numbers on what has been a particularly unpredictable period in the sector, subject to the volatility of travel restrictions.
Investors are hoping to hear more on the damage made by the UK government’s renewed quarantine measures on travellers arriving from Spain and how other trips and forward bookings are doing.
The firm may also update on plans to axe 8,000 jobs internationally and close 166 high street stores in the UK and Republic of Ireland to cut costs.
Frasers to release some pandemic numbers
Frasers Group PLC (LON:FRAS) is releasing its finals on Thursday, where investors should get a clearer picture on how trading has been since the reopening of shops and how the previous closures hit its accounts.
Analysts at Hargreaves Lansdown expect online sales of sports equipment and workout gear to have aided dismal trading, however, they think it is hard to quantify.
But the retailer’s financial year ends in April, including only just over a month of lockdown, so all eyes will be on the outlook statement.
The former Sports Direct chain wants to turn itself into “the Selfridges of Sport”, a plan that may have been hindered by lower spending during the pandemic.
“The strategy’s behind the eclectic mix of high street acquisitions in recent years. And at the end of June, the group acquired a 6.1% stake in Hugo Boss,” analyst Sophie Lund-Yates commented.
“We’d like to hear more behind the rationale for this deal, and how a growing relationship with this higher-end name fits into the story.”
National Express to report on recovery journey
The FTSE 250-listed transport group announced then it was going to restart some services in the UK from July, as it had already resumed routes in other countries.
Investors will want to hear how that has continued and what’s the progress in negotiations to restart North American school buses as the new academic year is about to start.
Revenue tanked 50% in April, so the market is expecting to see how that has recovered, and how the £1.5bn cash position posted in May is doing.
GVC wary of tax probe as it delivers interims
Ladbrokes owner GVC Holdings PLC (LON:GVC) will deliver its interim results on Thursday as well, with the gambling group looking to contain any fallout from a newly expanded HMRC probe into its former Turkish business.
In an update in mid-July, the company reported a steep fall in revenue from its betting shops which were forced to close during the lockdown, however, a jump in online gaming revenues had helped to plug the gap. As a result of lockdown easing, investors may be hoping the company’s outlook is more positive and it can retain some of the higher online numbers moving forward.
The company may also find itself benefitting from the return of live sport and associated match betting, while shareholders will also eye an update from newly minted CEO and former COO Shay Segev, who took the helm after the abrupt departure of Kenny Alexander.
The first big event in the macro calendar in the coming week will be on Tuesday with the UK’s latest batch of unemployment figures for the three months to June, covering the worst period of the pandemic lockdown.
While the government's furlough scheme has helped to prevent a massive wave of immediate job losses, with unemployment only at 3.9% in May and near to the modern-day low of 3.4% in 1973, a litany of large firms have recently announced thousands of job cuts which could push the figure higher as they begin to take effect.
There are also concerns that unemployment may simply be a ticking time bomb as the furlough scheme begins to wind down before its planned end in October, meaning the 9mln workers on the scheme may simply find themselves moved off into the dole queue.
Wednesday will bring UK GDP figures for June, providing more insight into the British economy’s attempted recovery from the lockdown, followed by inflation data for the US.
Thursday will bring the latest weekly US initial jobless claims data as the American economy suffers renewed volatility from a second wave of coronavirus cases.
The US performance will also be in focus for Friday’s retail sales figures as multiple states begin to order business to close their doors again to contain the spread of the virus.
Significant announcements expected for week ending August 14:
Monday August 10:
Tuesday August 11:
Finals: Versarien PLC (LON:VRS),
Interims: InterContinental Hotels Group PLC (LON:IHG), Prudential PLC (LON:PRU), Derwent London PLC (LON:DLN), Domino’s Pizza Group PLC (LON:DOM), Plus500 Ltd (LON:PLUS), Petrofac Ltd (LON:PFC), Quilter PLC (LON:QLT), Amino Technologies PLC (LON:AMO), JKX Oil & Gas PLC (LON:JKX), SDL Plc (LON:SDL), Zotefoams PLC (LON:ZTF), Gamesys Group PLC (LON:GYS)
Economic data: UK unemployment
Wednesday August 12:
Interims: Admiral Group PLC (LON:ADM), Just Eat Takeaway.com PLC (LON:JET), Avast PLC (LON:AVST), Balfour Beatty plc (LON:BBY), Capital & Counties Properties PLC (LON:CAPC), CLS Holdings PLC (LON:CLI), Empresaria Group plc (LON:EMR), Hostelworld Group PLC (LON:HSW), Impact Healthcare REIT plc (LON:IHR), Spirax-Sarco Engineering PLC (LON:SPX), Lookers PLC (LON:LOOK)
Economic data: UK GDP, US inflation
Thursday August 13:
Interims: GVC Holdings PLC (LON:GVC), National Express Group PLC (LON:NEX), Coats Group PLC (LON:COA), Anexo Group PLC (LON:ANX), Empiric Student Property PLC (LON:ESP), Helios Towers PLC (LON:HTWS), Just Group PLC (LON:JUST)
FTSE 100 ex-dividends to knock 20.86 points off the index: Ashtead Group PLC (LON:AHT), Pearson PLC (LON:PSON), Smurfit Kappa Group plc (LON:SKG), GlaxoSmithKline PLC (LON:GSK), Royal Dutch Shell PLC (LON:RDSB), AstraZeneca PLC (LON:AZN), BP PLC (LON:BP.), Diageo PLC (LON:DGE), Legal & General Group PLC (LON:LGEN), SEGRO PLC (LON:SGRO)
Economic data: US jobless claims
Friday August 14:
Economic data: US retail sales