The week ahead: A big day for M&S

It’s been a real struggler for years, but shareholders will be watching Marks & Spencer for any sign that the latest turnaround plan is working.

Monday 21 May

Trading Statements

BGEO Group, McKay Securities, SigaRoc

AGM/EGM

TBC Bank, Restore, BP

Tuesday 22 May

Trading Statements

Renew Holdings, Shaftesbury, Topps Tiles, UDG Healthcare, Oxford Biodynamics, Homeserve, NEX Group, Intermediate Capital, Bloomsbury Publishing, Warehouse Reit, Pets At Home, Halfords, Big Yellow, 1Spatial, Cranswick, Close Brothers

AGM/EGM

Royal Dutch Shell, Jsc Kazmunaigas Exploration, Gocompare.com, Riverstone Energy, Accesso Technology, Sherborne Investors, Gulf Marine Services, Getbusy, Clearstar, Avesoro Resources, Attraqt Group, Epwin Group

Wednesday 23 May

A succession of names have tried and failed to turn around Marks & Spencer (MKS)’s flagging clothes division. Currently, it’s the turn of ex-Halfords boss Jill McDonald. While Food has prospered, Marks has struggled to rebuild a fashion business able to compete in a very competitive market place.

Investors are unconvinced, allowing the shares to halve in value over the past three years, most recently after new chairman Archie Norman implied in November that the current turnaround was happening too slowly.

Lack of visibility and confidence in future earnings and cashflows is a major reason for the share price underperformance, reckon analysts at Barclays. They also fear these full-year results may reveal higher capital expenditure, cash exceptional charges and further price cuts.

“However, we tend to think that the share price has already discounted some quite negative scenarios and we consider it unlikely that the company will paint such a negative picture that the company will not be able to comfortably afford to maintain the dividend (6.5% yield),” they say, which partly explains the ‘overweight’ rating and 370p price target.

Away from the outlook, pre-tax profit is tipped to come in a bit lighter than consensus at £563 million. Clothing & Home like-for-like sales likely fell 3% in the fourth quarter, but rose 0.5% at the Food business, both divisions benefiting from the early Easter.

Source: interactive investor             Past performance is not a guide to future performance

Trading Statements

Easyhotel, Stride Gaming, IXICO, Britvic, Vedanta Resources, Assura Group, Severn Trent, Marks & Spencer, Great Portland Estates, Dairy Crest, HICL Infrastructure, Babcock International

AGM/EGM

Lamprell, Nahl Group, LCG-Longbow, MTI Wireless Edge, Medica Group, Allied Minds, Xeros Technology, Bovis Homes, Smart Metering Systems, Optibiotix Health, Boku Inc, Restaurant Group, Gamma Communications, Cabot Energy

Thursday 24 May

Trading statements

Daily Mail & General Trust, Shoe Zone, Paragon Banking, TalkTalk Telecom, Wizz Air, United Utilities, Caledonia Investments, Tate & Lyle, Electrocomponents, PayPoint, NewRiver Retail, Renewi, Mediclinic International, Helical Bar, Kingfisher, Intertek, Inchcape, Go-Ahead Group

AGM/EGM

Spire Healthcare Group, Tissue Regenix Group, Sportech, Instem, Headlam Group, Huntsworth, Gail India, EnQuest, DP Eurasia, Inchcape, Ibstock, Manx Financial Group, Lloyds Banking Group, Strix Group, Jersey Oil And Gas

Friday 25 May

Trading statements

Pennon, SSE, Volvere, Spectris

AGM/EGM

Air China, Keywords Studios, Etalon Group

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation, and is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company’s or index name highlighted in the article.

Source.