Companies reporting w/c 28 September

We give our thoughts on what to expect from companies announcing results week commencing 28 September 2020.


Chesnara Plc – Q2 2020 Earnings Release

The key feature of this Group is the high dividend yields that it has managed to pay over the years. Given that earlier in the year management said that business was resilient despite the crisis, investors are still pricing in the assumption that they will continue with their generous pay-out policy. However, market volatility is likely to affect the value of underlying investments, though it should still report a good solvency ratio. Investors will be expecting an update on how acquired assets are being integrated.

We currently list Chesnara as BUY.


Ferguson Plc – Q4 2020 Earnings Release

Ferguson is the world’s largest distributor of plumbing and heating products. The focusr emains on improving customer service, organic revenue growth, margin expansion, cost control and cash generation. Management are considering a US listing for the main part of the business as Ferguson is highly geared towards the US, where the majority of revenue and trading profit are generated. There has been a recent recovery in trading and the share price has recovered back to pre-Covid levels.

We currently list Ferguson as BUY.


Boohoo Group Plc – Q2 2021 Earnings Release

The market will be focusing on two main aspects for these interim results: firstly, whether the stellar 45% sales growth seen in the first quarter carried into the second quarter (the key question will be whether the allegations about wage levels at some of its UK suppliers made in the media in July have dented sales). The second area of concern follows on from that, as the findings of the independent review of the company’s supply chain are due to be published along with these results.

We currently list Boohoo as BUY.

Compass Group Plc – Q4 2020 Sales and Revenue Release; Pre-Close Trading

The market will be hoping for better news from catering group Compass as the Company has been heavily affected by the lockdowns around the world. By June, around 60% of its  operations were back up and running, so investors will be looking to see if revenues have recovered from the 44% drop seen in the third quarter. The company said its recovery was fairly slow but profit margins had improved through the quarter, so that will also be a focus for the market. Any comments on cost cutting and guidance on future dividends will also be of interest given that payments are currently suspended.

We currently list Compass Group as 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.