Travel groups and pub companies join Kingfisher and Sage in next week's lineup.
It is that time of year when some people may be considering jetting off for the winter. It is therefore quite apt that travel operators and airlines pepper next week's results schedule.
Home and away
Kingfisher (LSE: KGF), which owns B&Q, is pencilled in for third-quarter results on Thursday. The company has benefited from stay-at-home Brits who are spending more time in their pads and gardens. Additionally, the sluggish housing market has boosted demand for DIY products as homeowners spend time improving their lot rather than moving to pastures new.
At the halfway stage, Kingfisher posted a 35% jump in profits, though sales only improved 1.4%. On a like-for-like basis, revenues were down 2% though. More worrying still is the disappointing performance at the company's Screwfix division, which caters primarily for professional tradesmen. Kingfisher pointed to challenges facing the building trade that caused its sales to decline almost 6%.
It's better to travel
TUI Travel (LSE: TT) said in September that winter booking volumes were lower than a year ago. Consequently, it has cut capacity to align supply with demand. TUI, which will report full-year results on Tuesday, said early bookings for next summer are in line with this year although rising levels of unemployment could still hurt the final outcome.
Rival tour operator Thomas Cook (LSE: TCG) will also reports annual figures next Tuesday. It is reckoned that the company may use the occasion to ask shareholders for more cash. According to Morgan Stanley, the company has swung from a net cash position of £185m to £700m worth of net debt. But there may be bigger problems on the horizon. As with TUI, demand for leisure travel remains weak and there must be a concern over Thomas Cook's ability to cut capacity and margins.
Sticking with travel, British Airways (LSE: BAY) and easyJet (LSE: EZJ) are pencilled in for traffic figures on Thursday and Friday respectively. In October, BA reported a 3% drop in passenger numbers while easyJet said it carried 6% more passengers. Both airlines continue to face turbulence, with BA in talks with unions to avoid crippling industrial action and easyJet forced to apologise over inappropriate pictures in its latest in-flight magazine.
Let's have a pint
Good results recently from Mitchells & Butlers (LSE: MAB), Young & Co's Brewers (LSE: YNGA) and Fuller Smith & Turner (LSE: FSTA) bode well for Greene King (LSE: GNK) and Marston's (LSE: MARS), both of which will post figures next week. Greene King is likely to report a healthy improvement in like-for-like sales on Tuesday, driven by strong demand for food.
Marston's, which will report annual results on Thursday, has been homing in on pub grub, too. Through its "F-Plan", the pub operator aims to focus on food, families, females, and the "forty/fifty somethings". The notable shift from beer to food has helped to protect margins. Food sales at Marston's now account for almost 40% of its revenues.
Sage words
Accounting software specialist Sage (LSE: SGE) is expected to post another rise in annual profits -- its fifth in five years. The dividend may be increased too. Today, Sage is best seen as a reliable dividend payer rather than the dot-com darling it once was.
At the halfway stage, it posted a 17% jump in revenues, thanks to favourable currency movements. Pre-tax profits were up by 14% and operating cash flow came in at £187m. But the company did warn that current market conditions will continue for the rest of the financial year. Sage words -- it would take a brave person to say otherwise!
Notable results and updates
Monday: Thomas Cook and Trifast
Tuesday: Character Group, Greene King, Shaftesbury and TUI Travel
Wednesday: Brewin Dolphin and Sage
Thursday: Ashtead, British Airways, Findel, Halma, Kingfisher and Marston's
Friday: Berkeley Group, easyJet and Innovation Group
