The Week Ahead: Analysts predict strong revenue for Imagination - Sharewatch - Business - The Independent

The Week Ahead: Analysts predict strong revenue for Imagination

There was not a great reaction to Imagination Technologies' announcement of a $47m (£29.6m) deal to buy HelloSoft in November, so Numis Securities' prediction that the chip maker's interims tomorrow may see it reveal a further acquisition could worry some.

Aside from that, the broker's analyst Nick James is forecasting "strong royalty volumes offset by weakness in [its digital radio unit] Pure", as well as group revenue of £47.4m, which would be a 24 per cent year-on-year rise.

Although Mr James says that he remains "attracted to [Imagination's] positioning and prospects", he has still cut his advice to "reduce", saying that "with the stock up 76 per cent over the past year, [we] are conscious that a lot has been priced in."

Looking to the future, the group is in close competition with its rival, ARM Holdings, over providing chips for use in smartphones, and Mr James has sounded a warning over Imagination's involvement in a market that is being shaken up by Googe's "Android".

Noting that the performance of the company, whose technology can be found in the iPhone, "has been closely tied to Apple's", he warns: "Android's rapid gains ... suggest Apple won't completely dominate the market as it did with portable media players."



Today

Results/Updates: AssetCo.



Tomorrow

Carpetright will be hoping when it releases its interim results tomorrow, that investors will not respond as badly as they did to its second-quarter update in October. Then, a significant fall in like-for-like sales prompted the retailer's share price to drop by more than 7 per cent.

Following those numbers, Numis lowered its pre-tax profit forecast for the full year to £26m, and this time its analyst Andrew Wade is expecting no "significant surprises". Although he calls it "a high-quality business", his recommendation on the company is "reduce" as he describes its share price as "expensive".

Also enlightening the market tomorrow with an update is Whitbread, which is due to release its interim management statement. HSBC's Ben O'Toole reckons that, after two years of "investing in price in order to increase occupancy towards management's 80 per cent target", the year 2011 will see "underlying pricing [turning] positive" at the group's successful budget hotel chain, Premier Inn. Back to the present, Mr O'Toole expects strong trading not only from Premier Inn, but also from Whitbread's pub restaurants and the Costa Coffee chain. Yet he has downgraded the group from "overweight" to "neutral" on valuation grounds, despite his positive outlook overall. Keen watchers of the small-cap companies will be looking out for Renovo's preliminary results tomorrow. The biotech company, which develops drugs for scar reduction, received a boost at the end of last month with the publication of positive results from a new formula of its Juvista product, designed for children.

Panmure Gordon's analysts call it "a novel, first-in-class product", and say they are expecting more and more news to come out next year on the drug, which they feel is "the main value-driver for the Renovo investment thesis".

In terms of the figures being announced, Panmure – which has Renovo on a "buy" recommendation – says the only really important number is the cash position; it forecasts that the group will declare reserves of £46m, and first-half revenues of £9.8m.

Results/Updates: 2ergo, Betfair, Carpetright, Domino Printing Sciences, Drax, Go-Ahead, Imagination Technologies, Private & Commercial Finance, Renovo and Whitbread.



Wednesday

Results/Updates: Expansys and Senior.

Thursday

Results/Updates: Chrysalis, Cohort, Imaginatik, John Wood and Sports Direct International.



Friday

Pub group Punch Taverns releases its interim management statement on Friday, and Deutsche Bank's Geof Collyer is forecasting that like-for-like profits will be "at the bottom of the sector performance", despite evidence of positive results hopefully being seen from "the refurbishment programme in the managed estate".

Investors' eyes will be turned towards central Asia, according to Numis, when the oil services group Petrofac unveils its latest trading update at the end of the week.

"[It] may provide further detail on the large South Yoloten phase II contract in Turkmenistan," says the broker's analyst, Sanjeev Bahl, "which is expected to be awarded before year-end". He also forecasts like-for-like bottom-line growth of more than 20 per cent.

Results/Updates: Keller, Petrofac and Punch Taverns.

Today

Rightmove house price index



Tomorrow

Communities and Local Government house price index, CPI, Royal Institution of Chartered Surveyors house-price balance, RPI, US business inventories, US Federal Open Market Committee rate decision, US PPI and US retail sales

Wednesday

Average weekly earnings, CBI distributive trades, unemployment figures, US CPI, US Empire manufacturing and US industrial production



Thursday

Retail sales



Friday

Nationwide Consumer Confidence

News
John Travolta is a qualified airline captain and employed the pilot with his company, Alto
people'That was the lowest I’d ever felt'
Life and Style
healthIt isn’t greasy. It doesn’t smell. And moreover, it costs nothing
Arts and Entertainment
Emma Thompson and Bryn Terfel are bringing Sweeney Todd: The Demon Barber of Fleet Street to the London Coliseum
theatre

Returning to the stage after 20 years makes actress feel 'nauseous'

News
peopleThe Times of India said actress should treat it as a 'compliment'
PROMOTED VIDEO
Property
Home body: Badger stays safe indoors
property
News
The programme sees four specialists creating what they believe are three perfect couples, based on scientific matchmaking. The couples will not meet until they walk down the aisle together
tvUK wedding show jilted
Arts and Entertainment
US pop diva Jennifer Lopez sang “Happy Birthday” to Gurbanguly Berdimuhamedow, president of Turkmenistan
musicCorporate gigs become key source of musicians' income
Arts and Entertainment
You've been framed: Henri Matisse's colourful cut-outs at Tate Modern
artWhat makes a smash-hit art show
News
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
While many films were released, few managed to match the success of James Bond blockbuster 'Skyfall'
filmsDaniel Craig believed to be donning skis as 007 for first time
Student
The Guildhall School of Music and Drama is to offer a BA degree in Performance and Creative Enterprise

Undergraduates will be able to study beatboxing and performance poetry at one of Europe’s leading conservatoires for the first time, after the Guildhall School of Music and Drama revealed plans for a “groundbreaking” degree course.

Sport
Mikel Arteta pictured during Borussia Dortmund vs Arsenal
champions league
Voices
Yes supporters gather outside the Usher Hall, which is hosting a Night for Scotland in Edinburgh
voicesBen Judah: Is there a third option for England and Scotland that keeps everyone happy?
Arts and Entertainment
Pulp-fiction lover: Jarvis Cocker
booksJarvis Cocker on Richard Brautigan
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

Sales Executive

£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...

Payroll & Accounts Assistant

£20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...

SQL Developer - Watford/NW London - £280 - £320 p/d - 6 months

£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Senior BA - Insurance **URGENT**

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Day In a Page

Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week