The Week Ahead: Kingfisher set to enjoy bank holiday boost

The recent run of bank holidays, together with plenty of sunny weather, means Kingfisher's first-quarter results, due out on Thursday, should be encouraging.

Aurelie Caspar, of Bank of America, believes the DIY retailer's B&Q business will have seen its like-for-like sales rise 1.5 per cent over the three months. However, she predicts there will be a divide between the performance of its seasonal products and its big ticket items, sales of which she expects to have been "subdued".

UBS, meanwhile, is a touch more bullish, forecasting a sales growth of 2 per cent. Its analysts also highlight data from France showing the continuing strength of the DIY market there, and they feel its Casto and Brico chains in the country should see their sales figures rise 4 per cent and 2 per cent respectively.

There will also be a focus on China, where the company has been working on reshaping its presence. These measures – which include the closure of a number of stores – should result in its losses from the country falling yet again, says UBS.

Ms Caspar agrees, expecting them to have been halved to £5m. This will contribute, says the analyst, to a retail profit across the whole group of £174m – up 19 per cent – while UBS predicts a profit of £180m.


Results/Updates: Majedie.


Wolseley releases its third-quarter interim management statement on Wednesday. The plumbing supplies group has suffered recently from its exposure to the US, which contributes roughly 40 per cent of its turnover. Recent data has not provided much reason for optimism, so its performance across the Atlantic over the period will be closely watched.

In terms of its outlook, any signs of a jump in activity in the US housing market will be good, although Deutsche Bank believes "a recovery of sorts is now in part priced in and as such a better than expected recovery will now have to ensue."

The broker expects its organic growth to have slowed by 1 per cent to 6 per cent for the third quarter, with the company revealing a gross profit of £929m.

The water groups' reporting season continues this week, and after recent updates from Pennon, United Utilites and Severn Trent, Northumbrian Water takes its turn tomorrow. Royal Bank of Scotland's Iain Turner predicts the utility's pre-tax profit for the year will rise to £185m from £170m thanks to positive changes in the prices it can charge, while Bank of America Merrill Lynch only expects it to reach £176m.

Also announcing figures is Intermediate Capital, with the private equity group releasing its preliminary results. Investors will be hoping the company will carry on from its positive update in January, when it announced its asset management and investment portfolio units were both performing well and enjoying growth.

James Hamilton, of Numis Securities, expects the former to contribute almost £35m in pre-tax profits and the latter to bring in nearly £165m, totalling £198.6m – an increase from the year before of 88 per cent.

Results/Updates: Intermediate Capital, Northumbrian Water, Telford Homes and Wolseley.


Asos has been one of the major success stories of the last few years:the Alternative Investment Market-listed online retailer's share price has jumped 500 per cent in the last 24 months. Such performance means tough expectations in the market, however, and Nick Raynor of the Share Centre says that, with hopes high before Thursday's preliminary results,"anything less [than positive] will not please the market."

Nonetheless, the analyst remains hopeful. "Other major retailers have noted that internet sales have improved significantly and a change in consumer trends means traditional browsing has been replaced by shoppers staying at home and only buying what they want," says Mr Raynor. "Asos should therefore be a main beneficiary as it has been in this business for years."

Also in focus on Thursday will be WPP, with the world's largest advertising group releasing a trading update alongside its annual general meeting. UBS feels that, taking into account recent comments made by its management, organic growth for the second-quarter will have stayed at around 6 per cent.

However, the broker does say that the potential impact on advertising from the recent tragedy in Japan and unrest in the Middle East and North Africa have led it to be cautious in its outlook.

Results/Updates: Asos, Johnson Matthey, Kingfisher and WPP.


Results/Updates: International Consolidated Airlines.

Economic Diary


US Conference Board consumer confidence; US Chicago purchasing managers' index; US S&P/CaseShiller home price index.


M4 money supply; Manufacturing purchasing managers' index; Mortgage approvals data; Net consumer credit; US ISM manufacturing purchasing managers' index.


Construction purchasing managers' index; US factory orders.


Services purchasing managers' index; US ISM non-manufacturing index; US nonfarm payrolls; US unemployment rate.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

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

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Collections Agent

£14000 - £16000 per annum: Recruitment Genius: This company was established in...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250 ...

Reach Volunteering: Trustees with Finance, Fundraising and IT skills

Voluntary and unpaid, reasonable expenses reimbursable: Reach Volunteering: St...

Day In a Page

Isis profits from destruction of antiquities by selling relics to dealers - and then blowing up the buildings they come from to conceal the evidence of looting

How Isis profits from destruction of antiquities

Robert Fisk on the terrorist group's manipulation of the market to increase the price of artefacts
King Arthur: Legendary figure was real and lived most of his life in Strathclyde, academic claims

Academic claims King Arthur was real - and reveals where he lived

Dr Andrew Breeze says the legendary figure did exist – but was a general, not a king
10 best PS4 games

10 best PS4 games

Can’t wait for the new round of blockbusters due out this autumn? We played through last year’s offering
Migrant crisis: UN official Philippe Douste-Blazy reveals the harrowing sights he encountered among refugees arriving on Lampedusa

‘Can we really just turn away?’

Dead bodies, men drowning, women miscarrying – a senior UN figure on the horrors he has witnessed among migrants arriving on Lampedusa, and urges politicians not to underestimate our caring nature
Nine of Syria and Iraq's 10 world heritage sites are in danger as Isis ravages centuries of history

Nine of Syria and Iraq's 10 world heritage sites are in danger...

... and not just because of Isis vandalism
Girl on a Plane: An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack

Girl on a Plane

An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack
Why Frederick Forsyth's spying days could spell disaster for today's journalists

Why Frederick Forsyth's spying days could spell disaster for today's journalists

The author of 'The Day of the Jackal' has revealed he spied for MI6 while a foreign correspondent
Markus Persson: If being that rich is so bad, why not just give it all away?

That's a bit rich

The billionaire inventor of computer game Minecraft says he is bored, lonely and isolated by his vast wealth. If it’s that bad, says Simon Kelner, why not just give it all away?
Euro 2016: Chris Coleman on course to end half a century of hurt for Wales

Coleman on course to end half a century of hurt for Wales

Wales last qualified for major tournament in 1958 but after several near misses the current crop can book place at Euro 2016 and end all the indifference
Rugby World Cup 2015: The tournament's forgotten XV

Forgotten XV of the rugby World Cup

Now the squads are out, Chris Hewett picks a side of stars who missed the cut
A groundbreaking study of 'Britain's Atlantis' long buried at the bottom of the North Sea could revolutionise how we see our prehistoric past

Britain's Atlantis

Scientific study beneath North Sea could revolutionise how we see the past
The Queen has 'done and said nothing that anybody will remember,' says Starkey

The Queen has 'done and said nothing that anybody will remember'

David Starkey's assessment
Oliver Sacks said his life has been 'an enormous privilege and adventure'

'An enormous privilege and adventure'

Oliver Sacks writing about his life
'Gibraltar is British, and it is going to stay British forever'

'Gibraltar is British, and it is going to stay British forever'

The Rock's Chief Minister hits back at Spanish government's 'lies'
Britain is still addicted to 'dirty coal'

Britain still addicted to 'dirty' coal

Biggest energy suppliers are more dependent on fossil fuel than a decade ago