Wednesday preview: Compass, UU, Johnson Matthey, GDP

24th Nov 2009 17:35

Contract caterer Compass Group is expected to show little or no like for like growth in revenue when it declares full year results on Wednesday, but pre-tax profit is still expected to show a healthy rise on the back of a strong improvement in margins and currency gains. Market consensus is for pre-tax profit of £767.6m, up from £566m last year, on sales of £13,378m, up from £11,440m a year earlier.Numis Securities is tipping a 15% growth in the dividend. Market expectations are for a full-year dividend of around 13.13p.Continuing the trickle of results from water companies, United Utilities will report interim figures that are certain to be overshadowed by Thursday's final determination on the 2010 - 2015 regulatory regime for the water companies from industry watchdog Ofwat.Earnings are expected to be steady, as price rises pushed through by the company are offset by lower usage from both industrial and residential consumers. Rising power costs and an increased incidence of bad debts may also constrain profits growth.Car catalyst provider Johnson Matthey has been hit by weak demand, which is not surprising given the state of the car industry. Broker Charles Stanley feels that Wednesday's interim results should 'confirm a low water mark for the business as they cover a period during which auto sales were weak (adversely impacting sales of automobile catalysts) and a sharp year on year fall in platinum group metal prices (PGM).'Soft demand in Europe and North America may be offset somewhat by increased car production in Asia, while the recent upsurge in PGM prices may also give the company cause to be optimistic.Shares in plant hire firm Speedy Hire were sharply lower the day before Wednesday's interim results. Last month the company said earnings are broadly in line with company expectations, following aggressive cost cutting, but whilst trading in recent months has begun to stabilise, risks to the group's revenue forecasts remain on the downside in the short term.Broker KBC Peel Hunt is predicting half year sales of £181m and earnings before interest, tax, depreciation and amortisation of £35m.Design and engineering consultancy group WS Atkins has been beset by fears over the company's exposure to Middle East markets and worries about public sector spending the other side of a general election. The firm has been cutting costs as fast as it can this year, shedding more than 1,500 jobs since March.Wednesday's interim results should give an insight to how the management sees next year unfolding. The market for its building design and water consultancty services is expected to remain tough but demand from energy companies should be picking up.Britain's position as the laggard of Europe comes up for review on Wednesday with revised figures for third quarter gross domestic product (GDP). The preliminary estimate of a 0.4% contraction in GDP shocked the market, and probably had Gordon Brown thumbing through the Yellow Pages to find a removal van for some time in May, assuming he has not already booked one.Though the dismal figures caught many economists on the hop, not many people are holding out hope of a major revision, with a slight trimming of the fall to 0.3% about the best we can hope for.INTERIMSAcal, GB Group, Johnson Matthey, Liontrust Asset Managament, London Stock Exchange Group, QinetiQ Group, Speedy Hire, Telecom Plus, United Utilities Group, WS AtkinsINTERIM DIVIDEND PAYMENT DATEAlbany Inv Trust, Charles TaylorINTERIM EX-DIVIDEND DATEAmec, Cranswick, F.T.S.- Formula Telecom Solutions, Hill and Smith, London & Stamford Property, Man Group, Mount Engineering, Next, Octopus Second AIM VCT, UBC Media Group, VT GroupQUARTERLY EX-DIVIDEND DATEM&G Equity Inv Trust Income SharesINTERNATIONAL ECONOMIC ANNOUNCEMENTSBoJ Interest Rates Minutes (JPN) (23:50)GfK Consumer Confidence (GER) (07:00)Durable Goods Orders (US) (13:30)FOMC Interest Rate Minutes (US) (19:00)Initial Jobless Claims (US) (13:30)MBA Mortgage Applications (US) (12:00)New Homes Sales (US) (15:00)Personal Consumption Expenditure (US) (13:30)Personal Income (US) (13:30)Personal Spending (US) (13:30)U. of Michigan Confidence (US) (15:00)FINALSCompass Group, Greencore Group, GW Pharmaceuticals, Superglass HoldingsEGMSHanson Westhouse HoldingsAGMSAberdeen Asian Smaller Companies Inv Trust, BlueBay Asset Management, Finsbury Food Group, Sabien Technology, Thor MiningUK ECONOMIC ANNOUNCEMENTSBalance of Payments (09:30)Gross Domestic Product (09:30)Private Consumption (09:30)Government Spending (09:30)Producer Price Index (09:30)FINAL DIVIDEND PAYMENT DATEStagecoach Theatre ArtsFINAL EX-DIVIDEND DATEA&J Mucklow, Advance UK Trust, Baronsmead VCT, Baronsmead VCT 2, Charteris, Diploma, Dunelm Group, Freshwater UK, Global MENA Financial Assets Ltd., ING Global Real Estate Securities, Invesco English & International Trust, JPMorgan Chinese Inv Trust, JPMorgan Elect Managed Growth Shares, Octopus Eclipse VCT 1, Octopus Eclipse VCT 3, Octopus Eclipse VCT 4, Renewable Energy Generation, Scottish American Inv Company, Ultimate Finance Group, Value Catalyst Fund Ltd. (The)QUARTERLY RESULTSQueen's Walk Investment Ltd., Sportingbet