2018 Earnings forecasts stable over the summer
Only marginal declines in EMs suggest that fears of an imminent crisis are overblown
There is a relatively strong correlation between the direction of earnings forecasts and the short-term relative performance of equity markets. Over the last 12m, US markets have outperformed peers as Trump’s corporate tax reductions and fiscal stimulus have provided a tailwind for US earnings. In the UK, although weighted earnings forecasts have risen, UK stocks have trailed behind, impacted in our view by the negative domestic sentiment in terms of Brexit. Similarly in continental Europe, market sentiment has been impacted by international and domestic political events. Intriguingly, the median emerging market forecast has only fallen by 2% since the Q1 peak, similar to the UK and Europe, suggesting fears of an imminent crisis are not at present feeding through to the corporate sector.
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Dairy Crest Group: trading update announces that interim profits and revenues ahead of last year
Group expectations for full year are unchanged
Dairy Crest Group has issued a trading update saying that it expects its interim profits and revenues to be ahead of the same period of last year. It says the results have been driven by “strong performances” from its two largest brands, Cathedral City cheese and Clover margarine.
Read more...Sirius Minerals (SXX): announces take or pay agreement with distributor Cibra Group Companies
Sirus to buy 30% equity interest in Cibra Group Companies
Sirius Minerals, the group developing a major polyhailite mine in North Yorkshire, has announced a “take-or-pay” agreement with fertiliser distributor Cibra Group Companies for the supply and resale of the mineral into Brazil and other South American countries.
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Finsbury Foods (FIF): full-year results show positive trading performance
Like-for-like sales up 2.4%
After £13m of “significant and non-recurring items”, a positive trading performance with like-for-like sales up 2.4% at £290.2m has been turned into a reported pre-tax number of £4.5m, a 65% year-on-year decline.
Read more...Shore Capital Group (SGR); 1H results: revenue up 6.5% to £21.6m; interim dividend at 5pps
Capital Markets division revenue declined 8.5%
SGR reported 1H18 results ended 30 June 2018. Revenue grew 6.5% to £21.6m (2017: £20.3m) while earnings per share (EPS) increased 10.4% to 7.4p (2017: 6.7p). The profit before tax was £2.6m (2017: £2.5m).
Read more...Standard Life Investment Property Income Trust (SLI); 1H18 NAV total return of 5.6%
Stock flat at 93.1p at 8:05
For the six months ended 30 June 2018, SLI’s share price total return of 2.4% compared favourably to the total return on the FTSE All-Share REIT Index of 1.3% and the FTSE All-Share Index of 1.7%.
Read more...Co-operative Group (87GO): reported 10% increase in first-half sales to £5bn,
like-for-like sales up 4.4%,
The Co-operative Group reported a 10% increase in first-half sales to £5bn, boosted by a strong food sales performance and its acquisition of Nisa, a grocery wholesaler. Food retail like-for-like sales were up 4.4%, its 18th consecutive quarter of growth, it said. Pretax profit rose to £26m from £14m the prior year.
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JD Wetherspoon (JDW): reported 5% increase in like-for-like sales
Board maintains final dividend of 8p per share payable on Nov. 29
JD Wetherspoon, the UK pub chain, reported a 5% increase in like-for-like sales and a 2% gain in revenue for the 52-week period to £1.7bn. Profit before tax and exceptional items rose 4.3% to £107.2m for the period. The board maintained its final dividend of 8p per share payable on Nov. 29.
Read more...Avon Rubber (AVON); pre-close trading update: FY18 adjusted PBT to be in line with expectations
Stock up 1.44% to 1,410p at 8:33
In its trading update for the year ended 30 September 2018, AVON reported positive performances across its segments Avon Protection and Milkrite (InterPuls).
Read more...Legal & General Group announced its largest ever bulk annuity policy
£4.4bn buy-in for British Airways’ pension scheme
The arrangement, which covers nearly 22,000 pensioners, means that Legal & General has completed £6bn of global pension de-risking transactions so far this year to date.
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