Hot weather to prove thirsty work and give pubs a boost

The City has good reason to focus on the pub this week, with numbers from JD Wetherspoon, Enterprise Inns and Mitchells &amp; Butlers all likely to be high on the agenda.<br /><br />The recent hot weather should have provided some welcome business for the hard-hit pubcos. But investors will also look for firms to further defend &ldquo;tied-pubs&rdquo; arrangements &ndash; the exclusive purchasing obligations between pubcos and tenants &ndash; which Parliament has requested that the Competition <br />Commission investigate.<br /><br />But before the market bangs on the doors of the pubs, they will be turning their attention to another firm tipped by analysts to be doing well out of the recent BBQ weather, sausage producer <strong>Cranswick</strong>. <br /><br />Also on Monday, <strong>Spice</strong> and <strong>Infoserve</strong> will report their final results, while Tuesday will see trading statements from <strong>CVS, Headlam</strong> and <strong>Dunelm</strong>.<br /><br /><strong>JD Wetherspoon</strong> will kick-off proceedings in its sector on Wednesday with its fourth quarter pre-close trading statement. Analysts at UBS expect the company to say that like-for-like sales are up 0.5 per cent for the 10 weeks to 5 July, and retain a &ldquo;sell&rdquo; rating on the stock based on valuation, thir concern over the refinancing of the company&rsquo;s bank debt, and a belief that capital expenditure is currently unsustainably low. <br /><br />The <strong>London Stock Exchange</strong> will issue its first quarter interim management statement &ndash; its first since chief executive Xavier Rolet took over &ndash; and is expected to report that a continuation of lower values traded and lower revenues from IPOs have led to a decline in profit.<br /><br />Other company news on Wednesday will include updates from <strong>Land Securities, Blacks Leisure, Burberry </strong>and<strong> Northern Foods</strong>.<br /><br />Numis analysts expect <strong>Mitchells &amp; Butlers</strong>&rsquo; third quarter management statement, due on Thursday, to indicate that like-for-like sales have remained positive and that trading has benefited from the better weather. However, with no positive earnings momentum and against an net asset value of 277p per share, the broker does not see a great upside to the stock.<br /><br />Also on Thursday, <strong>Enterprise Inns</strong> will issue its trading statement., with many investors hoping for an update on the group&rsquo;s debt reduction.<br /><br />Mike Ashley&rsquo;s <strong>Sports Direct International</strong>&nbsp; will finish the week up with its final results on Friday, while <strong>Cable &amp; Wireless</strong> is likely to give an idea of its first quarter trading along with its general meeting.