RPC (Q2 results)

These are not easy times for companies involved in plastic packaging with the negative commentary across the media about environmental pollution. This second quarter trading update is rather overshadowed by the ongoing discussions with private equity groups Apollo Global Management and Bain Capital about a possible takeover bid. That was announced in September and the shares rose 17% in response but there has been no news of any progress since. In terms of trading, investors will be hoping for better news as the first quarter was slightly disappointing with revenues up just 6%. The company said differing investor views on its debt levels were constraining its ability to make further acquisitions.

We currently list RPC as a BUY

Marston's (Q4 trading update)

Pub and brewing group Marston’s defied expectations with a good level of trading in the third quarter. The Taverns side of the business, which are pubs focused mainly on beverages, benefited from the World Cup and hot summer weather. In this update the market will be looking especially at the destination and premium pubs, which concentrate mostly on food, as it saw sales fall in the previous quarter. Accommodation has also been a growing part of the offer from Marston’s so progress with that will be of interest. Rival Mitchells & Butlers reported improved sales last week which may bode well for the wider sector.

We currently list Marston's as a BUY

Hargreaves Lansdown (interim management statement)

The market leader has been consistently reporting solid results, leading to the share price being in touching distance of an all-time high. Despite only being an interim management statement, investors will be keen to hear an update on recent trading as well as the group’s outlook for the markets and possible consequences of Brexit. Other areas to concentrate on will be any information regarding customer numbers, assets under management and operating costs, which have been rising.

We currently list Hargreaves Lansdown as a HOLD

Mondi (Q3 trading update)

There has been good demand for the company’s products, especially for packaging. It has a wide geographic spread and product diversification. The seemingly never ending demand for online shopping has greatly benefited the sector. Areas for investors to concentrate on will be costs, margins and potential for further price increases. The shares have outperformed year to date and investors will therefore be expecting a positive update.

We currently list Mondi as a BUY

Economic Diary

Announcements for the w/c 8 October 2018:

10 Oct 18, UK Construction, Industrial and Manufacturing output for August

During July, the construction sector had its most active month since December 2017 possibly helped along by the good weather. All the while Industrial and Manufacturing production was a little tamer, but still showed growth nonetheless. If the August PMI figures are anything to go by then we could see a modest drop in the production growth figures across the sectors. However, none of these should be enough to materially offset the third quarter GDP numbers.

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