The Week Ahead: DSG International sales expected to power ahead

High-street trends will be back in focus when the electrical goods giant DSG International issues an update on Thursday. Anticipating a boost from the football World Cup, UBS is looking forward to a "solid set of figures", with DSG's like-for-like sales for the first quarter expected to be up 2.5 per cent.

In the UK, the broker expects DSG to notch up 4 per cent growth in like-for-like sales, with the PC World business weighing against strength at Currys. "The gross margin will be keenly watched as the negative impact from higher TV sales in the UK should be offset by a greater focus on gross margin in the Nordic regions," UBS said in a note.

Looking ahead, any comments about the outlook will be closely watched, particularly in light of growing caution about the health of consumer spending. As a gauge, Bank of America-Merrill Lynch warned last week that its lead indicator for the UK was "still trending downwards, suggesting falling sales momentum until at least spring next year".

"In the Nordics, the macro outlook is better and we expect GDP growth to continue to outperform the rest of Europe, although rising interest rates should put more pressure on household cashflows in 2011," Merrill added.



Today

The self-storage hire specialist Safestore is due to issue an update this morning and Numis expects the company to confirm that the momentum seen at the time of its half-yearly results has persisted into the third quarter.

"The focus will be on the group's occupancy and rate performance, and whether the strong level of enquiries recorded at the interim results have translated into lets," the broker said in a preview last week.

Results/Updates: Afren, British Polythene Industries, Candover Investments, Hansteen Holdings, 888 Holdings and Safestore.



Wednesday

Results/Updates: Hargreaves Lansdown, IQE and Johnson Service.



Thursday

Costs will come under the spotlight when McBride, Europe's biggest manufacturer of own-brand cleaning and personal care products for the big supermarkets, issues its annual figures.

Panmure Gordon's analysts are anticipating news of a 45 per cent increase in operating profits to £49.9m. In addition to news about promotional activity, Panmure says the company's investors are likely to focus on how much McBride's input costs have risen since June. The update will also be the first opportunity that its new chief executive, Chris Bull, has had to share his strategy with the market.

"Although we do expect any significant change in strategic direction, we be looking for an indication of any change in approach in areas such as expansion in the Far East and any potential scope to further improve operating margins," Panmure said. It forecast earnings of 18.4p per share.

The recruitment specialist Hays will also issue full-year numbers on Thursday. UBS is looking for £77m in earnings before interest and tax – just below the consensus forecasts of £79m. Hays has already posted an update for the final quarter, with revenues growing by 8 per cent in constant currency terms.

This time round, UBS expects the market to focus on news about Hays's trading during the summer months and on pointers for the second half of the calendar year, "particularly in the UK business, which has significant exposure to Government-related work".

Also on Thursday, investors will be awaiting half-year results from Restaurant Group, the owner of the Garfunkel's and Chiquito chains. Assuming flat like-for-like sales and margins, Numis is looking for a 7 per cent rise in pre-tax profits to £23.4m. "As at 2 May, like-for-like sales were up 0.5 per cent, but subsequent dry weather, poor cinema releases and the World Cup may have slightly undermined trading [later in the second quarter]," the broker said, adding that it expected to maintain its full-year forecast after this week's results.

Results/Updates: Eaga, Go-Ahead, Hays, McBride, Restaurant Group and DSG International.



Friday

UBS is expecting to hear of modest traffic increases when British Airways posts its traffic and capacity statistics.

"In July, the traffic for BA fell by 2.6 cent, while the capacity fell by 1.9 per cent. This was expected given the company policy of focusing more on yields rather than on increasing traffic," the broker said.

It expects BA's capacity figures to start ticking up from October.

Results/Updates: British Airways passenger numbers.

Today: Mortgage approval figures; net consumer credit figures.



Thursday: Construction purchasing managers' index, US initial jobless claims.



Friday: US non-farm payrolls report

Start your day with The Independent, sign up for daily news emails
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Retirement Coordinator - Financial Services

Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...

Recruitment Genius: Annuities / Pensions Administrator

Negotiable: Recruitment Genius: You will be the first point of contact for all...

Ashdown Group: HR, Payroll & Benefits Officer - Altrincham - up to £24,000.

£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...

Ashdown Group: Learning and Development Programme Manager

£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...

Day In a Page

The saffron censorship that governs India: Why national pride and religious sentiment trump freedom of expression

The saffron censorship that governs India

Zareer Masani reveals why national pride and religious sentiment trump freedom of expression
Prince Charles' 'black spider' letters to be published 'within weeks'

Prince Charles' 'black spider' letters to be published 'within weeks'

Supreme Court rules Dominic Grieve's ministerial veto was invalid
Distressed Zayn Malik fans are cutting themselves - how did fandom get so dark?

How did fandom get so dark?

Grief over Zayn Malik's exit from One Direction seemed amusing until stories of mass 'cutting' emerged. Experts tell Gillian Orr the distress is real, and the girls need support
The galaxy collisions that shed light on unseen parallel Universe

The cosmic collisions that have shed light on unseen parallel Universe

Dark matter study gives scientists insight into mystery of space
The Swedes are adding a gender-neutral pronoun to their dictionary

Swedes introduce gender-neutral pronoun

Why, asks Simon Usborne, must English still struggle awkwardly with the likes of 's/he' and 'they'?
Disney's mega money-making formula: 'Human' remakes of cartoon classics are part of a lucrative, long-term creative plan

Disney's mega money-making formula

'Human' remakes of cartoon classics are part of a lucrative, long-term creative plan
Lobster has gone mainstream with supermarket bargains for £10 or less - but is it any good?

Lobster has gone mainstream

Anthea Gerrie, raised on meaty specimens from the waters around Maine, reveals how to cook up an affordable feast
Easter 2015: 14 best decorations

14 best Easter decorations

Get into the Easter spirit with our pick of accessories, ornaments and tableware
Paul Scholes column: Gareth Bale would be a perfect fit at Manchester United and could turn them into serious title contenders next season

Paul Scholes column

Gareth Bale would be a perfect fit at Manchester United and could turn them into serious title contenders next season
Inside the Kansas greenhouses where Monsanto is 'playing God' with the future of the planet

The future of GM

The greenhouses where Monsanto 'plays God' with the future of the planet
Britain's mild winters could be numbered: why global warming is leaving UK chillier

Britain's mild winters could be numbered

Gulf Stream is slowing down faster than ever, scientists say
Government gives £250,000 to Independent appeal

Government gives £250,000 to Independent appeal

Donation brings total raised by Homeless Veterans campaign to at least £1.25m
Oh dear, the most borrowed book at Bank of England library doesn't inspire confidence

The most borrowed book at Bank of England library? Oh dear

The book's fifth edition is used for Edexcel exams
Cowslips vs honeysuckle: The hunt for the UK’s favourite wildflower

Cowslips vs honeysuckle

It's the hunt for UK’s favourite wildflower
Child abuse scandal: Did a botched blackmail attempt by South African intelligence help Cyril Smith escape justice?

Did a botched blackmail attempt help Cyril Smith escape justice?

A fresh twist reveals the Liberal MP was targeted by the notorious South African intelligence agency Boss