Thursday preview: Capita, Autonomy, UK retail sales

21st Jul 2010 17:21

Charles Stanley expects outsourcing giant Capita's interim results on Thursday to show only modest organic turnover growth due to a slowdown in activity in the second half of 2009. It is looking for pre-tax profits of £155m. Capita may also give an update on its impression of the new government's deficit-slashing plans. 'For Capita, there will be new outsourcing opportunities though some existing projects may come under some pressure to improve purchasing,' says Charles Stanley. Tuesday's results from Enterprise Inns should provide something of a read across for fellow pub operator Mitchells & Butlers, which brings out an interim management statement on Wednesday. As has been the case for the other pub groups, the company is likely to have enjoyed the FIFA World Cup somewhat more than England fans though the group has a higher proportion of restaurants disguised as pubs than its peers, so the boost from the footie might not be so noticeable.Software leviathan Autonomy brings out interim results just two days after Panmure Gordon turned more cautious on the shares. The broker is expecting the data search software firm to report figures that are merely in line with market expectations, "and while it will talk through its (many) drivers for earnings upgrades shares, following the usual pattern, shares are likely to be hit on the day," suggests investment analyst George O'Connor. The broker changed its rating on the stock from "buy" to "hold".KBC Peel Hunt was another suggesting that the shares could take a battering from a market that has become used to the company beating expectations. The broker reckons sales and earnings per share are likely to be in line with consensus at $220m and 29c, implying zero underlying sales growth and less than KBC's own forecasts. It also worries that large banking deals - those above $15m - which it believes flattered 2008 and 2009 results, are drying up. "Autonomy announced four of these deals in 2008 and another four, somewhat smaller, deals in 2009. So far in 2010, we have seen just one," KBC points out.Panmure Gordon is not quite that pessimistic and suggests that "results will give further insight into the success of the new SPE product - itself expected to lead to small upgrades to 2011E estimates."The broker is forecasting xecond quarter sales of $222.6m and earnings before interest, tax, depreciation and amortisation of $119.25m. Earnings per share are forecast to be 30 cents.UK retail sales volumes (including fuel) for June are tipped to have risen 0.5% after rising 0.6% in May. The year on year rise is expected to narrow to 1.1% from 2.2% the month before.The FIFA World Cup and the hot weather should have created a favourable climate for UK retailers during the month which may have allowed consumers to overcome concerns about the worsening employment situation. INTERIMS Capita Group, Holders Technology, International Personal Finance, Lilly(Eli), Microgen, Uniq INTERIM DIVIDEND PAYMENT DATE Edinburgh Worldwide Inv Trust INTERNATIONAL ECONOMIC ANNOUNCEMENTS Business Confidence Indicator (FRA) (07:45)Production Outlook Indicator (FRA) (07:45)Consumer Confidence Indicator (FRA) (07:45) PMI Manufacturing (FRA) (08:50)PMI Services (FRA) (08:50)PMI Manufacturing (GER) (08:30)PMI Services (GER) (08:30)PMI Manufacturing (EU) (08:00)PMI Services (EU) (08:00)PMI Composite (EU) (08:00)Consumer Confidence Indicator (EU) (10:00) Continuing Claims (US) (13:30) Existing Home Sales (US) (15:00) Industrial New Orders (EU) (10:00) Initial Jobless Claims (US) (13:30) Leading Indicators (US) (15:00) Q2 Autonomy, Lilly(Eli) GMS Thor Mining FINALS Siteserv, Sports Direct International ANNUAL REPORT Imagination Technologies IMSS De La Rue, Great Portland Estates, Imperial Tobacco Group, Mitchells & Butlers, Petropavlovsk EGMS Northbridge Industrial Services AGMS Abbeycrest, ACP Capital, ACP Mezzanine Ltd., BT Group, Clarity Commerce Solutions, CML Microsystems, Coastal Energy Company (DI), De La Rue, Dee Valley Group, GB Group, Land Securities Group, Mavinwood, Mckay Secs., Personal Assets Trust, SABMiller, Scottish & Southern Energy, Shanks Group, SSL International, Tate & Lyle, Tinci Holdings, Vertu Motors, Zhaikmunai GDR (Reg S) TRADING ANNOUNCEMENTS Kingfisher, SABMiller UK ECONOMIC ANNOUNCEMENTS Retail Sales (09:30) FINAL DIVIDEND PAYMENT DATE Brulines, DCC, Hamworthy, Wynnstay Properties