Tuesday preview: PZ Cussons, Babcock, Playtech, GDP

24th Jan 2011 16:37

Consumer products group PZ Cussons, best known for its Imperial Leather brand of soap, will be going up against a tough set of comparatives when it issues interim results on Tuesday.Panmure Gordon is expecting the firm to deliver "relatively muted growth" of around 3% in earnings per share (EPS). It thinks trading in the company's Nigerian heartland strengthened towards the end of the reporting period but otherwise the Nigerian economy has not been firing on all cylinders."We forecast H1 EBITA [first half earnings before interest, tax and amortisation] growth of 1% from £44.9m to £45.3m, profit before tax growth of 2.2% to £45.7m, and 3.0% EPS growth to 6.94p. We expect the divisional trading pattern to show strong growth in Asia, Africa broadly flat, and European profits down against a very strong comparison last year," the broker said.The outlook statement will be closely watched, the broker said, though it will probably largely consist of the familiar "cautionary note for consumer goods companies at the moment."Online gaming software designer Playtech issues fourth quarter key performance indicators on Tuesday. The fourth quarter is usually a busy one for online gaming firms and recent updates from peers such as William hill and 32Red give every reason to suggest that Playtech will have some good figures to cheer shareholders."Quarter on quarter we are looking for around 9% revenue growth (pre William Hill Online) and, for the year as a whole, we are forecasting revenues of €141m, up 23% on the previous year (boosted by acquisitions)," predicts broker Peel Hunt.The broker is forecasting full year adjusted earnings before interest, tax, depreciation and amortisation of €102.6m, up from €92.9m in 2009, thanks largely to the boost from recent acquisitions Virtue Fusion and GTS."With regard to products, we expect bingo to have been solid while casino will reflect the absence of French revenues. Poker remains a tough market but the group's network is now up and running in France," Peel Hunt said. Panmure Gordon is going for €40.7m gross income for the fourth quarter, "which would imply c6% growth year on year (YOY) and broadly flat quarter on quarter (QOQ)." "In terms of Playtech's net revenue we forecast €34.9m, which represents c15% growth YOY and c7% growth QOQ led by casino, driven by a full quarter's contribution from Betfair," the broker added."We forecast full-year earnings before interest, tax, depreciation and amortisation of €101.2m compared to consensus estimates of c€102-103m, and expect the group to reiterate its comfort with market expectations," Panmure Gordon said.Financial software provider Misys said back in December it had a pretty flat first half, held back by delays to some large orders, now expected to close in the second half. Estimated revenue for the six months ending 30 November should be in the £160-162m range, compared to £160.6m a year ago, while adjusted operating profit is put at £20-23m versus £21.6m in 2009.Platinum miner Aquarius Platinum's interim management statement will cover the firm's second quarter. Panmure Gordon thinks the group knocked out 128,000 ounces of platinum group metals (PGMs) in the period, a 4% improvement on the first quarter's levels, "driven by an improvement from Marikana (following the fatality, potholing and recovery issues experienced in Q1) and the continued ramp-up of production at Everest."The broker expects quarter on quarter unit cash costs at the Marikana mine to reduce significantly following the production ramp-up and the closure of the high-cost number one shaft. Costs should also come down at Everest, but there might be a slight increase in cash costs at Kroondal "as new safety costs kick in". Panmure Gordon will be keeping an eagle-eye out for any update on the investigation into the Marikana fatalities and "any update on the issue of indigenisation in Zimbabwe."The November trading update from support services firm Babcock was upbeat, and there is nothing obvious to suggest that the situation has changed much in the meantime.Panmure Gordon will be expecting an update on the order book and also the group's financing position and its ability to generate cash. "Key divisional highlights may also be given, however, once again we see little in the way of change from November where organic growth was running at the 5% level. This is above average in the context of the rest of the Public Sector Outsourcing space," the broker notes. Preliminary data for fourth quarter UK Gross Domestic Product (GDP) is tipped to show a 0.5% incease on the previous quarter, and a 2.6% year on year gain. INTERIMSAshley House, City of London Investment Group, Games Workshop Group, Mattioli Woods, Misys, PZ Cussons, ZetarQUARTERLY PAYMENT DATEMolex Inc.INTERNATIONAL ECONOMIC ANNOUNCEMENTSBank of Japan MPC Target Rate (JPN)GfK Consumer Confidence Survery (GER) (07:00)Consumer Spending (FRA) (07:45)ABC Consumer Confidence (US) (15:00)Richmond Fed Manufacturing Index (15:00)FINALSPorvairIMSSBabcock International Group, Severn TrentEGMSTurk Ekonomi GDR Bankasi AS GDR (Reg S), XXI Century Investments Public Ltd.AGMSAlternative Networks, Next Fifteen Communications, Scottish Oriental Smaller Companies Trust, Siemens AG, Standard Life European Private Equity TrustUK ECONOMIC ANNOUNCEMENTSGDP (Preliminary) (09:30)Index of Services (09:30)Public Sector Finances (09:30)