Tuesday preview: Genus, Dechra, Greene King

3rd Sep 2012 16:34

Tuesday has a bit of an agricultural feel to it, with animal genetics company Genus and veterinary health-care company Dechra Pharmaceuticals set to update the market. Peel Hunt says emerging markets growth should be offsetting higher feed prices at Genus. It is forecasting a 15% improvement in profits, with strong growth across a number of emerging markets. The key issue currently is the rise in feed prices, Peel Hunt believes. "This will have a direct impact on Genus's feed costs of around £1m, but it will also affect its customers. Some customers may well struggle in the short term, but generally higher feed prices are good news for Genus as it accelerates the trend to industrialisation of the industry and reinforces the benefits of genetics in improving feed conversion," the broker predicts. "We expect to hear more about plans in China, particularly with the announcement of the major JV [joint venture] with Besun, which will deliver genetics to 10m slaughter pigs when in full operation," the broker added. As for Dechra, the market is expecting profit before tax of £31.1m on revenue of £420.2m. Earnings per share are tipped to rise 19% to 37.03p, paving the way for the full-year dividend to be upped to around 12.16p from 10.97p last year.US health-care software developer Craneware issued a profit warning in July which does not seem to have done the share price any long term harm, possibly because the group said that the lowering of earnings guidance was because of deal slippage. Analysts will be looking to see if there has been any more signs since then of customers delaying putting pen to paper on new deals. Abbot ale brewer Greene King issues an interim management statement, and Panmure Gordon thinks the pubs group will have made a robust start to the new financial year, despite the wettest summer since 1912 in the UK."We forecast 3.5% LFL [like-for-like] sales growth in managed pubs and 2.5% growth in average EBITDA [earnings before interest, tax, depreciation and amortisation] in its tenanted pubs," the broker revealed. "Core brand brewing volumes should be broadly flat," Panmure Gordon added. Sticking with the boozy theme, pubs group Spirit Pub Company issues a pre-close interim management statement and Panmure Gordon expects the group to reiterate it is comfortable with market expectations of full-year profit before tax of £51.5m.Like Greene King, the group will not have enjoyed the recent weather, but the broker argues "the group has strong momentum in managed pubs and a plan to alleviate the sharp decline in income from leased pubs.""Consensus forecasts have edged down over the past few months reflecting difficult trading, mainly due to the wettest summer since 1912. However trading should have been relatively robust in Q4 [fourth quarter] given the Diamond Jubilee, Euro 2012 and the Olympics. We forecast 2.0% LFL sales growth in managed pubs for Q4," Panmure Gordon said.INTERIMSAbbey Protection, Hydro International, Johnson Service Group, Lupus Capital, Quindell Portfolio, Stadium Group, Ubisense Group PlcINTERIM DIVIDEND PAYMENT DATEInchcape, Man Group, RexamINTERNATIONAL ECONOMIC ANNOUNCEMENTSConstruction Spending (US) (15:00)ISM Prices Paid (US) (15:00)Producer Price Index (EU) (10:00)FINALSAlumasc Group, Craneware, Dechra Pharmaceuticals, Genus, Mcbride, MonitiseAGMSAshtead Group, Essar Energy , Greene King, Midas Income & Growth Trust, Polar Capital Technology Trust, Smith (DS), Tricorn GroupUK ECONOMIC ANNOUNCEMENTSBRC Sales Monitor (00:01)PMI Construction (09:30)IMSSGreene King, Spirit PubJH