The mid-point of the week and the final day of June will see an update from outsourcing giant SERCO as well as results from electronics retailer Dixons Carphone. Also in the company diary are transport firm Stagecoach as well as consumer lender Non-Standard Finance.
There will also be some interest in the macro calendar, with the latest US ADP jobs figures likely to be watched ahead of the critical non-farm payroll report on Friday.
Serco sources update
As the old Douglas Adams joke has it, Serco PLC (LON:SRP) – loathe them or ignore them, you can’t like them.
The controversial outsourcing firm, which is heavily involved in the UK’s ramshackle test and trace programme, issues a pre-close period trading update on Wednesday having increased full-year guidance a couple of weeks back
“All of our four divisions have traded in-line or ahead of their budgets in the first five months of the year. In the UK in particular, volumes on both our Testing and Tracing contracts have continued to be strong and we now think it likely that demand for these services will continue for longer in the second half than we previously anticipated,” said Rupert Soames, the chief executive of Serco.
The group expects underlying trading profit in 2021 will be around £200mln, some £15mln higher than previous guidance.
Dixons hopes to keep online operation steaming ahead
Dixons Carphone PLC (LON:DC.), soon to be renamed Currys PLC, will deliver full-year results on Wednesday that are likely to see the success of the firm’s accelerated pivot to digital thrown into sharp relief.
With the pandemic sending the requirement for an effective online operation to the top of the agenda, the company has doubled down on its digital proposition and investors will be hoping the momentum has continued now lockdown restrictions are easing.
One of the key areas of interest will be the firm’s operating margins, which around 2% are already pretty thin so there will be little room to manoeuvre. The company has also forecast a profit for the year of £151mln and net cash of £150mln, so any numbers will be compared against these.
The outlook statement will be similarly crucial, particularly around the group’s restructuring efforts and plans to close or consolidate stores.
Significant announcements for Wednesday June 30:
Trading announcements: SERCO Group PLC (LON:SRP)
Finals: Stagecoach Group PLC (LON:SGC), Dixons Carphone PLC (LON:DC.), Aminex PLC (LON:AEX), Civitas Social Housing PLC (LON:CSH), Non-Standard Finance PLC (LON:NSF), OptiBiotix Health PLC (LON:OPTI), PCF Group PLC (LON:PCF), Studio Retail Group PLC (LON:STU)
Interims: Harworth Group PLC (LON:HWG), Velocity Composites PLC (LON:VEL)
Economic data: UK GDP, US ADP employment, US Chicago PMI