Rolls Royce Holdings plc RR. is confident that Trent 7000 production and delivery volumes will increase significantly to meet customer commitment in 2019s. Growth in strong large engine flying hours reported in the first half has also continued into the second half of the year. Rolls is however forced to admit that the number of aircraft on the ground remains at a high level. It has had to placate its customers by sincerely regretting the disruption that this has caused them. Sad also to see the management of Rolls allowing a company which was once the pride of British engineering, to damage its own reputation to such an extent. A fall of 10% in large engine deliveries since the March estimate is expected for 2018 and blamed by management on early stage production ramp-up challenges on the new Trent 7000 engine – challenges which that self same management was incapable of dealing with – ramp up challenges indeed.
J Sainsbury plc SBRY and Asda Group Ltd will today seek a Judicial Review of the Competition and Markets Authority (CMA) Phase Two investigation into their proposed merger. The current timetable does not apparantly give the Parties sufficient time, with it being Xmas time. Nor does it take account of the fact that it has suddenly been realised that the real aim of the merger is to improve range, quality and customer service, while lowering prices and reducing the cost of living for millions of UK households. Well isn’t that kind of them, especially at Xmas. Its nothing to do with economics and challenging conditions on the high street. It is just that left on their own, the two companies and their customers would be in a bit of a mess.
British Am. Tobacco BATS updates that the business continues to perform well and is exceeding its high single figure constant currency adjusted diluted EPS growth target – you may pause here to take breath and try and analyse what that sentence actually means. Further good news, they would have you believe, is that full year adjusted EPS growth is expected to be impacted by a currency translation headwind, of around 6% for FY18, at current exchange rates. .Some big executives never learn – if you can only talk nonsense, shut up and let somebody else make a fool of themselves.
Marshalls plc MSLH expects to exceed full year expectations. Better second half revenue growth, will lead to revenue for the 11 months ended 30 November rising by 14 per cent.
Superdry plc SDRY Interim results for the 26 weeks to the 27 October reflected a difficult trading period forcing the company to intensify its comprehensive transformation programme. The blame is firmly placed on the weather which was too warm in November and so far, into December as well. Reliance on cold weather related products continues and a lack of innovation in some of its core categories is also blamed, as sales have remained under pressure. This has resulted in an adverse profit impact of around £11m in November and similar damage is expected in December if trading conditions (i.e. the weather) does not improve. Blame is also allocated to the changing shape of consumer behaviour in the peak trading period, the impact of wider economic and political uncertainty and, even before the wrong sort of weather has arrived, further uncertainty in terms of the outlook for it. Now there’s a management which knows how to keep itself warm and superdry.