Companies reporting w/c 2 December

We give our thoughts on what to expect from companies announcing results week commencing 2 December 2019.


Cineworld Group Plc (Q3 2019 Sales and Revenue Release - Trading Update)

The market will be hoping for good news from the cinema group as it’s been a fairly difficult year so far, which is reflected in the poor performance of its shares. In August the company reported a 14% decline in its first half admissions but said it was expecting a much better second half of the year, thanks to a strong slate of films, and said it still expected to hit its full year targets. That includes Frozen 2 which has just broken box office records for the first three days of its release. Given the large exposure the company now has in the US, the market will be focusing on how that region is performing.

We currently list Cineworld as a BUY

Ferguson Plc (Q1 2020 Sales and Revenue Release - Interims)

The share price has powered ahead year to date, hitting another high this week. Ferguson is highly geared to the US, where the majority of revenue and trading profit is generated. This led to an announcement in September that the group will demerge its UK operations. Management expect modest growth over the near term, but still forecast that the group will continue to outperform.

We currently list Ferguson as a HOLD


DS Smith (Interims)

There shouldn’t be too many surprises in the interim results for investors given that the company said previously trading had remained in line with expectations. Of more interest will be any update on what the company plans to do with the £400mn it is expecting to receive for the sale of its plastics division. The proceeds are expected to arrive towards the end of the calendar year and will be useful in reducing gearing. The company made some cautious comments on the German market earlier in the year so any update on that will also be of interest. New business wins in other markets including the US are expected to provide a boost in the second half, as are the benefits of the acquisition of the Spanish packaging group Europac.

We currently list DS Smith as a BUY


Berkeley Group Holdings Plc (Q2 2020 Earnings Release)

The housebuilding sector has generally proven to be more resilient in recent times than many expected. Berkeley’s particular focus on London and the South East has not helped it thanks to Brexit uncertainty, but recent data suggests house prices in the capital are bouncing back. In September the company reassured the market that trading in the first quarter had remained steady although it also made some cautious comments about the potential for ‘short-term market dislocations’. The market will be focusing on profit expectations for the full year as the management said previously 2019/20 profits were likely to be lower by roughly a third, although it continues to target a total of £3.3bn in profit by 2025.

We currently list Berkeley Group as a HOLD

All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to To understand how our Investment research team arrive at their views please read our Investment Research Policy.