Wednesday preview: Prudential, Lookers

8th Mar 2011 16:50

After well received results from Aviva this week it will be the turn of fellow insurerPrudential to make a splash on Wednesday.Results from the Pru could make the market wonder at the wisdom of blocking management's "bet the farm" purchase of the Asian business of fallen US insurance giant AIG, as Asia is likely to be the main engine of growth for the insurer. In contrast, UK sales growth has been insipid but there was some improvement in the new business margin in the third quarter and analysts will be keen to see whether this has continued.Charles Stanley says: "Most importantly, given that it has accounted for nearly half of new business profit in recent results, is that the Asian growth story remains intact. This growth story is underlined by the Pru's recent comment that 'South East Asia, with its high rates of GDP growth, saving habits and low penetration of insurance products, remains the most attractive long-term opportunity in our industry and the primary focus for our growth and investment'." Hot in the tyre treads of Inchcape's full year results on Tuesday come figures from fellow car dealer Lookers on Wednesday."We believe the new car market has fared better than some may have anticipated so far this year, with Lookers well placed to outperform," Panmure Gordon said in a note published before Inchcape's results were announced.The broker is forecasting revenues of £1,805m, up 3.2% on last year. It goes for underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of £29.4m, reflecting a 10 basis points year on year improvement in operating margin to 2.7%.The broker has pencilled in a figure of £33.5m for adjusted profit before tax, compared to market consensus of £35.2m. It tips earnings per share (EPS) of 6.0p, versus market consensus of 6.39p and a final dividend of 1.8p."A year of strong cash generation is also expected, and we are forecasting net debt to fall from £78.8m to £53.6m, implying gearing levels of just 31% and net debt/EBITDA below 1x," Panmure Gordon said.Peel Hunt, meanwhile, said the firm is all set for 2011. "Lookers' point of difference remains the benefit of the group's independent Parts Division, which represents over 25% of group EBIT and enjoys attractive organic growth from range expansion, new product introductions and increasing underlying demand for its products and next day service credentials," the broker said. "While SMMT [Society of Motor Manufacturers and Traders] expects new car registrations to decline by 5% in 2011, still reflecting the year on year unwinding of the scrappage scheme, we see Lookers outperforming the market once again. While the consumer environment remains tough, we expect early trading in 2011 to have held up well," Peel Hunt predicted. INTERIMSEncore OilINTERIM DIVIDEND PAYMENT DATEStagecoach GroupINTERIM EX-DIVIDEND DATEAlumasc Group, Ashmore Group, Asian Citrus Holding, BHP Billiton, Centaur Media, Dechra Pharmaceuticals, Dunelm Group, Electric & General Inv Trust, Gartmore Irish Growth Fund, Hays, Impala Platinum Holdings Ltd., Medusa Mining Ltd. (DI), Renishaw, Ricardo, Sportingbet, Wilmington GroupQUARTERLY EX-DIVIDEND DATEBritish Assets TrustINTERNATIONAL ECONOMIC ANNOUNCEMENTSNominal GDP (JPN)CGPI (JPN)Industrial Production (GER) (11:00)Wholesales Inventories (US) (15:00)FINALSAfrican Eagle Resources, Alkane Energy, Ark Therapeutics Group, Avengardco Investments Public Ltd.GDR, Bank Pekao SA GDS (Reg S), BATM Advanced Communications Ltd., Costain Group, F&C Inv Trust, Hill & Smith Holdings, Hutchison China Meditech Ltd., Interserve, Johnston Press, Lookers, Melrose, Prudential, Restaurant Group, SQS Software Quality Systems AG, Stadium Group, Telecom Egypt SAE GDS (Regs), Tullow Oil, Yule Catto & CoANNUAL REPORTMeggittEGMSBATM Advanced Communications Ltd.AGMSTravelzestUK ECONOMIC ANNOUNCEMENTSBRC Shop Price Index (00:01)Trade Balance (10:30)FINAL EX-DIVIDEND DATEAvesco Group, Avon Rubber, Baronsmead VCT 3, Baronsmead VCT 4, Brewin Dolphin Holdings, British American Tobacco, CRH, Domino Printing Sciences, Goldenport Holdings Inc., Hammerson, Lavendon Group, Meggitt, New World Resources NV (DI), Octopus Titan VCT 1, Octopus Titan VCT 2, Safestore Holdings, Scottish American Inv Company, Serco Group, Spirent Communications, St. Modwen Properties, Standard Chartered