logo-loader

Investors looking for some thirst quenchers from Britvic, Fevertree, and Fuller's

Last updated: 15:00 24 Jul 2018 AEST, First published: 21:05 23 Jul 2018 AEST

Tango can

investors are likely to pour over trading updates from soft drinks firm Britvic Plc (LON:BVIC) and brewer and pubs operator Fuller Smith & Turner PLC (LON:FSTA), as well as first-half results from mixers firm Fevertree Drinks PLC (LON:FEVR).

CO2 shortages in the UK, a rainy June in France and strikes in Brazil means that Britvic’s third-quarter update will likely be somewhat softer than would have been anticipated a few weeks ago.

READ: Wetherspoons eyed for CO2 shortage impact as week reaches mid-point

Deutsche Bank expects the FTSE 250-listed firm to report a 0.5% decline in organic sales - excluding the pricing effect of the UK sugar tax pass-on – with reported sales seen at £381mln, up 6.8%.

That said, the German bank’s analysts see Britvic reiterating that it is comfortable with full-year consensus forecasts for adjusted underlying earnings (EBIT) of £203mln as it doesn't think the profit impact of the CO2 shortage will be material.

Meanwhile, Fevertree’s interims will all be about the outlook, particularly for its US operations, which the group took overall control from 1 June 2018.

Despite the current warm weather, analysts expect a moderation in growth in Fevertree’s mature UK market for the full year and will look for any CO2 shortage impact.

However, by contrast, Fuller’s first quarter trading update should be strong, in Peel Hunt’s view, with managed pubs like-for-likes (LFL) sales ahead of their full-year forecast of 2.0% and the 2.5% increase seen in the first nine weeks’ of the year.

The City broker thinks that the FTSE small cap firm’s sales should have benefited from the hot weather and the World Cup, given that 82% of its estate is not food-led and 90% of the managed pubs offer outside drinking.

Last year, the weather was not great during July-September, a period when LFL sales fell into slight negative territory for both Fuller’s and the managed pub/pub restaurant sector.

Hammerson under pressure

Away from the pubs and drinks firms, real estate groups will also be a focus with first-half numbers due from Hammerson PLC (LON:HMSO), a day after the FTSE 250-listed firm offloaded two retail parks for £164mln.

It has been a very eventful period for Hammerson, albeit with very little accomplished after the firm’s all-share offer for mid-cap rival Intu Properties PLC (LON:INTU) fell by the wayside following a takeover proposal for Hammerson itself from French firm Klepierre, which was rejected.

Elliot Capital Advisors, the US activist investor, has now built up a 5% stake in Hammerson and will likely push for change if unimpressed by the strategy presented at the interims.

Peel Hunt forecasts Hammerson reporting net asset value (NAV) growth of around 2% over the full year, however, it wouldn’t be surprised to see half-year valuations see a hit, especially given the recent 11% write-down by Land Securities PLC (LON:LAND) of the Bluewater shopping centre.

Another property play, student accommodation group Unite PLC (LON:UTG) will also report its interims on Tuesday,  with demand remaining robust and lettings for the 2018/19 academic year at 89%.

In a preview, Peel Hunt’s analysts said: “Our strong earnings and dividend growth forecasts over the next three years reflect the company’s continued transition towards an earnings-focused best-in-class owner and operator.”

Significant events expected on Tuesday July 24:

Trading update: Britvic Plc (LON:BVIC), Fuller Smith & Turner PLC (LON:FSTA), Wizz Air Holdings PLC (LON:WIZZ)

Interims: Hammerson PLC (LON:HMSO), Fevertree Drinks PLC (LON:FEVR), Drax Group PLC (LON:DRX), Centaur Media PLC (LON:CA), Gresham Technologies plc (LON:GHT), Huntsworth PLC (LON:HNT). Proteome Sciences plc (LON:PRM); Science Group PLC (LON:SAG), Spectris plc (LON:SXS), Unite Group PLC (LON:UTG)

Finals: IG Group PLC (LON:IGG), PZ Cussons PLC (LON:PZC), Highlands Natural Resources Plc (LON:HNR), The Fulham Shore PLC (LON:FUL), Victoria PLC (LON:VCP)

AGMs: Halfords PLC (LON:HFD)

Economic data: CBI industrial trends survey; US FHFA home price index; US composite PMI

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

12 hours, 42 minutes ago