Rolls-Royce and Frasers Group is the spotlight for Thursday

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Half-year results from Rolls-Royce Holdings PLC (LSE:RR.) is expected to see the propulsion systems maker benefit from a slight recovery in engine flying hours; the group expects these to recover in 2021 to around 55% of (pre-pandemic) 2019 levels.


Nevertheless, it will “likely be another difficult set of results with limited improvement in the flying hours of the fleet beyond cargo engines (757/767/ some A330s) and the A350,” according to UBS.


“Investors are wondering about the A330 return into flight in Asia and China as the parked remains high at 21.7% of the fleet, and airlines request for payment deferrals. PS recovery seems to lag other Industrial peers which all seem to report a strong 1H, so more colour on orders, risk to supply chain and inflationary pressure would be welcome,” the Swiss bank added.


The market is expecting half-year revenue to dip to US$5.50bn from US$5.56bn in the first half of last year. Earnings before interest and tax (EBIT) are expected to show a massive improvement from last year’s GBP1.67bn loss but should still be negative; the consensus forecast is for a loss of GBP129mln.


Finals from Frasers


Frasers Group PLC (LSE:FRAS) will deliver final results, although attention is likely to be on any updates to the firm’s cautious outlook as it continues to fret about the potential impact of the latest wave of COVID-19 infections on consumer confidence.


However, the strong spending data following the end of most lockdown restrictions may have alleviated some of the previous anxiety around sales, however, the firm’s large store estate could present another point of concern given the pressure on bricks and mortar stores amid the ongoing surge in online shopping.


ONS figures showing a fall in clothing sales in May and June may jangle some nerves also, particularly for the firm’s House of Fraser and Flannels businesses, with investors likely to hope a boom in football apparel sales from Sports Direct during the Euros has offset any weakness.


Mike Ashley may yet pinch the headlines, that’s if a report in The Telegraph proves accurate.


According to the report, Ashley is to step away from the day-to-day running of the Sports Direct parent company and will take up his old job as deputy chairman. The announcement could come in Thursday’s results statement, it added.


Thursday August 5


Finals: Frasers Group PLC, NCC Group PLC (LSE:NCC) (LSE:NCC)


Interims: Rolls-Royce Holdings PLC, Serco Group (LSE:SRP) (LSE:SRP) PLC, WPP PLC (LSE:WPP) (LSE:WPP), Centamin PLC (LSE:CEY) (LSE:CEY), Glencore PLC (LSE:GLEN) (LSE:GLEN), Meggitt PLC (LSE:MGGT) (LSE:MGGT), Evraz PLC (LSE:EVR) (LSE:EVR), Hammerson (LSE:HMSO) (LSE:HMSO) PLC, IP Group PLC (LSE:IPO) (LSE:IPO), Mondi PLC (LSE:MNDI) (LSE:MNDI), Secure Trust Bank PLC (LSE:STB) (LSE:STB), Spirent Communications (LSE:SPT) (LSE:SPT) PLC, Synthomer (LSE:SYNT) (LSE:SYNT) PLC, Tritax Big Box REIT PLC (LSE:BBOX) (LSE:BBOX), TT Electronics PLC (LSE:TTG) (LSE:TTG), ConvaTec Group PLC (LSE:CTEC) (LSE:CTEC)


FTSE 100 ex-dividends to knock 5.15 points off the index: Unilever PLC (LSE:ULVR) (LSE:ULVR), Reckitt Benckiser Group PLC (LSE:RKT, FRA:3RB, ETR:3RB) (LSE:RKT, FRA:3RB, ETR:3RB)


Economic data: BoE rates decision, UK construction PMI, US trade balance, US jobless claims

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