European home improvement retailer Kingfisher will report "weather battered" annual results on Tuesday, according to analysts' forecasts.
The company's 2012/13 results are expected to reflect the impact of Britain's wettest year on record, a continued weak UK housing market, rapidly deteriorating demand in French construction and a waning Polish backdrop.
Profit before tax is pegged at £715m, down from the previous year's £797m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"Kingfisher's finals will likely confirm a weather-battered 2012/13 and a tough start to the new year (as per recent industry and competitor updates)," said Jefferies International.
"A normalisation of the trading backdrop and a more meaningful return to gross margin self-help provide long term attractions, even if the glacial run-up to spring may prove a short-term negative offset."
The broker also expects solid progress on cashflow, with a more limited capital expenditure outlay and reduced working capital headwinds in France allowing a return to a near net cash position by year-end.
Kingfisher should see earnings improve on better weather conditions in the year ahead, the analyst added.
"We therefore look for a resumption in double-digit earnings growth from '13/14," Jefferies added, issuing the company's stocks a 'buy' rating and a target price of 330p.
Shares dropped 1.88% to 282.10p at 15:52 on Monday.
Tuesday March 26th
INTERIMS
Bellway, EpiStem Holdings, Wolseley
QUARTERLY EX-DIVIDEND DATE
Dow Chemical Co, Molex Inc., Molex Inc. 'A' Shares, Yamana Gold Inc.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Confidence (US) (14:00)
Durable Goods Orders (US) (12:30)
New Homes Sales (US) (14:00)
Q3
Immofinanz AG
FINALS
Abbey Protection, Augean, Charlemagne Capital Ltd., Churchill China, Corac Group, Delcam, Faroe Petroleum, GVC Holdings, Hutchison China Meditech Ltd, JSC Halyk Bank GDR (Reg S), KBC Advanced Technologies, Kingfisher, Mission Marketing Group, office2office, Oxford Catalysts Group, Resolution Ltd., RTC Group, S & U, Synety Group, Vindon Healthcare
SPECIAL EX-DIVIDEND PAYMENT DATE
Hiscox Ltd.
AGMS
Domino's Pizza Group, Phytopharm, Pinnacle Technology Group
UK ECONOMIC ANNOUNCEMENTS
CBI Distributive Trends Surveys (11:00)
FINAL EX-DIVIDEND DATE
Hiscox Ltd., New Europe Property Investments
-
Should you sell in May this year?The market adage looks unlikely to apply in 2024, and global equities are proving resilient
-
Should you invest in UK equities?The FTSE 100 hit a record high this week, but UK equities remain unloved and undervalued compared to their global and US peers. Should you snap them up at a discount?
