The week ahead in business and finance

Monday June 5

AGM:Frontera Resources, TBC Bank Group, RedstoneConnect

Economics: Services PMI (UK), final services PMI (US), factory orders m/m (US), labour market conditions index m/m (US), ISM non-manufacturing PMI (US), final services PMI (EU), final services PMI (GER), Sentix investor confidence (EU)

 Tuesday June 6

Online electricals retailer AO World is forecast to post full-year results in-line with expectations. Revenues are expected to rise 17pc year-on-year to around £700m, while group cash is anticipated to be at least £27m as at March 31. The full-year results come a week after the retailer was given the boot from the mid-cap index following the latest FTSE quarterly reshuffle.

Shares have plunged by more than 22pc since the group tightened its earnings before interest, tax, depreciation and amortisation guidance range to £-2.4-£0m. Investors will focus their attention on the outlook for the year ahead after the board said in March that it was “cautious” given the uncertain UK economic outlook, currency impacts on supplier pricing and the possible effect on consumer demand.

Full-year results:Carclo, GB Group, FreeAgent Holdings, BP Marsh & Partners, AO World, Acal, WYG, KCOM Group

Interim results: Oxford Metrics, Gooch & Housego, IDOX

Trading update: Joules Group, International Consolidated Airlines Group

AGM: Gem Diamonds, Realm Therapeutics, Forbidden Technologies

Economics: NFIB small business index (US), IBD/TIPP economic optimism (US), retail sales m/m (EU)

Wednesday June 7

Expect plastic products design and engineering group RPC to deliver full-year revenues significantly ahead of last year thanks to a raft of acquisitions. In its full-year closing statement, the mid-cap firm said overall performance had been “encouraging”, estimating full-year profits would also come in ahead of management expectations. However, worries about the group’s aggressive M&A strategy have prompted stock market jitters in recent months. RPC has announced ten deals over the last year sparking concerns over organic growth.

Adrian Kearsey, of Panmure Gordon, said worries about organic growth partly stem from “indigestion caused by the Letica acquisition” and bearish commentary that emerged after the deal. Investors will also focus their attention on cash conversion and financial disclosure, Mr Kearsey said.

Full-year results:Tricorn Group, RPC Group, Workspace Group, Ramsdens Holdings, Grafenia

Trading update: St Modwen Properties

AGM: Jackpotjoy, WPP Group, Audioboom Group, Hurricane Energy

Economics: BRC Shop Price index y/y (UK), Halifax HPI m/m (UK), NIESR GDP estimate (UK), 30-y bond auction (US), 10-y bond auction (US), consumer credit m/m (US), factory orders m/m (GER), revised GDP q/q (EU)

 Thursday June 8

Momentum remains strong for fast-fashion company Boohoo.com, after it forecast sales growth of 50pc this year. Less than two months ago, the retailer reported pre-tax profits of £30.9m in the 12 months to February, while revenues rose 51pc to £294.6m. In the first quarter of the new financial year, Boohoo.com is expected to report sales growth of 35pc as it enjoys strong international growth, particularly from the US. Investors will also be keen to see how the acquisitions of the PrettyLittleThing and Nasty Gal brands have impacted revenues.

Analyst John Stevenson, of Peel Hunt, thinks management will point to “tough comparatives” in the second half of the year during the trading update  in an effort to keep numbers in check. “This means upgrade potential for this week may prove more muted at this early stage,” he added.

Full-year results: FlyBe, CMC Markets, Volex Group, Auto Trader Group, First Property Group

Trading update:Boohoo.com

Economics: General Election (UK), unemployment claims (US), JOLTS job openings (US), Federal budget balance (US), industrial production m/m (GER), minimum bid rate (EU), ECB press conference (EU)

 Friday June 9

Brewer and pub company Fuller Smith & Turner will deliver a strong set of full-year results, as it continues to extend its premium product range. The London-listed group enjoyed robust trading in the 43 weeks to January 21, reporting sales growth of 3.7pc in its managed pubs and hotels unit. However, like-for-like profits in Fuller’s tenanted inns division fell 1pc over the same period. The company is also facing increasing cost pressures from a steep rise in business rates, an increase in the national living wage and the introduction of the apprenticeship levy, which came into effect on April 6.

Douglas Jack, of Peel Hunt thinks managed pubs, restaurants and hotels, which now generate over 60pc of group profit, are Fuller’s “greatest source of growth and potential upgrades”. “We believe the upside risk rests in the assumption of 2pc like-for-like sales in 2018,” he added.  

Full-year results: Fuller Smith & Turner

AGM: Telefonica SA, Vertu Capital Limited, TomCo Energy, Deltex Medical Group

Economics: RICS house price balance (UK), industrial production m/m (UK), goods trade balance (UK), construction output m/m (UK), manufacturing production m/m (UK), consumer inflation expectations (UK), final wholesale inventories m/m (US), trade balance (GER), final CPI m/m (GER)

Source: Here