Associated British Foods PLC, JD Sports and Frontier Developments bring computer

Back to school for the kids and back to financial results for the City, with the hustle and bustle returning to London’s listed companies in a busy coming week even if the streets of the Square Mile are still pretty deserted. 

In terms of macro data it will be quieter, with the main UK events being retail sales on Monday and industrial production on Friday, while in the politicial sphere Brexit should dominate as the latest negotiations take place on the future relationship between the UK and the EU.  

The week will start with a full-year trading update from Primark owner (), where its fast-fashion chain had to cope with a coronavirus lockdown without a developed online operation.

Investors will also be eyeing current trading at the group’s Primark stores following their reopening and how much this has contributed in the final quarter of the group’s financial year.

Retail operating profits are estimated to be between £300mln-350mln, which is lower than last year but better than some had expected.

ABF, which is a big sugar producer and grocery and food ingredients producer, said it expected to return to cash generation in the last quarter, with the grocery arm watched for details of the boost from increased supermarket sales during lockdown.

However, this uplift could slow in the final months of the year as supermarket shopping rates slowed amid the relaxation of lockdown restrictions.

JD and tonic

Tuesday will be busier in terms of company news, including half-year results from sports retail star (), which cut its final dividend for last year to preserve cash when it last came to the market with final results in July.

At the time the ‘athleisure’ specialist said it was investing further in its main warehouse, near Manchester, as it expects a permanent shift of demand to online shopping following a doubling of digital sales amid the coronavirus pandemic.

Its first half, starting on 2 February, 2020, has been “like no other”, said analysts at Peel Hunt, with strong trading at the beginning, followed by lockdown during which time online did extremely well. 

“Of most interest will be how the stores have done since mid-June. 

“The evidence of peers in the US is that things have been OK in that territory, and JD will doubtless be at the top end of performance in the UK.”

Also on Tuesday, PLC () will release interims where investors will be wanting to see how on-trade demand, which includes restaurants and bars, has performed over the summer after spring was pretty much cancelled due to coronavirus.

The tonic and mixers maker had been struggling during lockdown as the out-of-home segment had accounted for 50% of UK revenue and 70% of US revenue, though sales in the off-trade channel, consisting of supermarkets and shops, has seen growth. 

How are and DS Smith riding pandemic trends

Interim results from builders’ merchant PLC (), also on Tuesday, come after a July update that showed sales for the first six months of the year came in better than expected. 

Building companies were forced to slowed development for part of the period, with Travis Perkins like-for-like sales down 20% in the first half, with a 4% fall in the first quarter giving way to a 35% decline in the second.

The focus in these results will clearly be on trading in July and August, and looking forward, especially given the context of a recovering housing market. A key determinant of profitability in Wickes will be the strength to which the kitchen market has recovered, analysts say.

A trading update from packaging group (LON:SMDSL) on Tuesday will likely have read-through to wider trends during the pandemic.

Industrial demand undoubtedly took a hit during the lockdown, although there is likely to…