Informa PLC (LSE:INF), the FTSE 100-listed events and exhibitions organiser, which has seen its shares lose over 17% since Russia invaded Ukraine, reports results on Tuesday.
Investors expect fewer people to travel to trade shows in the coming months, but the company has been adjusting to an unusual market since the pandemic broke out.
Back in November, the company said it expects revenue of around £1.8bn and adjusted operating profit of £375mln for the past “transitional year”, just before announcing a new three-year plan to “create a more focused, higher growth business”.
The aim is to return revenues above 2019 levels (pro format, allowing for divestments) by the end of 2024, whilst returning “significant capital” to shareholders in 2022.
Analysts at UBS think revenues for 2021 will be at the bottom end of the guidance range, given the delay to China’s re-opening.
Guidance for the new financial year was also given for underlying earnings, excluding Informa Intelligence, of £420-440mln, but recent events in Ukraine and China could put an extra squeeze on the outlook.
Top things to look out for, according to UBS, will management’s messages on cost flexibility if global macroeconomics deteriorates; commitment to capital returns; current trading, especially Asia.
Elsewhere, half-year results from Ferguson PLC (LSE:FERG) should reflect a buoyant US housing market, but commodities-induced price rises could clip the group’s wings this year.
Home ownership accelerated last year alongside house prices as US buyers spent extra income and moved out of cities.
But Ferguson’s shares are down more than 17% this year amid fears rising prices will pull consumers out of the housing market.
UBS projects sales in the first half of 2021 to rise 24.7% to US$13.05bn, driving profit before tax of US$1.26bn and diluted earnings per share of
For the full 2022 financial year, UBS predicts EBITDA of US$2.49bn, with dampened 6.3% organic growth in the second half of the year.
For more of a UK focus, DFS Furniture PLC (LSE:DFS) also has interim results already released a trading update on its first-half performance earlier this year, with gross sales up 10%, the profit line will be the key on Tuesday, with the market expecting a little below management’s guidance of £85mln.
Also, we might get an impression of “how first half performance might shape the year”, said UBS
“Investors are cautious on home improvement names, as concerns around a pullback in discretionary spend rise with rising living costs for the UK consumer,” the analysts added.
Despite a strong run over Christmas, DFS did not change its outlook for the year, but UBS noted that the company is holding a capital markets day that “could provide a stimulus”.
Major announcements expected on Tuesday 15 March 2022
Finals: Informa PLC (LSE:INF), Ultra Electronic Holdings, TP ICAP Group, Genel Energy PLC (LSE:GENL, OTC:GEGYY) (Genel Energy PLC (LSE:GENL, OTC:GEGYY), Genel Energy PLC (LSE:GENL, OTC:GEGYY)), Aptitude Software Group PLC, Genuit Group PLC (LSE:GEN) (Genuit Group PLC (LSE:GEN)), Petrofac, Gresham House, Old Mutual Ltd, Smart Metering Systems PLC (AIM:SMS) (Smart Metering Systems PLC (AIM:SMS)), TI Fluid Systems PLC (LSE:TIFS) (TI Fluid Systems PLC (LSE:TIFS)), Tissue Regenix Group PLC (AIM:TRX, OTC:TSSNF) (Tissue Regenix Group PLC (AIM:TRX, OTC:TSSNF), Tissue Regenix Group PLC (AIM:TRX, OTC:TSSNF))
Interims: DFS Furniture PLC (LSE:DFS), Virgin Wines UK PLC (AIM:VINO) (Virgin Wines UK PLC (AIM:VINO)), Ferguson PLC (LSE:FERG) (Ferguson PLC (LSE:FERG)), Litigation Capital Management Ltd (AIM:LIT) (Litigation Capital Management Ltd (AIM:LIT)), Close Brothers Group PLC (LSE:CBG) (Close Brothers Group PLC (LSE:CBG))
AGMs: BlackRock Energy PLC
Economic announcements: Producer Price Index (US)