The Week Ahead: Analysts predict improvements at Aegis

The City is looking forward to signs of improving momentum at Aegis, the marketing group which is due to issue full-year figures this Thursday.

With the economy on the mend, UBS reckons that the company could exceed margin expectations as cost savings pay off. Easier comparatives in the fourth quarter should also help, while benefits of new business wins "should ensure" that the rate of decline in revenues eases compared with the third quarter. Numis is also hopeful, saying that it expects trading to be similar to that reported by the large agency-holding groups, "with improving rates of decline against easing comparatives".

Altium adds that any news on the appointment of a new chief executive would also be helpful on the day. "These results will provide an opportunity to gauge whether the group is benefiting from the generally improving momentum across international advertising markets indicated in recent updates from Havas, Omnicom, WPP and a range of industry commentators, possibility providing some early impetus for upgrades," the broker said, noting that, closer to home, "there have been indications that market services spending is picking up".

Today: Results/updates: TT Electronics.



Tomorrow: Panmure Gordon anticipates a "strong set" of figures when the security services group G4S issues full-year results tomorrow, with the broker looking for £380m in adjusted pre-tax profits, compared with £332m last year. Elsewhere, UBS is looking for an 18 per cent hike in sales to just over £7bn, and a 19 per cent jump in earnings before interest, tax and amortisation to £496m.

"We expect a lot of focus to be on headline organic revenue growth rate, which should have stabilised," Panmure said. "In the third quarter of 2009, organic growth was 4.2 per cent, which we see as a respectable outcome given the lower inflationary environment. Within the mix, growth rates in its Secure Solutions developed markets business (around 30 per cent of revenues) remain under pressure, but this is being offset by Government and New Markets [business]."

Numis expects to see £54.6m in pre-tax profits when Close Brothers, the independent merchant bank, posts interim results tomorrow. Earnings per share are forecast to come in at 27.7p, while the dividend is expected to remain flat at 13.5p. "We expect the company to confirm that loan book growth remains strong, margins remain wide and impairment is falling, although treasury income is likely to be weak reflecting low interest rates," the broker said, repeating its "buy" stance in a preview note.

Also tomorrow Wellstream will issue full-years. Second-half operating profits are expected to be down 30 per cent, according to UBS, which sounded a note of caution on the outlook for 2010. "We expect year-on-year operating profit to turn positive in the first half of 2011, i.e. continued decline throughout 2010," the broker said, adding that, contrary to the rumour mill, it was sceptical about the prospects for deal activity. "We do not believe a takeover of a company is likely, and we therefore continue to value the company on a standalone basis."

Results/updates: Air Partner, Axis-Shield, Fairpoint, KBC Advanced Technologies, Wellstream, Close Brothers and G4S.



Wednesday: Investors may be treated to an upside surprise when Hikma Pharmaceuticals, the branded generics manufacturer, issues full-year figures midweek, with KBC Peel seeing scope for better-than-expected results. The broker is looking for $93.5m (£62m)in pre-tax profits, with $633.9m (£417m) in sales, with the former forecast coming in around 3 per cent ahead of consensus. Looking ahead, Panmure Gordon said that, in the medium term, the markets in which Hikma operates seem "very attractive". "The Middle East and North Africa (MENA) pharmaceutical market is worth $28bn (£18.4bn), and is forecast to experience robust growth in the coming decade," the broker said. "Growth will be driven by a growing and ageing population, an expanding middle class, oil-rich economies, and a move by pharmaceutical companies to enter the region as growth in the West becomes stagnant."

Results/updates: Avocet Mining, Cyprotex, Mecom, Xaar, Neovia Financial, Derwent London and Hikma Pharmaceuticals.



Thursday : Results/updates: Capital & Regional, Greggs, Investec, Premier Farnell, SIG, Salamander Energy, Savills and Aegis.



Friday: Results/updates: Headlam, T Clarke.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
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

Recruitment Genius: Sales Assistant / Buyer

£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...

Recruitment Genius: Customer Service Advisor

£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....

Recruitment Genius: Compliance Manager

£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...

Day In a Page

John Palmer: 'Goldfinger' of British crime was murdered, say police

Murder of the Brink’s-MAT mastermind

'Goldfinger' of British crime's life ended in a blaze of bullets, say police
Forget little green men - aliens will look like humans, says Cambridge University evolution expert

Forget little green men

Leading evolutionary biologist says aliens will look like humans
The Real Stories of Migrant Britain: An Algerian scientist adjusts to life working in a kebab shop

The Real Stories of Migrant Britain

An Algerian scientist struggles to adjust to her new life working in a Scottish kebab shop
Bodyworlds museum: Dr Gunther von Hagens has battled legal threats, Parkinson's disease, and the threat of bankruptcy

Dying dream of Doctor Death

Dr Gunther von Hagens has battled legal threats, Parkinson's disease, and the threat of bankruptcy
UK heatwave: Temperature reaches 39.8 degrees on Central Line - the sweatiest place in London

39.8 degrees recorded on Tube

There's hot (London) and too damn hot (the Underground). Simon Usborne braved the Central line to discover what its passengers suffer
Kitchens go hi-tech: From robot chefs to recipe-shopping apps, computerised cooking is coming

Computerised cooking is coming

From apps that automatically make shopping lists from your recipe books to smart ovens and robot chefs, Kevin Maney rounds up innovations to make your mouth water
Jessie Cave interview: The Harry Potter star has published a feminist collection of cartoons

Jessie Cave's feminist cartoons

The Harry Potter star tells Alice Jones how a one-night stand changed her life
Football Beyond Borders: Even the most distruptive pupils score at homework club

Education: Football Beyond Borders

Add football to an after-school homework club, and even the naughtiest boys can score
10 best barbecue books

Fire up the barbie: 10 best barbecue books

We've got Bibles to get you grilling and smoking like a true south American pro
Wimbledon 2015: Nick Bollettieri - Junk balls and chop and slice are only way 5ft 1in Kurumi Nara can live with Petra Kvitova’s power

Nick Bollettieri's Wimbledon Files

Junk balls and chop and slice are only way 5ft 1in Kurumi Nara can live with Petra Kvitova’s power
Ron Dennis exclusive: ‘This is one of the best McLaren teams ever – we are going to do it’

‘This is one of the best McLaren teams ever – we are going to do it’

Ron Dennis shrugs off a poor start to the season in an exclusive interview, and says the glory days will come back
Seifeddine Rezgui: What motivated a shy student to kill 38 holidaymakers in Tunisia?

Making of a killer

What motivated a shy student to kill 38 holidaymakers in Tunisia?
UK Heatwave: Temperatures on the tube are going to exceed the legal limit for transporting cattle

Just when you thought your commute couldn't get any worse...

Heatwave will see temperatures on the Tube exceed legal limit for transporting cattle
Exclusive - The Real Stories of Migrant Britain: Swapping Bucharest for London

The Real Stories of Migrant Britain

Meet the man who swapped Romania for the UK in a bid to provide for his family, only to discover that the home he left behind wasn't quite what it seemed
Cheaper energy on the way, but it's not all sunshine and rainbows

Cheaper energy on the way, but it's not all sunshine and rainbows

Solar power will help bring down electricity prices over the next five years, according to a new report. But it’s cheap imports of ‘dirty power’ that will lower them the most