Companies reporting w/c 20 July

We give our thoughts on what to expect from companies announcing results week commencing 13 July 2020.


Intermediate Capital Group Plc (Q1 2021 Sales and Revenue Release - Trading Statement)

They are a global alternative asset management group, which entered the FTSE 100 in March. Since the start of the pandemic, investment and realisation activity has slowed significantly. Management highlighted the business remained resilient with good visibility on future management fees due to the long-term nature of their funds. Asset management groups are vulnerable in times of market stress and although recovering the share price is likely to remain volatile.

We currently list Intermediate Capital Group as a HOLD


Melrose Industries Plc (Q1 2021 Sales and Revenue Release - Trading Update)

The last update in May stated sales had fallen by 20% over the first four months and that the Group will be making £200mn of cost savings for the second quarter. The focus will be on managing the challenging situation created by the virus, especially for its aerospace and automotive divisions. The share price has remained very volatile and the highly regarded Management is being tested like never before.

We currently list Melrose Industries as a BUY

St. Modwen Properties Plc (Q2 2020 Earnings Release)

These are interesting times for housebuilders and property developers given that many construction sites had to close down due to the pandemic and the Government has now announced a rise in the stamp duty threshold to £500,000. In June St Modwen said the virus has not affected it as much as it had expected and forecast earnings would be lower in the first half by around £4 to £5mn. Management also reassured the market that rental collection levels had remained high at that point. Investors will be focusing very much on that number again in these results.

We currently list St. Modwen Properties as a BUY


RELX Plc (Q2 2020 Earnings Release)

The Group has some defensive attractions and the shares have recovered close to pre-crisis levels. Investors will be expecting an update on its exhibition business which has been hit hard by the Covid-19 crisis; however its other three divisions may have fared better. The Group’s priority is the organic development of increasingly sophisticated information based analytics and decision tools for its customers.

We currently list RELX as a BUY

The Sage Group Plc (Q3 2020 Sales and Revenue Release - Trading Update)

This is a supplier of business software to small to medium sized enterprises around the world so and it will be interesting to see how the Covid crisis has been hitting the subscription rates from companies of various sizes and sectors. Subscription decisions may have been deferred by some businesses however, the transition of customers to a subscription model may have been given a spur by the crisis. Investors will be hoping for guidance for the rest of the year which was withdrawn at the last update as the outbreak spread.

We currently list The Sage Group Plc as a BUY

Tate & Lyle Plc (Q1 2021 Sales and Revenue Release - Trading Statement)

The Group has three main aims; to sharpen focus on customers, accelerate portfolio development and simplify the business and deliver productivity improvements. It will focus on ingredients for drinks, dairy and soups, sauces and dressings. North America is the biggest market. Investors will be looking for further news on the effects of the virus although Management is unlikely to be able to give guidance for the year ahead.

We currently list Tate & Lyle as a BUY

Croda International Plc (Q2 2020 Earnings Release)

Croda's broad range of products has definitely helped the diversified chemicals business display some defensive qualities during the pandemic. The Group benefits from a strong balance sheet which has allowed acquisitions to continue moving forward with their most recent being Avanti. Investors will be looking for further clarity from Management on the Group's outlook and whether there may be more acquisitions on the horizon. It will also be interesting to see any update from the Group's personal segment which is likely to have grown in popularity with more consumers remaining at home and is now their largest segment.

We currently list Croda International as a HOLD

Unilever Plc (Q2 2020 Earnings Release)

Unilever’s defensive appeal has served it well in the midst of all the current economic uncertainty. In April the company said it had seen strong demand for cleaning products in the first quarter and decided to maintain its dividend. Sales did not grow overall in the first three months due to weakness in some key emerging markets such as China and India. Investors will be looking to see if there has been any improvement there and whether the company is willing to give any full-year guidance.

We currently list Unilever as a BUY


Vodafone Group Plc (Q1 2021 Earnings Release)

As a mobile telecoms provider there is hope this is a business that can show to be resilient in these times as more people work from home needing improved subscription call and data packages from both individuals and business customers. However, fewer people travelling will hit income from roaming charges and investors will keep a close eye on the debt which is high and possibly facing ratings downgrades.

We currently list Vodafone as a BUY

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.

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