Looking Ahead At The Next Week
Companies: ACRL, FIF, FOX, GAW, IKA, KMK, PFD, TAST
Company news, such as Interim results, Final results, AGM statements and Trading Updates, are all recognised by active investors as being spurs that generate interest and dealing activity.
This column highlights some company news that will be announced in the week ahead.
Check out any of the companies mentioned by using the Research-Tree Companies Research link.
Monday 11th January
Interims: None declared
Finals: None declared
Trading Updates: Abcam (ABC), Sig (SHI),
AGMs: Equatorial Palm Oil (PAL), Honye Financial Services (HOYE), Premier Foods (PFD) General Meeting
Research Tree Comment:
Towards the end of June last year Edison Research were positive about the outlook for ambient foods sector group Premier Foods (PFD). That was subsequent to the annual results to end March. The first half saw a 15% revenue rise to £421.5m, upon which the company in the 26 weeks to end September reported a 50.2% adjusted pre-tax profits rise to £47.7m.
The group sold off its stake in Hovis for a net £37.3m early last November and has accelerated its overall debt reduction. This days General Meeting is to approve the Capital Reduction as part of the group’s recent strategic turnaround programme.
Tuesday 12th January
Interims: Accrol Grp Hldgs (ACRL), Games Workshop (GAW), Gateley Hldgs (GTLY),
Finals: None declared
Trading Updates: DFS Furniture (DFS), JD Sports (JD.), Vistry Grp (VTY), THG Hldgs (THG), XP Power (XPP),
AGMs: Carrs Grrp (CARR), Impax Environmental Mkts (IEM), Myanmar Invs Int (MIL), Premier Oil (PMO), RDL Realisation (RDL),
Research Tree Comment:
The interims from Accrol Group (ACRL), the loo roll and kitchen towel maker, should be positive. The recent acquisition of the Leicester Tissue Company was earnings enhancing, but those will show up in the H2 results. Liberum Capital analyst Wayne Brown is very bullish and reckons that the group is growing into a much larger, financially and operationally robust business.
Rating the LTC deal as ‘transformational’ brokers Zeus Capital considers that a share price of 69p-78p over the next year is a re-rated target. They are going for adjusted pre-tax profits of £8.5m (£4.7m) for the year to end April 2021, while predicting £17.5m for next year.
Edison Research considered that the first half trading update from Games Workshop (GAW) showed impressive momentum as the table-top miniature games maker goes into its second half year. This day’s interim results could well see revenue and profit estimates being uplifted.
Wednesday 13th January
Interims: Kromek Grp (KMK), Rosslyn Data Technologies (RDT),
Finals: None declared
Trading Updates: Asos (ASC), Ferrexpo (FXPO), Persimmon (PSN), J. Sainsbury (SBRY), Topps Tiles (TPT),
AGMs: AB Dynamics (ABD), Majedie Invs (MAJE), Octagonal (OCT), Real Good Food (RGD), Tasty (TAST) General Meeting,
Research Tree Comment:
The interim results to end October are due to be announced on this day the Kromek Group (KMK), the radiation detection company. In a recent, early December review on the company, Equity Developments stated that the shares appeared to be attractively priced as the group continues to win new contracts. It focusses its detection technology products upon the medical, security screening and nuclear markets.
On 1st January this year, when retiring from the group’s Board, Sir Peter Williams, non-executive Chairman, stated that he is looking forward to watching its continued progress. Current year revenue and profit forecasts are likely to be reinstated with this interim statement.
In mid-October brokers SP Angel updated comment upon the group’s new research and development project in cancer surgery.
While just a week earlier analyst Simon Strong at brokers Cenkos Securities declared the company to be getting back on track, with no diminution of market opportunity.
Just before Christmas the UK branded restaurant operator Tasty (TAST) announced that it was trading from 54 of its ‘Dim t’ and ‘Wildwood’ branches. But that was before the latest lockdown. However, it intended to offer takeaway and delivery services across 43 open units. It has achieved rent reductions and lease concessions on more than half of its estate, but trading continues to be challenging. This days General Meeting covers a related party transaction, issue of growth shares and adopting new articles.
On the group’s interims at the end of October, broker Cenkos Securities was impressed that the group had continued to benefit from its debt free balance sheet, while increasing its year-on-year net cash position.
Thursday 14th January
Interims: Gateley Holdings (GTLY), Ilika (IKA),
Finals: Blue Prism Grp (PRSM), Safestore Hldgs (SAFE), Titon Hldgs (TON),
Trading Updates: Boohoo Grp (BOO), Brooks Macdonald Grp (BRK), Card Factory (CARD), Dunelm Grp (DNLM), Hays (HAS), Lamprell (LAM), Taylor Wimpey (TW.), Tesco (TSCO), Whitbread (WTB), Workspace Grp (WKP), Wood Grp (WG.)
AGMs: AA (AA.), Associated British Foods (ABF), C&C Grp (CCR), Cardiff Property (CDFF), Future (FUTR), Goco Grp (GOCO), ICG-Longbow (LBOW),
Research Tree Comment:
The interim results to end October last, from Ilika (IKA), the pioneer in solid-state battery technology, will be eagerly anticipated by investors. Demand from the automotive sector will be impactive. The group is said to be confident about the prospects for its Goliath larger format batteries, but states that mass market commercialisation is dependent on further technical development and successful manufacturing scale-up.
Brokers to the company Liberum Capital noted that first half trading was in-line and considered that there have been a number of positive developments in relation to the market for large format batteries. After a recent surge the group’s shares are currently trading at 178p, a high for the last year.
Elsewhere the Christmas Trading Season reports continue this day Card Factory (CARD), Dunelm Group (DNLM), Tesco (TSCO) and Whitbread (WTB).
We will also see an update from the recently highly publicised Boohoo Group (BOO), which is seen by its brokers Zeus Capital as a clear market leader in the global e-commerce sector.
Friday 15th January
Interims: Finsbury Food Grp (FIF),
Finals: None declared
Trading Updates: Frontier Developments (FDEV),
AGMs: Katoro Gold (KAT) General Meeting, Marwyn Value Investors (MVI), Summerway Capital (SWC), Zenith Energy (ZEN),
Research Tree Comment:
Towards the end of last November brokers Cenkos Securities reinstated their revenue and profit forecast for Finsbury Food Group (FIF). This day will see the Pre-Close Interim Trading Update for the six months to end December from this leading UK speciality bakery manufacturer of cakes, breads and morning foods.
Resilient trading was described in the group’s AGM statement, convincing the broker to update its rating on the shares from being ‘Under Review’ to being a ‘Buy’.
On this day Katoro Gold (KAT) will be holding a General Meeting to seek shareholders approval for the increase of its capital following a much-needed Placing of £960,000 @ 2p a share.
That oversubscribed fund raising helps to boost the company’s working capital for its gold and nickel exploration and development activities.
Both SP Angel and Hybridan follow the company, which announced on 30th December that it had commenced drilling at its 65% owned Haneti Nickel Project in central Tanzania.
