Tuesday preview: McBride, Ashtead

5th Sep 2011 16:53

During the credit crunch when the newspapers were full of stories of shoppers trading down, McBride, the company that provides a lot of 'own brand' goods to retailers, had a spell as a stock market darling, but things over the last year have been tough for the company, with rising costs and a tough retail environment.Market expectations are for full-year profits before tax to fall to £23.13m on sales down to £807m from £812m last year. The full-year dividend is tipped to be trimmed to 6.73p from 6.80p, according to the median forecast of six brokers.Panmure Gordon will be hoping for an update on the expected level of input cost inflation in the current financial year, "and any further progress that the company has made in recovering these higher costs from retailers."Plant hire group Ashtead is set to release good first quarter (Man - July) figures, according to Singer Capital Markets, based on results from its closest competitors. "On 19 July, United Rentals reported Q2 [second quarter] revenue up 16.4%, reflecting a YoY [year-on-year] increase in rates of 6.1% and a 13.8% increase in equipment on rent. It also reported a 3.6% increase in time utilisation and confirmed it expected the FY [full-year] time utilisation to increase by 2.5%," Singer noted. "The EBITDA [earnings before interest, tax, depreciation and amortisation] margin increased 3% to 35.1%. Q2 EPS [earnings per share] increased 74% to 38 cents. RSC reported Q2 results on 21 July. It reported rental revenue growth of 22.0%, rates up 6.3% and a 15.2% increase in the volume of equipment on hire. Utilisation increased 4% to 68%. Its EBITDA margin increased from 30.6% to 36.6%. Considering these results cover two months of the Q1 period for which Ashtead is about to report, its seems likely that Ashtead's Q1 results will be positive," Singer continued."However, considering that the recovery in the US economy appears to be slowing, we have taken the opportunity to reassess our assumptions and have reduced our profit before tax forecast for 2012 by 10.3%. Despite this reduction, our forecasts remain at the top of the range and we retain a Buy rating," the broker said.INTERIMSHavelock Europa, Hydro International, Johnson Service Group, Lupus Capital, SQS Software Quality Systems AG, Total ProduceINTERNATIONAL ECONOMIC ANNOUNCEMENTSFactory Orders (GER) (11:00)GDP (1st release) (EU) (10:00)ISM Non-Manufacturing (US) (15:00)PMI Construction (GER) (08:55)GMSBlue Planet Financials Growth & Income Inv Trust No.1, Blue Planet Financials Growth & Income Inv Trust No.10, Blue Planet Financials Growth & Income Inv Trust No.2, Blue Planet Financials Growth & Income Inv Trust No.3, Blue Planet Financials Growth & Income Inv Trust No.4, Blue Planet Financials Growth & Income Inv Trust No.5, Blue Planet Financials Growth & Income Inv Trust No.6, Blue Planet Financials Growth & Income Inv Trust No.7, Blue Planet Financials Growth & Income Inv Trust No.8, Blue Planet Financials Growth & Income Inv Trust No.9, Blue Planet Financials Growth & Income Inv Trust Units, Zoo Digital GroupFINALSAllocate Software, Alumasc Group, City of London Investment Group, Dechra Pharmaceuticals, Genus, Interior Services Group, McbrideAGMSACM Shipping Group, African Consolidated Resources, Anglesey Mining, Ashtead Group, Daisy Group, DS Smith, Greene King, Invista Foundation Property Trust Ltd., Rockhopper Exploration, Terra Catalyst Fund (DI)UK ECONOMIC ANNOUNCEMENTSBRC Sales Monitor (00:01)New Car Registrations (09:30)FINAL DIVIDEND PAYMENT DATESynergy HealthQ1Ashtead Group--jh