Rolls-Royce and Bellway updates round off the week

December 11, 2020

205

The end of the week will be marked by trading updates from engine maker Rolls-Royce and housebuilder Bellway, although some investors may also be interested in interims from Polar Capital Technology Trust as well as full-year figures from Nexus Infrastructure.

The macro calendar, meanwhile, is looking a little sparse. However, US PPI and Michigan consumer sentiment data from across the Atlantic may provide interest for some.

Rolls-Royce looks to restart the engines following refinancing

The end of the week will bring a trading update from aircraft engine maker Rolls-Royce Holdings PLC (LON:RR.), a few weeks after the company completed a mammoth £2bn rights issue to help its balance sheet cope with the effects of the coronavirus pandemic.

With the company’s bank balance now boosted, investors will likely be hoping for any details on how the company plans to use its new cash, as well as its outlook for the aviation markets following recent news of coronavirus vaccines, which could help pull the air travel sector and its engine customers out of their slump.

There may also be interest in whether the company could be in place to benefit from the recent multi-billion defence spending package unveiled by the UK government, as well as any updates on the company’s efforts to secure £217mln of government funding to build 16 mini nuclear power stations as part of a consortium of firms.

Bellway rings out the week

Bellway PLC (LON:BWY) will provide an update on the period since its July year-end, having said with its final results in October that the new financial year had got off to an “exceptionally strong” start.

With house reservations up by 30.6% to 239 per week in the nine weeks since August 1, 2020, the FTSE 250-listed builder said sales completions should total around 9,000 for the full year.

With orders at a record £1.87bn, directors were buoyed enough to resume dividend payments after their coronavirus-inspired hiatus, with a final payment at 50p down 50% on the prior year but with a pledge to increase this further as earnings recover.

Bellway had earlier in the year pointed to “incremental costs” arising from COVID-19 hitting productivity and increasing health and safety requirements.