Companies reporting this week

By THIS IS MONEY
Updated:

 

INVESTORS will have a further to chance to check on the retail sector next week, including the performances of troubled WH Smith and JJB Sports.

With WH Smith out of the bid spotlight, all eyes will be on chief executive Katie Swann's recovery plan when the group issues full-year results on Thursday.

Although the ailing retailer should have made some gains from cost savings, Charles Stanley believes it will still post a fall in pre-tax profits to £67m from £102m last time.

The rollercoaster ride for shares in JJB Sports is likely to have further to go following its profits warning in July and the update earlier this month that the sports retailer had received a takeover approach.

Half-year results on Wednesday will detail the current problems - expected to push profits down to £28.8m from £36.2m last year - although a return to more seasonal weather conditions may have helped with recent trading.

Analysts will be looking for an update on the takeover approach, which is known to have come from private equity house Cinven and likely to value the Wigan-based retailer at around £600m.

Body Shop International will be under pressure on Thursday to show that its troublesome UK business is improving after two years in which the domestic arm has been a drag on profits.

The company has performed better overseas with the Asia Pacific region seen as its driving force - a factor set to be lifted further by the recent decision to buy most of Body Shop's franchised business in Hong Kong.

Body Shop is also investing around £100m in stores and information technology, although the half-year results will come too early to reflect the impact of this three-year programme. Profits are set to be broadly similar to last year at £10m.

The performance of Poundstretcher spin-off Instore will be the main focus when retail group Brown & Jackson announces half-year figures on Friday - expected to show a narrowing of losses from last year's figure of £4.5m.

The first half is normally the quieter of the two for Brown, but will be given added spice by the progress report on Instore, the 45-strong chain that has more modern fittings and a greater focus on homeware than Poundstretcher.

Recruitment specialist Harvey Nash recently said trading had been 'robust' in the first half and that profits would be substantially ahead of expectations.

It is one of the first recruitment companies to indicate a recovery in Europe - along with Manpower and Vedior - and is benefiting from cost reductions, as well as weakened competition from rivals such as Adecco.

Broker Cazenove is expecting interim pre-tax profits of £1.5m before goodwill and exceptionals when Harvey Nash releases results on Monday, against £100,000 last time.

Gyms operator LA Fitness is expected to post full year pre-tax profits before exceptionals of £8.7m on Wednesday, against £7.2m, according to forecasts.

The company turned in record profits and turnover for the half year, despite a shift among value-conscious consumers to take short, sharp workouts, rather than treating visits to fitness clubs as leisurely days out.

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