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.

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.

"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.

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

Recommended

Share tips of the week – 19 August
Share tips

Share tips of the week – 19 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
19 Aug 2022
How to invest in smart factories as the “fourth industrial revolution” arrives
Share tips

How to invest in smart factories as the “fourth industrial revolution” arrives

Exciting new technologies and trends are coming together to change the face of manufacturing. Matthew Partridge looks at the companies that will drive…
18 Aug 2022
How to invest today? Look to the past, not the future
Investment strategy

How to invest today? Look to the past, not the future

The past few years have seen so many changes to our way of life that many people said we had entered a “new normal”. But as it turns out, the new norm…
18 Aug 2022
A new legal headache for Haleon
Stocks and shares

A new legal headache for Haleon

Haleon, GSK’s former consumer-products arm, spun off last month, has made a dismal debut on the stockmarket.
17 Aug 2022

Most Popular

How to protect your wealth as inflation hits new record highs
Investment strategy

How to protect your wealth as inflation hits new record highs

UK inflation has hit a new record high of 10.1%. It's going to hurt, says Dominic Frisby. Here's how you can protect your wealth.
17 Aug 2022
How to cut your energy bill
Personal finance

How to cut your energy bill

The energy-price cap will almost double in the autumn. What does this mean for your money, and how can you alleviate the squeeze? Ruth Jackson-Kirby h…
17 Aug 2022
Are GSK’s legal troubles a threat to the firm’s survival?
Biotech stocks

Are GSK’s legal troubles a threat to the firm’s survival?

Pharmaceutical giant GlaxoSmithKline is facing legal action over heartburn drug Zantac that has seen billions wiped off its market value. Rupert Hargr…
16 Aug 2022