Wednesday preview: Centrica, BATs, Compass

27th Jul 2010 15:58

It's another busy day for results on Wednesday with Footsie stalwarts BG Group, BATs, Compass, Invensys, Rexam, Rolls-Royce, Sage and Centrica all fighting for attention.Centrica, which trades under the British Gas and Scottish Gas brands, is expected to have benefitted from a chilly winter in the UK. The residential business will have done well from what Citigroup called "a benign pricing environment".The broker is predicting operating profits from British Gas of £583m at the interim stage, up from £299m last year, while the business division is tipped to double profits to £132m.Catering giant Compass Group will release sales details for the third quarter of its financial year. Nomura predicts third quarter organic revenue growth of +4.3% year on year (you) versus -1.7% in the first quarter and +2.5% in the second quarter."Our organic revenue growth forecast is split; 2% net contract wins and 2.3% LFL [like for like] sales. With our pricing assumption of +1.5% and defensive volume forecast of +1.0%, constant versus prior periods, we expect cyclical volume to post its first positive number since Q109 [first quarter 2009]," Nomura said.Tobacco firm BATs should report an increase in interim pre-tax profits, with Charles Stanley pencilling in a figure of £2,460m, up from £2,176m in the first half of 2009. The broker is hoping for a boost to the dividend from 27.9p last year to 33.1p at the interim stage this time."The market is likely to focus on the outlook for pricing and volume stabilisation in the second half (rival IMT [Imperial Tobaccco] reported deterioration in volumes in Q3 [third quarter], PMI [Philip Morris] raised outlook for the full year). BAT's outlook statement at the last year end was cautiously optimistic," Charles Stanley suggests. The GfK/NOP consumer confidence index is out overnight and should show a fall for the fifth month in a row, with July's level set to dip to its lowest level since August 2009, according to Dr. Howard Archer at forecasting unit I H S Global Insight. "This is expected to be primarily due to increased consumer concern over both personal situations and the general economic outlook following the announcement of extra fiscal tightening in the June emergency budget," Dr. Archer said.I H S is predicting the July reading will be -21% from -19% in June. INTERIMSBodycote, Brit Insurance Holdings NV, British American Tobacco, Centrica, CSR, Jarvis Securities, RAB Capital, Rathbone Brothers, Rexam, Rolls-Royce Group, St James's Place, Tarsus Group, Telekomunikacja Polska S.A. GDR (Reg S), Virgin Media Inc.INTERIM EX-DIVIDEND DATEAberforth Geared Capital & Income Trust Income Shares, British Portfolio Trust, Brunner Inv Trust, Charter European Trust, Development Securities, Fenner, Ludgate Environmental Fund, Matrix European Real Estate Investment Trust Ltd., Microgen, Throgmorton TrustQUARTERLY EX-DIVIDEND DATECity of London Inv Trust, Equity Partnership Income Shares, GlaxoSmithKline, M&G High Income & Growth Units, M&G High Income Inv Trust Income SharesINTERNATIONAL ECONOMIC ANNOUNCEMENTSBeige Book Fed Survey (US) (19:00)Consumer Price Index (GER) (07:00)Crude Oil Inventories (US) (15:30)Durable Goods Orders (US) (13:30)MBA Mortgage Applications (US) (12:00)Small Business Confidence (JPN)Q2CSR, Virgin Media Inc.GMSMidas Capital, Pure WaferFINALSRenishawANNUAL REPORTPark Group, SpiceIMSSCompass Group, easyJet, Invensys, Sage GroupAGMSAmiad Filtration Systems, Aurora Inv Trust, Charles Stanley, Cropper (James), Endace, Geopark, Globus Maritime, Invensys, Investment Company (The), JJB Sports, Jupiter Green Inv Trust, Kenetics, Kewill, Melorio, Norcros, Polar Cap Technology Trust, Scapa Group, Umeco, Vedanta Resources, Victoria, Walker GreenbankTRADING ANNOUNCEMENTSCarphone Warehouse Group, PlaytechFINAL DIVIDEND PAYMENT DATEBraemar Shipping Services, Fuller Smith and Turner, Templeton Emerging Markets Inv TrustFINAL EX-DIVIDEND DATEHeath (Samuel) & Sons, Investec, Northern Foods, Scottish & Southern Energy, TanjongQ1Yell Group