Now that the banks reporting season is out of the way, a batch of numbers from other financial companies will come to the fore, with fund manager Standard Life Aberdeen PLC (LON:SLA) and investment platform group Hargreaves Lansdown PLC (LON:HL.) both due to report on Tuesday.
Half-year results from Standard Life Aberdeen will arrive roughly on the anniversary of the merger between Standard Life and Aberdeen Asset Management.
It will be a good time to take stock of how the combined business is progressing, especially considering Scottish Widows recently decided to withdraw £109bn of assets under SLA’s management due to competition concerns.
“When Aberdeen and Standard Life merged back in 2017, both were seeing significant outflows. Fast forward to the present day, and not much has changed,” George Salmon, equity strategist at Hargreaves Lansdown observed in a preview.
“In fact, we wouldn’t be surprised if outflows in the flagship GARS fund have increased. The fund has continued to deliver a poor investment performance, losing around 4%. A steady stream of outflows isn’t a great look for the group which is increasingly focused on asset management after the sale of its remaining life books,” Salmon said.
UBS has forecast half-year revenues of £1.61bn and gross operating profit of £536mln. It has pencilled in £491mln for the after-tax adjusted profit figure.
Platform show from Hargreaves Lansdown
Staying with financials, full-year results from blue-chip investment platform group Hargreaves Lansdown on Tuesday should also look strong.
In a preview, analysts at Deutsche Bank said they expect the FTSE 100-listed firm to report full-year assets under management of £92.2bn, up 16% year-on-year, with net fund flows of £7.8bn, a 9.9% net inflow rate.
They expect this increase in assets to result in a 15% year-on-year uplift in revenues but on a slightly diminished margin.
However, the analysts pointed out that despite the concerns around the FCA's investment platform market study, Hargreaves Lansdown has continued to re-rate positively and is one of the strongest performers of the stocks they cover in the year-to-date.
However, even though they expect the group’s full-year numbers to show a continuation of recent trends, they now see Hargreaves Lansdown’s shares as being fundamentally expensive at current levels.
Check out InterContinental Hotels
Among other blue-chip numbers due on Tuesday, half-year results from InterContinental Hotels Group PLC (LON:IHG) should make pleasant reading if it repeated has its strong first quarter performance in the second quarter.
The key metric for any hotel group is revenue per available room (RevPAR) and in the first quarter this was up 3.5% year-on-year, despite the timing of Easter, which had a negative impact in Europe and the Americas.
UBS expects RevPAR for the first half of 2018 will be up 3.6% on the first half of last year with the Americas broadly stable and China continuing to perform strongly. The story in EMEAA – Europe, Middle East, Asia and Africa – is likely to be a bit more subdued but on the recovery trail, UBS reckons.
The bank is forecasting revenues of US$2,057mln, up from US$1,964mln a year earlier, and underlying earnings (EBIT) of US$411mln, up from US$395mln.
Domino’s hoping for World Cup boost
The UK & Irish branch of the global pizza chain, Domino’s Pizza Group PLC (LON:DOM) will release its interim results on Tuesday.
The results will be the first since the departure of chief financial officer Rachel Osborne stood down in June.
The results are also likely to be watched for a speed up in like-for-like sales growth in the second quarter as severe weather caused by ‘the Beast from the East’ dragged on the group’s sales in the UK and Ireland.
Investors will also be looking for any signs of a sales boost from the hot weather and England’s better than expected performance in the world cup tournament, which contributed to a bumper first half for Domino’s Polish license holder DP Poland (LON:DPP).
Significant events expected on Tuesday August 7:
Finals: Hargreaves Lansdown PLC (LON:HL.)
Interims: InterContinental Hotels PLC (LON:IHG), Standard Life Aberdeen PLC (LON:SLA), Meggitt plc (LON:MGGT), Domino’s Pizza Group PLC (LON:DOM), Old Mutual Limited (LON:OML), Intertek Group PLC (LON:ITRK), Rotork PLC (LON:ROR), T Clarke PLC (LON:CTO), Verona Pharma PLC (LON:VRP), Zotefoams Plc (LON:ZTF)
Economic data: Halifax UK house prices; US JOLTS jobs; US consumer credit