The sofa seller benefitted from consumers spending more on their homes compared to other sectors, alongside with pent-up demand following lockdown, although many people may still be postponing big purchases going forward.
As of August, year-on-year order intake growth was equivalent to £70mln of revenues, which added to its previously announced opening order book that will generate a further revenue benefit of £100mln.
The market will be focused on the outlook for the 2021 financial year, with UBS forecasting a 28% jump to £929mln in revenue for profit before tax of £87mln.
“Management may give more information on their post COVID-19 strategy (in line with other recent company reporting) and may give additional details on the longer term strategy given the recent sale of Sofa Workshop,” analysts noted.
Revenues are expected to remain resilient as they come from supplying water to households, however there has been pressure on household finances during the crisis. Companies have been well aware of a potential struggle with bills across the country, even among business customers.
Dividends for London's listed water firms have been curtailed by regulator Ofwat's plans for stricter financing requirements but investors in United Utilities are wondering whether they will see any payout this year, with the group's plans to grow the distribution for the next five years in line with inflation hit by a pause during the pandemic.
Thursday September 24
Interims: Cineworld Group PLC (LON:CINE), SIG PLC (LON:SHI), Pendragon PLC (LON:PDG), Faron Pharmaceuticals Oy (LON:FARN), Biome Technologies plc (LON:BIOM), Ebiquity PLC (LON:EBQ), GYG PLC (LON:GYG), Portmerion Group PLC (LON:PMP), RTW Venture Fund Limited (LON:RTW)
Trading announcements: United Utilities Group PLC (LON:UU.)
Economic data: US jobless claims, ECB General Council meeting