New Trading Statements May Cause Market Movements

Various trading statements are being released this week by big UK brands such as Burberry and M&S

Alanna Petroff 16 April, 2012 | 2:55PM
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The upcoming week is expected to be a busy one in the markets, with investors reacting to various trading statements from major FTSE-listed companies. Below is a list of some of the main companies that will be releasing trading and interim management statements this week. These documents will give investors a better idea about the health of UK-listed businesses and balance sheets.

Tuesday:
Burberry (BRBY) - Trading Statement
Man Group (EMG) - Trading Statement
Marks & Spencer Group (MKS) - Trading Statement

Wednesday:
GKN
(GKN) - Interim Management Statement

Thursday:
Hargreaves Lansdown (HL.) - Trading Update
International Power (IPR) - Interim Management Statement
SABMiller (SAB) - Trading Statement

Selected Details:
Burberry:
Burberry will be releasing a trading update for the last six month period that ended on March 31, 2012. Investors in the iconic British fashion company, Burberry, “will be looking for an update on the company’s change in strategy; the retailer has been looking to become more exclusive by catering for the higher end of the market and stopping discounts on its products at department stores,” explains Sheridan Admans, investment research manager at The Share Centre. “As part of this strategy, the shift from wholesale to retail outlets continues. It will be worth noting whether the new strategy is showing any signs of paying off or whether cotton export restrictions from India are having any material affects. Burberry expects to increase retail space by about 15% in 2012 by opening new stores across China, Latin America and a flagship store in Paris and investors will be keen to see how this expansion plan is going.“

International Power: Shares in the company bounced on Monday after France's GDF Suez (GSZ) sweetened its bid for the 30% stake in the company that it does not already own. Morningstar analyst Charles Fishman says "At this point, it seems like a done deal because the independent directors of International Power have approved the deal. It seems like a fair premium that's being offered. But it's subject to shareholder approval at their annual general meeting in May."

SABMiller: This company, which is one of the largest brewers in the world, has been showing continued strength in emerging markets but its results in developed economies in Europe and North America are lacklustre, according to Morningstar's latest SABMiller research report.

In the upcoming trading update, Morningstar analyst Thomas Mullarkey says he expects the company will outline that European and North American markets have shown slow sales due to the brewing business generally slowing down in the winter. (Generally beer sales slow in the colder months and pick up in the warmer summer months.) Mullarkey is also expecting the company to report continuws growth opportunities in Africa. Plus, there is one specific bright spot in developed markets: "There's probably going to be continued strength in their American craft beer unit, Tenth and Blake, which is a business owned by Miller-Coors, which is a joint venture between Molson Coors and SABMiller. But keep in mind Tenth and Blake is a very small portion of SABMiller's business." Craft beers have become increasingly popular amongst consumers in developed markets, and this unit has recently been seeing double-digit growth. 

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Alanna Petroff

Alanna Petroff  is a financial journalist with Morningstar UK.

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