We give our thoughts on what to expect from companies announcing results week commencing 11 January 2021.
Companies reporting w/c 11 January
Games Workshop Group Plc: Q2 2021 Earnings Release
Games Workshop reiterated back in December thCompaat the Company continues to see growth, with expected sales of £185m in the six months to the end of November (£37m higher than the previous year). Profits are also expected to be no less than £90m, compared to £59m in the previous year. From these preliminary estimates, it is clear momentum remains strong for the miniature figurine manufacturer, with recent major projects designed at expanding the Company’s offering and geographical reach continuing to drive growth. Despite restrictions hitting the retail sector hard over the last 12 months, this is one of few bright stars in the industry that has continued to show promise throughout the crisis, which is reflected in its valuation.
JD Sports Fashion Plc: December 2020 Sales and Revenue Release – Trading Statement
Shares in sports retailer JD Sports have performed relatively well in the pandemic, thanks to the fact that so far it has managed to retain a lot of sales by keeping its online channel open. However, its online services have resulted in a rise in costs, which has risen further through additional health and safety measures in response to the pandemic. Investors will be keeping an eye on that in this second half trading update. Profits more than halved in the first half, but in September the Company raised its guidance for full-year profits to £265m, and the market will be looking for any changes in that figure. More recently, the Company has continued its expansion into the US market, with the $681m acquisition of the Shoe Palace chain of stores.
Persimmon Plc: Q4 2020 Sales and Revenue Release – Trading Update
Shares in the big housebuilders have performed relatively well during the pandemic and received a boost from the announcement of a UK-EU trade deal before Christmas. Resilient house prices and strong forward order books are a positive for investors, although the pandemic has created challenges for both the construction sites and sales offices. The market is also conscious that the sector is facing changes to the Help to Buy scheme, and the stamp duty holiday is due to expire shortly. Persimmon reported a strong liquidity position in its last update so any comments on dividends over the coming year will also be a major focus for investors in this update, ahead of full-year figures in early March. Peer Taylor Wimpey is due to report the following day.
Just Eat Takeaway.com NV: Q4 2020 Sales and Revenue Release – Trading Update
The takeaway delivery group has had a strong year, which investors hope will be topped off with a further boost to revenues from lockdowns imposed across many countries at the end of the year. Investors will also be expecting the Grubhub acquisition to have boosted the Group’s market share in the US, which is underpenetrated according to some analysts. Investors will also be looking for updates as to how the Christmas and New Year period contributed to revenues, given the renewed lockdowns.
J Sainsbury Plc: Q3 2021 Sales and Revenue Release – Trading Statement
The market will primarily be looking to see how Sainsbury’s performed in the run-up to Christmas. Their market share has fallen to around 15.9% recently as competition in the sector continues to remain high. After a difficult period, the share price has been heading in the right direction and is back to the levels last seen 12 months ago. Hopes are growing regarding the latest restructuring plans and for the increased demand for online shopping.
Associated British Foods Plc: Q1 2021 Earnings Release – Trading Update
Much like in 2020, the start of the new financial year for ABF will be mixed. The Company’s food and ingredients businesses are expected to do well, given these are staples, and also the fact that prolonged lockdowns continue to drive demand for home baking products. Sugar sales should benefit from this as well as the recovery in sugar prices. However, from a retail perspective, the latest lockdown will prove to be another disaster especially given its virtually non-existent online offering.
Boohoo Group Plc: Q3 2021 Sales and Revenue Release – Trading Statement
Online fashion retailer Boohoo performed resiliently during last year’s lockdowns as its sales growth remained strong. That was especially remarkable given the criticism it faced for very serious issues in its UK supply chain. Investors will be looking to see if the sales growth continued during the pre-Christmas lockdown and whether there is any update on the ‘Agenda for Change’ the Company has embarked on in response to last year’s events.
Tesco Plc: Q3 2021 Sales and Revenue Release – Trading Update
Occupying around 27.3% of the UK market share, Tesco's update on the run-up to the festive period will grab the headlines. Areas to note will be costs associated with the virus and an expected continued improvement in online sales. The share price has recently returned to pre-pandemic levels, helped by improving dividends.
Whitbread Plc: Q3 2021 Sales and Revenue Release – Trading Update
Travel and leisure businesses remain hampered by uncertainty regarding future consumer demand. Whitbread has suffered as estimations for customer demand returning have progressively been knocked back, which was highlighted last month in its downgrade by Fitch Ratings. With the Group seemingly pressing ahead with expansion plans, investors may be slightly cautious heading into next week's update as to how management perceive the outlook for the business.
The Gym Group Plc: Q4 2020 Sales and Revenue Release – Pre-Close Trading Update
Over the lockdown periods, gyms have repeatedly fallen under a spotlight of media attention. Playing such an important role in both the physical and mental health of our society, it was no surprise to see gym-goers return in droves once fitness centres were re-opened. Despite this, the third national lockdown announced this week is sure to send management back to the drawing board in an attempt to refigure how to navigate the business through these persistently difficult times. Any updates regarding potential loan agreements or funding support will be of particular interest to investors.
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