Thursday preview: SABMiller, Mothercare, National Grid

19th May 2010 17:35

South African brewer SABMiller is probably looking forward to the FIFA World Cup in South Africa more than most companies but until then it is football crazy Latin America that is expected to drive growth in the company's profits.Charles Stanley thinks the Latin American region will report a 19% increase in operating profit to $1,400m in the 12 months to 31 March from a year earlier. For the group as a whole the broker is predicting profit before tax of $3,885m, up from $3,405m the year before. Earnings before interest, tax and amortisation is tipped to rise to $4,425m from $4,129m on revenue of $26,100m, up from $25,302m."An update is expected to be provided on the 'business capability plan', a cost cutting programme announced with interim results in November 2009. It is targeting $300m of annual savings by 2014, driven by the establishment of a global procurement centre in Zug, Switzerland, and outsourcing of various functions," suggests Charles Stanley analyst Sam Hart. Kids' clothes and equipment chain Mothercare lines up final numbers for Thursday, which should reveal international sales driving further acceleration in profits. KBC is looking for a pre-tax profit of £38.4m, down £2m from original forecasts to include a non-cash charge for share based payments. It recommends buying on current weakness.Numis Securities, meanwhile, is looking for pre-tax profits of £39.8m from Mothercare. The broker will be looking for "reassurance that the soft fourth quarter out-turn in the UK has firmed up."Gas and electricity pipeline grid operator National Grid is few people's idea of a glamour stock but in the current volatile environment its preliminary results for the year to 31 March may get a bit more attention than usual.Charles Stanley is looking for "solid" results, with pre-tax profit of £1,991m, up from £1,770m the year before. The broker predicts the dividend will be hiked to 38.5p from 35.6p last year. "In the UK, NG [National Grid] will not benefit financially from the colder than normal weather as revenues are decoupled from volumes. In the US, Electricity Distribution and Generation ... is expected to deliver an improved performance on the back of relatively normal weather (compared to severe ice storms last year), despite some anticipated decline in customer volumes," Charles Stanley analyst Tina Cook predicts.Cook is also expecting an update on funding for NG's heavy capital expenditure programme.Thursday May 20INTERIMSFuture, Grainger, GW Pharmaceuticals, Intec Telecom Systems, Marston's, Optos, Renovo GroupQUARTERLY PAYMENT DATECaterpillarINTERNATIONAL ECONOMIC ANNOUNCEMENTSBoJ Intrest Rates (JPN) (00:00)Convenience Store Sales (JPN)Consumer Confidence Indicator (EU) (10:00)Continuing Claims (US) (13:30)Initial Jobless Claims (US) (13:30)Leading Indicators (US) (15:00)Philadelphia Fed Index (US) (15:00)Producer Price Index(GER) (07:00)Industrial New Orders (EC) (10:00)FINALSBooker Group, FFastFill, Great Portland Estates, Mothercare, National Grid, SABMiller, Shanks GroupIMSSCairn EnergyAGMSBaronsmead VCT 4, Cairn Energy, Candover Investments, Cape, Core VCT IV, Core VCT V, Corin Group, Energetix, H & T Group, Hydro International, IS Solutions, Jupiter Dividend & Growth Trust, Just Car Clinics Group, KazakhGold Group GDR (Reg S), Kenmare Resources, Lombard Medical Technologies, Marsh and Mclennan, Moss Bros, Nichols, Omega Insurance Holdings, Petropavlovsk, Portmeirion, Premier Foods, Sagentia Group, Staffline Group, Total Produce, Tribal Group, Vphase, Wolfson MicroelectronicsUK ECONOMIC ANNOUNCEMENTSInternet Retail Sales (09:30)Retail Sales (09:30)FINAL DIVIDEND PAYMENT DATEChesnara, Edinburgh UK Tracker Trust, Fyffes, Tullett Prebon, Vitec Group, ZotefoamsQ1MHP S.A. GDR (Reg S)