The Week Ahead: Investors in Imagination Technologies are dreaming of a takeover


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Investors in Imagination Technologies are dreaming of a takeover. Annual results tomorrow for the company which creates the chips that power iPhones and iPads could revive the bid chatter. Analysts at JPMorgan Cazenove expect the FTSE 250 firm to meet guidance with sales of £179.7m, up from £170.8m the year before, with underlying earnings touted to be £21.7m.

They also suggested that this year might not be quite the turning point – or “inflection” – that it had anticipated after March’s profit warning. “Although we believe the worst is behind the company, it is not clear that FY16 [full-year 2016] is an inflection,” JPMorgan said.

Liberum Capital analysts said they see the chipmaker as a genuine acquisition target after Intel dumped its stake earlier in the year, touting several American names as potential buyers.

Carpetright’s annual results tomorrow will show how big a part the online business has played in the carpet retailer’s recovery. Its share price has doubled since October. Before that, investors suffered from a string of profit warnings that resulted in a change at the top. Citigroup’s number crunchers recently argued that the change in CEO “should act as the catalyst to revive Carpetright’s trading performance”. In April, full-year net profit guidance was given as £13m, while analysts had been expecting £10m to £11m.

A buoyant London property market has lifted shares in FTSE 250-listed St Modwen Properties, which reports its half-year results tomorrow. In a trading statement at the start of June, the property regeneration specialist said pre-tax profits would be “significantly ahead of the 2014 first-half results”.

Greene King’s annual results are out on Wednesday, just a week after the pub operator wrapped up the takeover of Spirit Pub Company.

Grocery delivery firm Ocado announces half-year results tomorrow, the day before Tullow Oil’s second-quarter sales numbers. Thursday sees housebuilder Persimmon fill investors in on its recent trading.

Watch out for US non-farm payrolls on Thursday. The data is not out on Friday as is usually the case because US markets are shut for Independence Day.