The week ahead (27/09 - 01/10/10)
The corporate calendar is looking a little bald for the coming week with AGMs from Max Petroleum and Rockhopper likely to steal the spotlight from the retailers reporting results.
Building giant Wolseley comes to the fore on Monday with its full-year results. The group’s US business has been struggling in recent times with potential further trouble ahead with indicators in the UK and US housing markets pointing to further softening. However, last year’s capital raising has put its balance sheet on a sounder footing.
Analyst Tony Shepherd at Charles Stanley says: 'Recent updates from Wolseley have resulted in broker forecast upgrades. For example, when the group issued its interim management statement in May, it commented that group trading profit for the year to 31 July is expected to exceed the current analysts’ consensus forecast of £374m Our EBIT estimate for the year is £445 million and a pre-tax profit estimate of £331 million.'
Medical and engineering group Smiths offers up its full-year figures on Wednesday and should be on track to hit expectations despite challenging economic conditions piling the pressure on top line sales. Analyst Tina Cook at Charles Stanley has pencilled in revenues of £2.7 billion with pre-tax profits expected to have gained around 7 per cent to £396 million. She says full year dividend is likely to remain unchanged at 34p. 'Good progress on cost cutting and operational improvements have seen operating margins expand with more to come,' she says.
Media group Daily Mail updates the market on its recent progress after outlining a strong third quarter in its last statement in July. Underlying revenues shot up by 6 per centwith profits also ahead of management expectations.
Dominic Buch, analyst at Numis says: 'Due to a combination of improved business mix, deleveraging and currency benefits, we see scope for DMGT peak earnings to be very considerably higher than the 48p delivered in 2008.'
The recession has served takeaway pizza group Domino’s Pizza well as cash strapped consumers swap meals out for nights in. Although analysts are expecting like-for-like sales to have slowed from the first half, they are still anticipating a strong performance.
Numis analyst Douglas Jack says: 'Like-for-like sales should have slowed from H1’s 13.7 per cent increase due to tougher comparatives and the lapping of the Two for Tuesday promotion, but they should be materially ahead of our 3.5 per cent forecast assumption for H2 (our full year LFL sales assumption is 8.5 per cent).'
Meanwhile AIM-listed Max Petroleum will also be hosting its AGM on Monday, from which Interactive Investor will be reporting. The company suffered a blow earlier this week when it revealed that its latest well in Kazakhstan would be plugged and abandoned after failing to make a commercial discovery, so no doubt shareholders will be hoping for a brighter outlook from management.
Rockhopper then addresses its shareholders on Thursday where all eyes will be on the latest developments in its Falklands Islands drilling programme. On Friday it said its Sea Lion well potentially has double the amount of oil previously indicated.
On the economic front, the final reading of GDP growth for the second quarter is released in Tuesday although economists are expecting the figure to remained unchanged at 1.2 per cent. Those at Investec say: 'As ever, identifying any possible revisions at this stage of the GDP publication cycle is a tricky call. Industrial production is still estimated to have risen by 1 per cent (as it was in last month’s GDP release) and while it is always possible that the 0.7 per cent increase in services, or the 8.5 per cent surge in construction is revised, it is difficult to discern a direction.'
Later in the week the housing market shifts into focus with the official Bank of England data on mortgage borrowing and the Nationwide house price index on Wednesday. The credit conditions survey for the third quarter makes an appearance on Thursday to shed some light on the credit availability in the mortgage and corporate markets.
Monday 27 September
Results
(Final) Netcall, SpiriTel, System C Healthcare, Wolseley
(Interim) Alliance Trust, DDD Group, Healthcare Locums, Mount Engineering
AGMs
Aortech International, Ashley House, GEONG International, Max Petroleum, SDI Group
EGMs
DataCash Group
Dividend Payment Date
(Final) Tangent Communications
(Interim) African Barrick Gold, Fidessa, Maven Income and Growth, Stanley Gibbons
Tuesday 28 September
Results
(Finals) AI Claims Solutions, Albermarle & Bond, Close Brothers Group, Ludgate Environmental Fund, Ricardo Group
(Interims) AG Barr, Atlantic Global, Augean, Game Group, GVC Holdings, Japan Leisure Hotels, JBB Sports, Neovia Financial
Trading Update
Daily Mail and General Trust, Future, Man Group, Thomas Cook Group
AGMs
CBay Systems Holdings, ECO Animal Health Group, Jacques Vert, Minco, Private and Commercial, Sirius Exploration, Surface Transforms
EGMs
Mercator Gold, Quorum Oil and Gas Technology Fund
Dividend Payment Date
(Final) British Smaller Companies, Micro Focus International
(Interim) Hiscox
Wednesday 29 September
Results
(Finals) Indigo Vision, Smiths Group
(Interim) African Minerals Limites, Archial Group, Cluff Gold, Lees Foods, Michelmersh Brick Holdings, Moss Bros, Motivcom, North Bridge Industrial Services, Panmure Gordon & Co., smartfocus, Tyratech
Trading Update
Babcock International Group, Liontrust Asset Management, Topps Tiles
AGMs
600 Group, Amur Minerals, Angle, Arcontech Group, Bglobal, Cobra Holdings, Dhir India Investments, GTL Resources, Imaginatik, Marechale Capital, Misys, SocialGO, Strathdon Investments
Dividend Payment Group
(Final) Hargreaves Lansdown
(Interim) British American Tobacco, GKN, Glanbia, Greencore Group
Thursday 30 September
Results
(Finals) Eleco, Finsbury Food Group
(Interims) Gem Biofuels, HarbourVest Global Private Equity, Harvey Nash Group, Hasgrove, M&C Saatchi, Transense Technologies, XCounter
Trading Update
Compass Group, Dairy Crest Group
AGMs
Begbies Traynore Group, ContentFilm, Fiske, Gasol, Iimia Investment Trust, Lombard Risk Management, MediaZest, Network Technology, Oil & Gas Development, OPG Power Ventures, Redstone, Rockhopper Exploration, Sefton Resources, Triple Plate Junction, United Carpets
Dividend Payment Date
(Final) BHP Billiton, Cash Converters, Downing Absolute Income
(Interim) Albion Development, British Smaller Technology Companies, Eclectic Investment Company, Hardy Underwriting Bermuda, Japan Residential Investment Company, Low & Bonar, Reckitt Benckiser Group, Rights & Issues Inv Trust, SR Europe Inv Trust, Temple Bar Inv Trust, Timeweave
Friday 1 October
Results
(Final) Helphire Group
AGMs
Abbey
EGMs
Bank Audi, Invesco English & International Trust
Dividend Payment Date
(Final) Aquarius Platinum, Hartest Holdings, NCC Group, New Century, Park Group, VP
(Interim) Chaucer Holdings, Clarkson, Devro, FBD Holdings, Future, Greggs, Hammerson, InterContinental Hotels Group, Legal & General Group, Maintel Holdings, Meggitt, Melrose, North Midland Construction, Ocean Wilsons, Omega Insurance Holdings, Portmeirion, REA Holdings, Robinson, TUI Travel
(Quarterly) Schlumberger
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