The Week Ahead: Cheaper land set to boost housebuilders' margins

 

Today

The recent rush of results from the housebuilders comes to an end this week with full-year trading updates from Bovis Homes today and Taylor Wimpey tomorrow. Despite prospective buyers still having a tough time of it, the reporting season has largely been a positive one, with margins helped by building on cheaper land.

Margins is the area in which Numis Securities' Chris Millington believes Bovis could end up beating the market's expectations, although he says thereis little chance of other surprisesemerging.

Results/Updates: Bovis Homes and Exillon Energy.

Tomorrow

Recent Christmas figures from the global luxury sector have been rather mixed, and Royal Bank of Scotland believes Burberry will reveal on Tuesday a slowdown in its like-for-like retail sales growth over the third quarter to 13 per cent, down from 15.5 per cent during the previous six months.

However, the broker's analysts point out that the upmarket retailer is facing tougher comparatives for the period. They also add that there is a chance the numbers could beat expectations, saying "anecdotal data support our view that the travelling luxury consumer continues to drive sales in key markets".

Greene King's performance has impressed recently, and investors should once again be merry after the pub operator's trading update tomorrow. The group's managed division saw its like-for-like revenues rise 4 per cent during the first 30 weeks of the year and Shore Capital believes this trend will have continued over the following seven weeks, with the broker also optimistic over the performance of its tenanted properties and volumes of its own brewed beers.

Results/Updates: Burberry, DixonsRetail, Experian, Greene King, IG Group, Intermediate Capital, Rio Tinto and Taylor Wimpey.

Wednesday

Man Group endured a pretty sorry 2011 – it was the fourth worst blue-chip performer – and 2012 is heading the same way, with the world's largest listed hedge already having dropped roughly 14 per cent since the New Year.

Those investors still left will be desperately hoping its nine-month trading statement on Wednesday does not prompt another lurch down, although the signs aren't good. A number of brokers, including JP Morgan Cazenove and Credit Suisse, have cut their estimates recently, while RBC's Peter Lenardos expects Man to reveal $2.3bn of outflows over the last three months of 2011.

Results/Updates: African Barrick Gold, BHP Billiton, Diploma, Hochschild Mining, JD Wetherspoon, Man Group and Tullow Oil.

Thursday

The rush of post-Christmas releases from the retail sector is starting to slow down, but there are still a few high-street names left to update the market. Kesa Electricals is one of them, with its third-quarter figures out on Thursday, and it is thought that the performance of its Comet chain is unlikely to cause any pangs of regret over its agreement to sell the business to OpCapita for £2.

UBS believes Comet's like-for-like sales will have dropped 13 per cent, while forecasting just a 3 per cent fall for Kesa's pan-European chain Darty. However, the broker also warns the company's Italian operations should be a cause for worry, saying it is "hard to see how this business can achieve profitability in its current form."

Results/Updates: Aberdeen Asset Management, ASOS, Associated British Foods, Jupiter Fund Management, Kesa Electricals, Premier Oil, SAB Miller, St James's Place and William Hill.

Friday

The week is brought to an end by Close Brothers, with the independent City bank releasing its pre-close statement. Back in November the group said that times have been tough for its Securities operations, although its banking unit was doing rather better.

This time, Numis' James Hamilton believes Close's Winterfloods market-making business will have seen a "significant decline" in revenues over the first half of the year, while on the banking side he predicts that the group's loan book will have grown 7 per cent compared to the previous six months.

Results/Updates: Close Brothers.

TODAY Rightmove house price index; US markets closed for Martin Luther King Day.

TOMORROW Consumer price index; Eurozone consumer price index; Retail price index; US Empire State manufacturing survey.

WEDNESDAY Labour market report; Unemployment statistics;US industrial production;US producer price index.

THURSDAY European CentralBank monthly report; US consumer price index; US housing starts;US unemployment figures; US Philadelphia Fed survey.

FRIDAY Bank of England lending trends report; Retail sales; US existing home sales.

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?
SPONSORED FEATURES
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

SThree: Experienced Recruitment Consultant

£20000 - £40000 per annum + OTE + Incentives + Benefits: SThree: Established f...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE 40/45k + INCENTIVES + BENEFITS: SThree: The su...

Recruitment Genius: Collections Agent

£14000 - £16000 per annum: Recruitment Genius: This company was established in...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...

Day In a Page

Isis profits from destruction of antiquities by selling relics to dealers - and then blowing up the buildings they come from to conceal the evidence of looting

How Isis profits from destruction of antiquities

Robert Fisk on the terrorist group's manipulation of the market to increase the price of artefacts
Labour leadership: Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea

'If we lose touch we’ll end up with two decades of the Tories'

In an exclusive interview, Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea
Tunisia fears its Arab Spring could be reversed as the new regime becomes as intolerant of dissent as its predecessor

The Arab Spring reversed

Tunisian protesters fear that a new law will whitewash corrupt businessmen and officials, but they are finding that the new regime is becoming as intolerant of dissent as its predecessor
King Arthur: Legendary figure was real and lived most of his life in Strathclyde, academic claims

Academic claims King Arthur was real - and reveals where he lived

Dr Andrew Breeze says the legendary figure did exist – but was a general, not a king
Who is Oliver Bonas and how has he captured middle-class hearts?

Who is Oliver Bonas?

It's the first high-street store to pay its staff the living wage, and it saw out the recession in style
Earth has 'lost more than half its trees' since humans first started cutting them down

Axe-wielding Man fells half the world’s trees – leaving us just 422 each

However, the number of trees may be eight times higher than previously thought
60 years of Scalextric: Model cars are now stuffed with as much tech as real ones

60 years of Scalextric

Model cars are now stuffed with as much tech as real ones
Theme parks continue to draw in thrill-seekers despite the risks - so why are we so addicted?

Why are we addicted to theme parks?

Now that Banksy has unveiled his own dystopian version, Christopher Beanland considers the ups and downs of our endless quest for amusement
Tourism in Iran: The country will soon be opening up again after years of isolation

Iran is opening up again to tourists

After years of isolation, Iran is reopening its embassies abroad. Soon, there'll be the chance for the adventurous to holiday there
10 best PS4 games

10 best PS4 games

Can’t wait for the new round of blockbusters due out this autumn? We played through last year’s offering
Transfer window: Ten things we learnt

Ten things we learnt from the transfer window

Record-breaking spending shows FFP restraint no longer applies
Migrant crisis: UN official Philippe Douste-Blazy reveals the harrowing sights he encountered among refugees arriving on Lampedusa

‘Can we really just turn away?’

Dead bodies, men drowning, women miscarrying – a senior UN figure on the horrors he has witnessed among migrants arriving on Lampedusa, and urges politicians not to underestimate our caring nature
Nine of Syria and Iraq's 10 world heritage sites are in danger as Isis ravages centuries of history

Nine of Syria and Iraq's 10 world heritage sites are in danger...

... and not just because of Isis vandalism
Girl on a Plane: An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack

Girl on a Plane

An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack
Why Frederick Forsyth's spying days could spell disaster for today's journalists

Why Frederick Forsyth's spying days could spell disaster for today's journalists

The author of 'The Day of the Jackal' has revealed he spied for MI6 while a foreign correspondent