MONDAY DECEMBER 14
Interim results: Premaitha Health
Economics: Industrial Production (EU)
TUESDAY DECEMBER 15
The slowdown in the Chinese economy has taken its toll on microchip designer Imagination Technologies.
In September, the FTSE 250 company warned sales would fall short of expectations because it has significant exposure to a number of companies shipping into China, where mobile market is cooling. Increased fears around the health of the world’s second largest economy have prompted a revision to earnings forecasts, with analysts now expecting revenue of £185m for the year and earnings before interest and tax of £13m – down from an earlier forecasts of £20m.
While Imagination has its hopes pinned on a recovery in the second half of the year, it is not guaranteed. Shipments and royalty revenue are also expected to come under pressure after one of its large customers stopped shipping an old chip, which contained Imagination’s IP. The company’s growth has been driven by its largest customer Apple, which accounts for 34pc of revenue. However, with momentum in the smartphone market slowing, investors remain nervous ahead of tomorrow’s half-year results.
Carpetright has closed 27 stores so far this year. Photo: PA
Carpetright is set to reap the benefits of store closures when it publishes its half-year results tomorrow. Two months ago the floor retailer said it reduced its estate by 27 stores, and with potential to close a further 12 before the end of the year, it could strip out well over £10m in annual costs.
John Stevenson, of Peel Hunt, also believes sale transfers from the shuttered stores to the remaining estate could “fuel upgrades” to next year’s forecasts. Trading so far this year has also been strong, with the group indicating sales growth of 2.5pc for the first six months of the year, when it released a recent trading update. Half-year sales also climbed 2.5pc, when compared with the same period last year, putting it on course for robust half-year profits. Investors are also keen to find out whether Carpetright’s new store concept trial will be rolled out across more of its estate.
Interim results: Imagination Technologies, Carpetright
Trading update: Petrofac
Economics: Consumer Price Index (US), Consumer Price Index (UK)
WEDNESDAY DECEMBER 16
There will be few surprises when SuperGroup announces its interim results for the 26 weeks ended 24 October on Wednesday. In November, the fashion company behind the Superdry label issued a trading update which pointed to significant revenue growth in the first six months of the year, despite foreign exchange headwinds.
The FTSE 250 company said half-year revenues increased 22.4pc to £254.9m buoyed by its existing retail and wholesale divisions and a healthy new store pipeline. Gross margin is now expected to strengthen as the group continued to make “good progress”. Investors are also expected to receive an update on progress of its womenswear evolution and its recently launched premium Idris Elba collection.
Analysts at Investec believe SuperGroup remains the “classic retail roll-out story” with potential to double its store base in he UK and Europe. As it enjoys the key Christmas trading period, analysts believe January’s update will most likely be the next share price catalyst, after its November trading update revealed some key half-year figures.
Despite foreign currency headwinds, SuperGroup’s revenue has grown so far this year Photo: SuperGroup
Full-year results: Elegant Hotels
Interim results: Dixons Carphone, Tungsten Corporation, Supergroup
Economics: Balance of Trade (EU), FOMC Interest Rate (US), Unemployment Rate (UK)
THURSDAY DECEMBER 17
After a number of profit warnings, investors are hoping Premier Farnell will use Thursday’s trading update as an opportunity to discuss the progress of its operational review, announced in July. Already the group has slashed its dividend by 40pc, announced its plans to sell its Akron Brass business and cease operations, but whether further measures will be taken to rehabilitate the electronics distributor remains unknown.
Given the recent weakness in the UK and the US, the slowdown in trading from quarter two is set to continue this year, with earnings before interest tax and amortisation now forecast to be in the region of £73 to 77m. However, amid the negatives, Henry Carver, of Peel Hunt, believes there is “huge upside potential” to this stock.
If Premier Farnell can make “a good hire” for its chief executive role, following Laurence Bain’s decision to step down, and sell its Akron Brass unit to “de-risk” its balance, then it could be in a good position to compete with its rival Electrocomponents, Mr Carver said.
Trading update: Premier Farnell
Economics: ECB Report (EU), Retail Sales (UK)
FRIDAY DECEMBER 18
Interim results: Goodwin
Trading update: Trinity Mirror
Economics: Balance of Payments (EU), Current Account (EU)
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