Cineworld Group PLC (LON:CINE) will report its final results on Thursday in what many are expecting to be something of a horror show as the pandemic battered the cinema industry.
The results do, however, follow the glimmer of light which came on Tuesday revealing that it will start reopening its US cinemas next week, and, it has inked a new deal with Warner Bros.
Cineworld has been forced to rely on every possible lifeline to stay afloat as lockdown restrictions across the world forced it to shutter its screens and simply wait out the pandemic. In November it managed to secure another US$450mln loan as well as an extension of a US$111mln revolving credit facility, while the firm may also start to see a light at the end of the tunnel as vaccine rollouts raise hopes of a return to normality.
With this in mind, investors are likely to focus heavily on how the company sees the rest of the year panning out, with a swift recovery likely to be crucial to maintaining confidence assuming it UK cinemas reopen around May 17 as per the government’s lockdown relaxation plan.
United Utilities expected to hail a strong financial performance
United Utilities Group PLC (LON:UU.) issues a trading update on Thursday and the market will do its best to contain its excitement.
The company had a capital markets event earlier this month at which it said it had accelerated investment into this first year of the new regulatory period and targeted those areas that benefit customers and the environment most.
“As a result, we are pleased to provide updated guidance for the outperformance we expect to achieve against our customer ODIs [outcome delivery incentives] of up to £20 million for this year,” said Steve Mogford, the chief executive officer of the water utility company.
Based on the company’s presentation deck from that capital markets event the trading update will contain mentions of a “strong financial performance” and “excellent operational delivery”, as well as details on that “accelerated investment” it has made.
Compass direction remains unclear
A Compass Group PLC (LON:CPG) update for the six months to end-March is on the menu for Thursday, just a few weeks after the catering colossus said its sales so far in 2021 have remained depressed by the effect of the coronavirus pandemic.
Closures of offices and sports stadiums have hit the FTSE 100 group’s top line, while its school dinners business has been making uncomfortable headlines for the company.
Organic revenue in the quarter ending in December was down by a third, a very slight improvement on the 34.1% decline for the quarter ending its previous financial year.
After its Chartwells school dinners business was accused of profiteering by providing insultingly inadequate school meals packages during lockdown, the FTSE 100 group said it had “taken several corrective measures that include improved supply chain processes, additional guidance and resources for our employees, and stronger quality assurance checks”.
For this update, investors will be focused on looking forward to when economies can reopen.
“We don’t expect these numbers to look pretty,” said fund manager Steve Clayton at Hargreaves Lansdown.
“What really matters is how Compass can take advantage of the reopening of economies. Will the business be able to capitalise on its financial strength to gain share against weaker rivals? So far the market is unconvinced, with Compass lagging against major rivals Aramark in the US and Sodexho of France.”
Thursday March 25
Trading announcements: United Utilities Group PLC (LON:UU.), Compass Group PLC (LON:CPG)
Finals: Cineworld Group PLC (LON:CINE), SIG PLC (LON:SHI), Allied Minds PLC (LON:ALM), BBGI Global Infrastructure SA (LON:BBGI), Biome Technologies plc (LON:BIOM), Ebiquity PLC (LON:EBQ), Faron Pharmaceuticals Oy (LON:FARN), Funding Circle Holdings PLC (LON:FCH), International Public Partnership Ltd (LON:INPP), Lamprell PLC (LON:LAM), Learning Technologies Group PLC (LON:LTG), Regional REIT Ltd (LON:RGL), Robinson PLC (LON:RBN), S4 Capital PLC (LON:SFOR), Safestyle UK PLC (LON:SFE), Secure Trust Bank PLC (LON:STB), Surgical Innovations Group PLC (LON:SUN), Tandem Group PLC (LON:TND), Venture Life Group PLC (LON:VLG), International Public Partnerships Ltd (LON:INPP)
Interims: Genedrive PLC (LON:GDR)
FTSE 100 ex-dividends to knock 7.97 points off the index: British American Tobacco PLC (LON:BATS), NatWest Group PLC (LON:NWG), Prudential PLC (LON:PRU), Schroders PLC (LON:SDR), Pearson PLC (LON:PSON), Ferguson PLC (LON:FERG)
Economic data: US GDP, US jobless claims