Friday is shaping up to be a relatively quiet affair in the corporate diary, with final results from pub chain Wetherspoon’s one of the more prominent entries in the diary.
Other events in the calendar include Jupiter Fund Management and Man Group, as well as final results from Scancell, while investors will also be keeping an eye on the macro news for US retail sales and Michigan consumer sentiment data.
Investors ask Wetherspoons: ‘How deep is your loss?’
JD Wetherspoon PLC’s (LON:JDW) preliminary results on Friday are set to quantify the loss the publican predicted in August, but will come following an announcement on new coronavirus restrictions in England from the Prime Minister at the start of the week.
The pub chain’s business model, based on low prices and high volumes, has been under pressure during the pandemic, forcing a £15mln spend on hygiene and social distancing measures after the summer reopenings.
More recently, Wetherspoons increased prices by 2-3% in July, participated in the government’s Eat Out To Help Out scheme in August and made its own ‘Stay Out to Help Out’ to run from September to November 11.
“Given that trading hours and external vertical drinking has been curtailed, combined with accelerating supply reduction, one could make the case that JDW should consider moving some prices back up,” analysts at Peel Hunt noted.
“This would support profits, which will otherwise be assisted by plans to make up to 130 head office staff redundant.”
The focus on Friday will be on September like-for-like sales, coming after a 17% in the 44 days to August 16, alongside debt reduction since the estate reopened and margin prospects in the year ahead.
Significant announcements for Friday, October 16:
IMF meeting
Trading updates: Jupiter Fund Management PLC (LON:JUP), Man Group PLC (LON:EMG)
Finals: JD Wetherspoon PLC (LON:JDW), Scancell Holdings PLC (LON:SCLP)
Interims: SpaceandPeople PLC (LON:SAL)
AGMs: Ashmore PLC (LON:ASHM); Loungers PLC (LON:LGRS)
Economic data: US retails sales; US Michigan consumer sentiment