Business this week: results, meetings and indicators

First-half results at IFG have been preceded by a profit warning issued in late July

Grafton Group CEO Gavin Slark: shareholders will be looking forward to the details of Grafton Group’s first-half performance this week following very positive indications. Photograph: Nick Bradshaw

Grafton Group CEO Gavin Slark: shareholders will be looking forward to the details of Grafton Group’s first-half performance this week following very positive indications. Photograph: Nick Bradshaw

 

MONDAY

Indicators: Irish retail sales (July); euro zone loan growth (July)

TUESDAY

Results: Datalex

Indicators: Irish overseas travel (May-July); German consumer confidence (Sep); US consumer confidence (Aug)

Meetings: Pre-launch event for Responsible Innovation Summit 2017 ( Grand Canal Street Lower, Docklands, Dublin)

WEDNESDAY

Results: IFG Group, Workday

Indicators: Irish unemployment (Aug); euro zone business confidence (Aug), services, economic and industrial sentiment (Aug), consumer confidence (Aug); UK house prices (Aug), consumer credit (July), mortgage lending and approvals (July); German inflation (Aug); US GDP growth (Q2)

Meetings: Zamano egm (Conrad Hotel, Dublin); The Digital Transformation of Ryanair talk from airline’s head of infrastructure Declan Costello (The Mill Enterprise Hub, Drogheda)

First-half results at IFG on Wednesday have been preceded by a profit warning issued in late July. On foot of that news, shares in the financial services group initially slumped more than 7 per cent. The company said its profits would be materially lower than expected as a result of accelerated restructuring of its James Hay business, as well as legal costs.

IFG expects both James Hay and Saunderson House to deliver adjusted operating profits in line with market consensus this year and to replace lost interest income with more stable and predictable fee income. This would position them to deliver meaningful profit growth in 2018.

However, it said in July, and as previously disclosed, the group was facing legal and remediation costs in relation to legacy investments.

“We are engaged in ongoing discussions with HMRC [British revenue and customs] to clarify any potential sanction charges, but due to the complexity of the matter any financial exposure to the group, which is a function of any sanction charges offset by recoveries, is unlikely to be resolved by the time of the announcement of our interim results on the 30th August,” it reported.

It approved an acceleration of the restructuring plan at James Hay. The level of exceptional costs in 2017 is expected to “increase materially”, reducing group profits.

THURSDAY

Results: Grafton Group, Ladbrokes Coral Group, Total Produce, Campbell Soup,

Indicators: Euro zone inflation (Aug), unemployment (July); UK consumer confidence (Aug); German retail sales (July), unemployment (Aug)

Meetings: British and Irish Trading Alliance networking evening (Westin Hotel, Dublin)

Prof Brian Norton: he addresses the First Friday for Start-Ups event at Customs House Quay, Dublin. Photograph: Nick Bradshaw
Prof Brian Norton: he addresses the First Friday for Start-Ups event at Customs House Quay, Dublin. Photograph: Nick Bradshaw

Shareholders will be looking forward to the details of Grafton Group’s first-half performance this week following very positive indications. Shares in the builders merchants and DIY outfit jumped early last month when a trading statement revealed better-than-expected H1 results on the back of UK performance and its Selco Builders Warehouse in particular.

Total like-for-like sales increased 5.9 per cent in the second quarter, up from 5.5 per cent for the previous three months, the Dublin-based group said, bringing the figure for the first half to 5.7 per cent.

Official results on Thursday could add meat to this already appetising story of strong business performance.

If anything might dampen the mood it will be chief executive Gavin Slark’s assertion that they “remain cautious about the shorter-term impact of current uncertainty and pressure on real incomes which may temper growth” in housing renovation and maintenance.

July’s results showed that while merchant sales growth expanded to 4.7 per cent from 4.4 per cent over two quarters in the UK, they fell back to 10.2 per cent from 14.6 per cent in Ireland.

Davy analysts said in a note to clients they planned to raise full-year earnings forecasts by as much as 3 per cent even though the group had not revealed interim earnings.

FRIDAY

Indicators: Irish manufacturing PMI (Aug); euro zone manufacturing PMI (Aug); UK manufacturing PMI (Aug); US unemployment (Aug), manufacturing PMI (Aug), car sales (Aug)

Meetings: Future Finance co-founder Brian Norton addresses First Friday for Start-Ups event (Dogpatch Labs Chq buildings, Customs House Quay, Dublin)

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
GO BACK
Error Image
The account details entered are not currently associated with an Irish Times subscription. Please subscribe to sign in to comment.
Comment Sign In

Forgot password?
The Irish Times Logo
Thank you
You should receive instructions for resetting your password. When you have reset your password, you can Sign In.
The Irish Times Logo
Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.
Screen Name Selection

Hello

Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
Forgot Password
Please enter your email address so we can send you a link to reset your password.

Sign In

Your Comments
We reserve the right to remove any content at any time from this Community, including without limitation if it violates the Community Standards. We ask that you report content that you in good faith believe violates the above rules by clicking the Flag link next to the offending comment or by filling out this form. New comments are only accepted for 3 days from the date of publication.