Equity Briefing: Berkeley Group, Joules Group and IHS Markit

Housebuilder Berkeley Group is due to publish full-year results this morning while clothing and homeware designer Joules Group is set to release a pre-close update. Information specialist IHS Markit is due to report second-quarter results later today.

Stocks (2)

Berkeley Group

Berkeley Group will report full-year results covering the 12 months to the end of April this morning.

Berkeley shares have significantly underperformed the wider market over the last year, trading up just 2% compared to the 26% rise in the FTSE 350 Construction & Building Materials index. That comes despite the housing sector remaining resilient during the pandemic, with construction allowed to continue during lockdown and the market buoyed by the Stamp Duty holiday.

This is in part because Berkeley has greater exposure to London at a time when people are leaving cities, which has caused a drop in reservations and bookings. Plus, there are concerns that its decision to delay some of its projects until the economy reopened could now cause problems as reports build that materials and labour are harder to get hold of and more expensive.

The housebuilder said in February that benchmark pretax profit should be largely in-line with the £503.7 million reported in the last financial year, but analysts are expecting Berkeley to surprise with a profit of £516.5 million. Still, that will be considerably lower than the £775.2 million booked in 2019.

Berkeley has committed to returning £280 million per year through dividends and buybacks and has done so since 2016.

Joules Group

Joules Group will release a pre-close trading update for the full-year to the end of May today.

The clothing and homewares company revealed in early May that revenue would come in higher than the £187 million expected by analysts and that pretax profit before exceptional items would beat the £4.1 million forecast.

That provides hope that revenue could still grow from the £190.8 million delivered in the previous year and any profit will be welcomed considering it booked a £2 million loss the year before.

It has proven resilient during the pandemic thanks to its online sales and results have also received a boost from the acquisition of homewares firm Garden Trading Co in February, while store sales have picked-up since being allowed to reopen in April.

The focus will be on the outlook now that things are starting to normalise and when Joules Group’s results can return to pre-pandemic levels.

IHS Markit

Later today, before US markets open, IHS Markit will release second-quarter results covering the three months to the end of May.

The company, which deals in providing critical information and data analytics, said it had made a positive start to the year when it released first-quarter results in March as it started to see a strong recovery in its end markets, enough so that it said full-year results would be at the upper end of its guidance ranges.

Analysts are expecting revenue to rise to $1.135 billion in the second quarter from $1.027 billion the year before. Adjusted Ebitda is expected to rise to $505.7 million from $454.0 million while adjusted EPS is forecast to increase to $0.8 from $0.69.

Notably, IHS Markit is currently in the process of merging with S&P Global under a $44 billion deal struck last year, which is expected to be completed before the end of 2021.

How to trade top stocks

You can trade a variety of stocks with City Index by following these four steps:

  1. Open a City Index account, or log-in if you’re already a customer.
  2. Search for the company you want to trade in our award-winning platform
  3. Choose your position and size, and your stop and limit levels
  4. Place the trade 

More from Equities


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.