Advertisement

Thursday preview: SABMiller and Mothercare

Markets are expected to be pretty subdued on Thursday with Wall Street closed for Thanksgiving; here in the UK however, investors will be looking out for first-half results from beverages giant SABMiller and High Street retailer Mothercare.

Markets are expected to be pretty subdued on Thursday with Wall Street closed for Thanksgiving; here in the UK however, investors will be looking out for first-half results from beverages giant SABMiller and High Street retailer Mothercare.

As for SABMiller, the company saw good growth in lager volumes shipped across most regions in the first half of its financial year. On an organic basis, lager volumes for the six months to the end of September were 4% ahead of the prior year. Soft drinks volumes were 6% higher year-on-year on an organic basis.

Advertisement - Article continues below

Charles Stanley is forecasting revenue of $16,940m, leading to profit before tax of $2,575m, but warns there is likely to be material variation in trading conditions by regions.

SABMiller "remains well placed to benefit from growth in urban middle class populations in emerging markets, which aspire to drink branded beer and can increasingly afford to do so," notes Charles Stanley's Sam Hart.

Advertisement
Advertisement - Article continues below

"Trading conditions in developed markets are likely to remain more challenging, but significant potential remains to improve operational efficiency in these markets and they will continue to be an important source of cash to invest in faster growth markets," Hart added.

Meanwhile, the market is looking for baby and mummy products retailer Mothercare to follow up on its better-than-expected second-quarter trading statement last month.

The firm said that like-for-like sales in the UK returned to growth (+0.3%) in the 13 weeks to October 13th, from a sharp decline (-6.7%) in the first quarter. The shares have jumped an impressive 34% since the trading update.

Advertisement - Article continues below

However, analyst Kate Calvert from Seymour Pierce said on Monday to expect a "reality check" when the first-figures come out. "We expect Mothercare for the 28 weeks to October 13th to report a H1 loss of £2m at the pre-tax level versus FY11 loss of £4.4m," she said.

Calvert said that she expects the gross margin is expected to be hit by "promotional activity to clear stock and reinvestment into entry level price repositioning."

INTERIMS

Dart Group, Mothercare, SABMiller, Sepura, Young & Co's Brewery 'A' Shares

INTERIM DIVIDEND PAYMENT DATE

Goals Soccer Centres, Hansteen Holdings, Smart Metering Systems

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Consumer Confidence Indicator (EU) (10:00)

Q3

ADC African Development Corporation GmbH, Avengardco Investments Public Ltd GDR, Bridge Energy Asa, Wentworth Resources Ltd (CDI)

GMS

Impellam Group

FINALS

Daily Mail and General Trust A (Non.V), Grainger, Phytopharm

ANNUAL REPORT

Firestone Diamonds

AGMS

Close Brothers Group

UK ECONOMIC ANNOUNCEMENTS

CBI Industrial Trends Surveys (11:00)

FINAL DIVIDEND PAYMENT DATE

Thorpe (F.W.)

BC

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Gold hits the big $2,000 level – are Aim miners about to play catch up?
Gold

Gold hits the big $2,000 level – are Aim miners about to play catch up?

With the price of gold shooting through $2,000 an ounce, the yellow metal looks unstoppable. Things are so bullish, even Aim-listed junior gold miners…
5 Aug 2020
Don’t despair on dividends – these companies could be set to bring them back
Income investing

Don’t despair on dividends – these companies could be set to bring them back

The value of dividends paid out by UK stocks has plummeted this year as companies “rebase” their payment policies. But things could soon start to look…
6 Aug 2020
Too embarrassed to ask: what is “real return”?
Too embarrassed to ask

Too embarrassed to ask: what is “real return”?

MoneyWeek's latest "too embarrassed to ask” video explains what a real return is and why it's so important for investors.
5 Aug 2020