Tuesday preview: Persimmon, CRH and GKN report full-year results

24th Feb 2014 14:51

Persimmon, CRH and GKN will be among the FTSE 350 companies out with annual results on Tuesday.Housebuilder Persimmon indicated in its January interims that it will post 16% volume growth, a 4% increase in the average sales price. Numis predicts earnings before interest and tax (EBIT) margins will rise 270 basis points to 15.7% amid accelerating house prices in the market supported by government schemes such as Help to Buy."These factors together are forecast to lead to pre-tax profit growth of 48.3% - which is expected to be one of the highest rates of growth in the sector," the broker said. "However, whilst we forecast strong volume growth in 2014 (supported by a strong forward order book) we suspect that the flat outlet profile will mean that growth becomes sub-sector in the medium term."The analyst, which recommended a 'hold' rating, anticipates net cash of £200m at the end of 2013. Full-year results of building materials supplier CRH, on the other hand, are expected to reflect poor weather conditions in the UK and Europe. Investors are likely to focus on Albert Manifold's first presentation as Chief Executive and a portfolio review of the company. Automotive and aerospace engineer GKN is projected to post pre-tax annual profit of £508m, up from £467m previously, according to Numis which issued a 'buy' rating. "In Aerospace the performance of Volvo, acquired in 2012, will be closely watched (Q3 margins hit a very commendable 14.7%) as will the level of pain which the defence side has experienced (30% of the Aerospace division)," Numis said. Tuesday February 25thINTERIMSAshmore Group, Dechra Pharmaceuticals, Netcall, Wilmington GroupINTERIM DIVIDEND PAYMENT DATEGCP Infrastructure Investments Ltd, IG Group HoldingsINTERNATIONAL ECONOMIC ANNOUNCEMENTSConsumer Confidence (US) (15:00)House Price Index (US) (15:00)FINALSAeci 5 1/2% Prf, BATM Advanced Communications Ltd., Capital & Counties Properties , CRH, Croda International, GKN, Ladbrokes, NMC Health, Persimmon, Provident Financial, St James's PlaceEGMSJSC KazMunaiGaz Exploration Production GDR (Reg S)AGMS2 ergo Group, Servoca, Sorbic InternationalUK ECONOMIC ANNOUNCEMENTSBBA Mortgage Lending Figures (09:30)CBI Distributive Trades Surveys (11:00)RD