Last year’s annual results from Ocado Group were disappointing, even by its standards. The FTSE 100 online retailer and technology company unveiled a £500.8 million pre-tax loss in the 2021-22 year, up from £177 million the year before and worse than analysts’ forecasts of a £399 million loss. The company has indicated that this year’s finals on Thursday are not likely to show a big improvement.
Ocado’s retail division, which accounts for about 90 per cent of its revenue, is expected to deliver “mid-single-digit” sales growth and “marginally positive” earnings before deductions for the 2022-23 year, after revenue growth increased in its fourth quarter. Ocado Retail, a joint venture with Marks & Spencer, made a loss of £4 million in its 2021-22 year as shoppers returned to bricks-and-mortar supermarkets after the online pandemic boom. There is unlikely to be an update on M&S’s multimillion-pound payment due to Ocado under the terms of their partnership, as negotiations are continuing between the two retailers.
Revenue at Ocado’s “solutions business” — the technology division that licenses warehouse and logistics technology to retailers — is forecast to have increased by 40 per cent and for earnings before to be “positive”.
Tomorrow
Having issued third-quarter trading figures in November, investors will be ready for an update from Smith & Nephew when it publishes annual results. The company, one of the world’s biggest medical equipment makers, is seeking to revive its orthopedics business, improve productivity and accelerate growth in its advanced wound management and sports medicine and ear, nose and throat franchises. In November, it forecast full-year underlying revenue growth towards the higher end of its 6 per cent to 7 per cent guidance range, but the trading profit margin was expected to be about 17.5 per cent, owing to headwinds in China.
Interims McBride
Advertisement
Finals Abrdn, Croda, Smith & Nephew, Synectics, Uniphar, Unite
Wednesday
Taylor Wimpey confirmed last month that it had sold 10,848 homes in 2023, almost a quarter fewer than in the previous year. Given the backdrop of spiralling interest rates and the cost of living crunch, that was not too much of a surprise.
As a result, when the developer publishes its full-year results, it still expects to report an operating profit of nearly £470 million, the top end of what bosses had hoped for. There are unlikely to be any surprises in the 2023 figures, so the market will keen to see if there has been a pick-up in trading since the turn of the year.
Interims Avingtrans
Finals Aston Martin Lagonda, Derwent London, Glenveagh Properties, International Personal Finance, Just Eat Takeaway, Primary Health Properties, Reckitt Benckiser, RHI Magnesita, St James’s Place, Taylor Wimpey, The Co-operative Bank, Renewables Infrastructure
Advertisement
Trading update ASA International
Economy SMMT UK monthly automotive manufacturing figures
Thursday
Expect to hear plenty at the London Stock Exchange Group annual results from David Schwimmer, its chief executive, about harnessing artificial intelligence. Thanks to his joint venture with Microsoft, he at least has a credible partner with which to find clever ways to crunch and sell the huge volumes of data that the group amasses through its biggest division. Analysts have pencilled in revenues up by 8 per cent to £8.36 billion and adjusted pre-tax profits of £2.73 billion.
There is never a dull moment in the international aviation industry, what with conflict in Ukraine and the Middle East as well as problems with manufacturers’ engines and uncertainty over consumer spending capacity. International Consolidated Airlines Group — housing British Airways, Iberia, Aer Lingus and Vueling — will report profits of about €2.9 billion for 2023 on sales of more than €29 billion. But the story will be about 2024.
Interims CVS Group
Advertisement
Finals Allfunds, Cairn Homes, CRH, Dalata Hotel, Drax, Faron Pharma, Haleon, Hammerson, Howden Joinery, Hunting, International Consolidated Airlines, London Stock Exchange Group, Ocado, MacFarlane, Man Group, Mobico, PPHE Hotel, Schroders, Serco, Shaftesbury Capital, Spectris, Spire Healthcare, Vesuvius, Weir
Friday
Finals IMI, Pearson, Rightmove, Tritax Big Box Reit
Economy S&P Global UK manufacturing PMI
