The Week Ahead: Cutbacks hurting construction plans

 

Today

Building roads, railways and regenerating the UK is supposed to be an important part of getting the economy on track. Government has been trying to boost growth, but construction group Morgan Sindall has actually been hit by cutbacks from government in the shape of reducing the pipeline of affordable housing and some other infrastructure projects. Despite areas of its business remaining sluggish, Morgan’s half-year results are expected to be reasonable today. Investors will be keen to hear what impact new finance director Steve Crummett will have made. Oriel Securities scribblers think Mr Crummett’s appointment was a “positive move” but point out that with a new group FD, “one can never rule out a move to a different approach to recognising revenues”. They think the shares have already had a strong run and they predict pre-tax profits will be down 24 per cent to £15.4m although they expect the dividend to be unchanged. They rate it a hold but raised their target price to 639p ahead of the results today.

Results/Updates: Alent, GW Pharamceuticals, Heritage Oil, HSBC, Morgan Sindall, Ultra Electronics.

Tomorrow

Are we not gobbling up enough pasties and pies at Greggs? Analysts at Espirito Santo think that although Greggs “is a well-run business” and has done well to control the profit and loss account “under sales pressure” Greggs “will struggle to maintain margins in a persistent negative [comparable] sales environment”. They expect  the costs of refurbishing stores will hurt the business in the short term, so they recommend selling the shares for now. Oriel Securities is also a seller and reminds investors that April’s profit warning demonstrated how tough it is finding it. Oriel predicts a pre-tax profit of £12.4m – a 25 per cent decrease on the same time a year ago.

Results/Updates: BBA Aviation, T Clarke, Dragon Oil, eSure, Fresnillo, Greggs, Hill & Smith, InterContinental Hotels, Legal & General, Meggitt, Pendragon, Rotork, SABMiller, SDL, Share, Standard Chartered, Zotefoams, 888 Holdings.

Wednesday

With plenty of beautiful sunshine in the UK there have been fears that holiday makers have stayed put. Analysts have previously warned that Easyjet could be hit by a fall in last-minute bookings. On Wednesday, it will be the holiday group Tui Travel’s turn to update the market on its third-quarter trading. Simon French at Panmure Gordon wonders if its fourth quarter could be hit by “discounting in the latest market” due to the hot weather. But the Thomson-owners’ third quarter results are expected to follow rival Thomas Cook, which last week reported a strong set of figures. Mr French predicts a £11m profit improvement for Tui’s second half and Numis forecasts it will “see an improvement in reported profits with the weakness of sterling being of some benefit”.

Results/Updates: Cyprotex, Eurasian Natural Resources, Ferrexpo, Novae, Old Mutual, Randgold Resources, Quintain Estates, Tui Travel, United Drug.

Thursday

The posh estate agent Savills is expected to report a rather good quarter and analysts may raise their forecasts for full-year pre-tax profits from their current  £64m. The first half is expected to have benefited from the continued housing boom and rising prices in central London.

Results/Updates: Amec, Aquarius Platinum, Aviva, Avocet Mining, Bellway, Cobham, Enterprise Inns, Grainger, Henderson, Kerry, Ladbrokes, Mondi, Pennon Puricore, Rio Tinto, Schroders, Standard Life, Spirax-Sarco, Savills.

Friday

The insurer Catlin will be feeling the pain from a round of international disasters including Oklahoma tornados and floods in Canada and Central Europe. It was also involved in insuring the Costa Concordia cruise ship that sank. Scribblers at Numis think its half-year results will show its premium income has risen due to international business, but expectations are running high following strong results from its rival Hiscox. Numis thinks Catlin’s interims will read as “disappointing in this context”. They think it has vulnerable earnings and low margins and rate it a hold with a 540p price target.

Results/Updates: Catlin.

Economics Diary

Today

Purchasing Managers’ Index.

Tomorrow

British Retail Consortium like-for-like sales, Industrial production, Manufacturing production, GDP estimate, New car registrations, UK 10-year Bond Auction.

Wednesday

Bank of England inflation report.

Thursday

ECB Monthly Bulletin, US  Unemployment claims.

Friday

Construction output, trade balance.

Start your day with The Independent, sign up for daily news emails
Sport
sportSo, how closely were you paying attention during 2014?
Arts and Entertainment
Dennis speaks to his French teacher
tvThe Boy in the Dress, TV review
News
One father who couldn't get One Direction tickets for his daughters phoned in a fake bomb threat and served eight months in a federal prison
people... (and one very unlucky giraffe)
Arts and Entertainment
Joel Edgerton, John Turturro and Christian Bale in Exodus: Gods and Kings
film
PROMOTED VIDEO
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
News
i100
Arts and Entertainment
The Plaza Theatre in Atlanta, Georgia was one of the 300 US cinemas screening
filmTim Walker settles down to watch the controversial gross-out satire
Arts and Entertainment
Amy Adams and Christoph Waltz in Tim Burton's Big Eyes
film reviewThis is Tim Burton’s most intimate and subtle film for a decade
Life and Style
Mark's crab tarts are just the right size
food + drinkMark Hix cooks up some snacks that pack a punch
Arts and Entertainment
Jack O'Connell stars as Louis Zamperini in Angelina Jolie's Unbroken
film review... even if Jack O'Connell is excellent
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Selby Jennings: VP/SVP Credit Quant- NY- Investment Bank

Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...

Selby Jennings: Quantitative Research | Equity | New York

Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...

Selby Jennings: SVP Model Validation

Not specified: Selby Jennings: SVP Model Validation This top tiered investment...

Selby Jennings: Oil Operations

Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...

Day In a Page

Aren’t you glad you didn’t say that? The worst wince-and-look-away quotes of the year

Aren’t you glad you didn’t say that?

The worst wince-and-look-away quotes of the year
Hollande's vanity project is on a high-speed track to the middle of nowhere

Vanity project on a high-speed track to nowhere

France’s TGV network has become mired in controversy
Sports Quiz of the Year

Sports Quiz of the Year

So, how closely were you paying attention during 2014?
Alexander Armstrong on insulting Mary Berry, his love of 'Bargain Hunt', and life as a llama farmer

Alexander Armstrong on insulting Mary Berry and his love of 'Bargain Hunt'

From Armstrong and Miller to Pointless
Sanchez helps Gunners hold on after Giroud's moment of madness

Sanchez helps Gunners hold on

Olivier Giroud's moment of madness nearly costs them
A Christmas without hope: Fears grow in Gaza that the conflict with Israel will soon reignite

Christmas without hope

Gaza fears grow that conflict with Israel will soon reignite
After 150 years, you can finally visit the grisliest museum in the country

The 'Black Museum'

After 150 years, you can finally visit Britain's grisliest museum
No ho-ho-hos with Nick Frost's badass Santa

No ho-ho-hos with Nick Frost's badass Santa

Doctor Who Christmas Special TV review
Chilly Christmas: Swimmers take festive dip for charity

Chilly Christmas

Swimmers dive into freezing British waters for charity
Veterans' hostel 'overwhelmed by kindness' for festive dinner

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Isis in Iraq: Yazidi girls killing themselves to escape rape and imprisonment by militants

'Jilan killed herself in the bathroom. She cut her wrists and hanged herself'

Yazidi girls killing themselves to escape rape and imprisonment
Ed Balls interview: 'If I think about the deficit when I'm playing the piano, it all goes wrong'

Ed Balls interview

'If I think about the deficit when I'm playing the piano, it all goes wrong'
He's behind you, dude!

US stars in UK panto

From David Hasselhoff to Jerry Hall
Grace Dent's Christmas Quiz: What are you – a festive curmudgeon or top of the tree?

Grace Dent's Christmas Quiz

What are you – a festive curmudgeon or top of the tree?
Nasa planning to build cloud cities in airships above Venus

Nasa planning to build cloud cities in airships above Venus

Planet’s surface is inhospitable to humans but 30 miles above it is almost perfect