The Week Ahead: DSG investors excitement may be shortlived

DSG International, the retailing group that owns Currys and PC World, is due to publish interim results on Thursday. It finished last week strongly with its shares spiking by nearly 21 per cent to 13p after analysts at Credit Suisse issued a positive update. The watchers, in something of a volte face, said that the group is likely to outperform the sector, adding: "In our view the market has overreacted to concerns about the group's sustainability in the medium term. After our long-term negative stance on the stock, we move to outperform with a target of 25p."

Investors were no doubt jumping for joy after what can at best be described as a hairy few months. What is more, the excitement may be short-lived. There have been rumours that the company will be forced to sell off some of its European assets, largely because of a share price that has been in freefall in the last year, coming off by more than 90 per cent.

Despite the positive headline in the Credit Suisse note, there was plenty of bad news, too. The watchers slashed April 2009 profit before tax estimates by 63.4 per cent to £33.7m and April 2010 to £4.7m from £78.6m. Thursday's announcement is not likely to be any easier, with some pretty miserable numbers expected. Even the group's own house brokers, usually the last to go down with a sinking ship, have been furiously downgrading the shares. Citigroup, for example, cut its price target for DSG shares last week from 30p to 18p.



Today: Results/updates: Mitie Group, RM, E2V Technologies, Homeserve, Proventec, Detica, Phoenix IT Group, Vectura Group, Digital Marketing Group.



Tomorrow: Morgan Stanley anticipates a reassuring update from Imperial Tobacco, the Bristol-based cigarette and cigar manufacturer, which is due to publish interim results tomorrow. A presentation on debt refinancing is likely to be the focus, with investors seeking clarity on the reasons behind the recent widening of Imperial's credit default swap spreads.

Morgan Stanley said this did not reflect fundamentals. "In our view, the market is overlooking strong cash generation, earnings growth acceleration and stable underlying trends in key markets ... The most likely explanation is the 'technical' impact of loan hedging (for regulatory capital reasons) by the banks who lent Imperial funds to acquire Altadis (ie, who hedge their credit exposure to Imperial by buying IMT credit default swaps). This may well change post-year end."

Also tomorrow, VP, the specialist equipment rental group, is due to publish interim results. Panmure Gordon will be looking for £13m in adjusted pre-tax profits, which, if achieved, would generate 4.7 per cent growth in earnings per share. The interim dividend is expected to come in at 3p, compared with 2.8p last year.

Results/updates: Imperial Tobacco, Kcom, Superglass Holdings, CML Microsystems, Bango, Topps Tiles, Telford Homes, Intermediate Capital Group, Intelek, SSL International, Paragon Group, Renew Holdings, Chapelthorpe, Hamworthy, Severn Trent, The 600 Group, Gooch & Housego, VP, Carclo, Torotrak, Intec Telecom Systems.



Wednesday: Results/updates: Britvic, United Utilities, De La Rue, Qinetiq, Speedy Hire, Acal, Telecom Plus, Johnson Matthey, Caffyns, Mitchells & Butlers, Atkins, Hyder Consulting, Compass Group, Top Ten Holdings, Focus Solutions Group, GB Group, BSS Group, Assura Group, ITIS Holdings.



Thursday: Evolution Securities is looking for an update on network spending when Sepura, the Cambridge-based communications company, reports interim results. The company supplies more than 30 per cent of the world's Tetra terminals, digital radios used by the emergency services and the military, a market that, until recently, was seen as relatively immune to the slowdown. "[Over the past few weeks] the stock market has begun to fret about government budgets coming under pressure," Evolution said. "At this point we are upbeat about Sepura's prospects in those countries investing in networks. The cost benefit of a terminal is highly attractive and government agencies will be reluctant to let their shiny new Tetra networks turn into embarrassing white elephants for want of investment in terminals. So, if Sepura reports that network spending remains robust, we expect the company will have a good year in 2009."

Results/updates: James Latham, DSG International, Chamberlin, Pennon Group, Quintain Estates & Developments, Holidaybreak, Mountview Estates, Jarvis, Sepura, Grainger, Halma, McKay Securities, Northumbrian Water Group, Avon Rubber, AssetCo, Dyson Group, Hogg Robinson Group, Brewin Dolphin Holdings, Intec Telecom Systems, Byotrol, Findel, FKI, Creston, Helical Bar, Tui Travel, Sportingbet.



Friday: Results/updates: Goldshield Group, RPC Group, Goldstone Resources.

News
news

Emergency call 'started off dumb, but got pretty serious'

Sport
Erik Lamela celebrates his goal
football

Argentinian scored 'rabona' wonder goal for Tottenham in Europa League – see it here

News
The cartoon produced by Bruce MacKinnon for the Halifax Chronicle-Herald on Thursday, showing the bronze soldiers of the war memorial in Ottawa welcoming Corporal Cirillo into their midst
news
News
people

Far-right organisation has defended its actions on Facebook

PROMOTED VIDEO
Voices
Funds raised from the sale of poppies help the members of the armed forces with financial difficulties
voicesLindsey German: The best way of protecting soldiers is to stop sending them into disastrous conflicts
News
The Edge and his wife, Morleigh Steinberg, at the Academy Awards in 2014
peopleGuitarist faces protests over plan to build mansions in Malibu
News
Russell Brand was in typically combative form during his promotional interview with Newsnight's Evan Davis
people

Thought you'd seen it all after the Jeremy Paxman interview?

News
peopleFox presenter gives her less than favourable view of women in politics
Property
One bedroom terraced house for sale, Richmond Avenue, Islington, London N1. On with Winkworths for £275,000.
property
Voices
Nigel Farage has backed DJ Mike Read's new Ukip song
voicesNigel Farage: Where is the Left’s outrage over the sexual abuse of girls in the North of England?
News
i100
News
ebooksAn unforgettable anthology of contemporary reportage
News
Mario Balotelli has been accused of 'threateningly' telling a woman to stop photographing his Ferrari
peoplePolice investigate claim Balotelli acted 'threateningly' towards a woman photographing his Ferrari
Arts and Entertainment
Paul Anderson plays Arthur Shelby in Peaky Blinders series two
tvReview: Arthur Shelby Jr seems to be losing his mind as his younger brother lets him run riot in London
Voices
Don’t try this at home: DIY has now fallen out of favour
voicesNick Harding, who never did know his awl from his elbow, is glad to see the back of it
Arts and Entertainment
Miranda Hart has called time on her award-winning BBC sitcom, Miranda
tv
Sport
Phil Jones (left) attempts to stop the progress of West Bromwich Albion’s James Morrison on Monday
Chelsea test can be the making of Jones and Rojo, writes Paul Scholes
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

Markit EDM (CADIS) Developer

£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...

COO / Chief Operating Officer

Competitive (DOE): Guru Careers: A COO / Chief Operating Officer is needed to ...

SQL Developer with T-SQL, Watford, Hertfordshire - £350 - £360

£350 - £360 per day: Ashdown Group: SQL Developer with T-SQL, Watford, Hertfor...

Chief Financial Officer

120-150k: Accountancy Action: We are looking for an experienced CFO from a min...

Day In a Page

Wilko Johnson, now the bad news: musician splits with manager after police investigate assault claims

Wilko Johnson, now the bad news

Former Dr Feelgood splits with manager after police investigate assault claims
Mark Udall: The Democrat Senator with a fight on his hands ahead of the US midterm elections

Mark Udall: The Democrat Senator with a fight on his hands

The Senator for Colorado is for gay rights, for abortion rights – and in the Republicans’ sights as they threaten to take control of the Senate next month
New discoveries show more contact between far-flung prehistoric humans than had been thought

New discoveries show more contact between far-flung prehistoric humans than had been thought

Evidence found of contact between Easter Islanders and South America
Cerys Matthews reveals how her uncle taped 150 interviews for a biography of Dylan Thomas

Cerys Matthews on Dylan Thomas

The singer reveals how her uncle taped 150 interviews for a biography of the famous Welsh poet
DIY is not fun and we've finally realised this as a nation

Homebase closures: 'DIY is not fun'

Homebase has announced the closure of one in four of its stores. Nick Harding, who never did know his awl from his elbow, is glad to see the back of DIY
The Battle of the Five Armies: Air New Zealand releases new Hobbit-inspired in-flight video

Air New Zealand's wizard in-flight video

The airline has released a new Hobbit-inspired clip dubbed "The most epic safety video ever made"
Pumpkin spice is the flavour of the month - but can you stomach the sweetness?

Pumpkin spice is the flavour of the month

The combination of cinnamon, clove, nutmeg (and no actual pumpkin), now flavours everything from lattes to cream cheese in the US
11 best sonic skincare brushes

11 best sonic skincare brushes

Forget the flannel - take skincare to the next level by using your favourite cleanser with a sonic facial brush
Paul Scholes column: I'm not worried about Manchester United's defence - Chelsea test can be the making of Phil Jones and Marcos Rojo

Paul Scholes column

I'm not worried about Manchester United's defence - Chelsea test can be the making of Jones and Rojo
Frank Warren: Boxing has its problems but in all my time I've never seen a crooked fight

Frank Warren: Boxing has its problems but in all my time I've never seen a crooked fight

While other sports are stalked by corruption, we are an easy target for the critics
Jamie Roberts exclusive interview: 'I'm a man of my word – I'll stay in Paris'

Jamie Roberts: 'I'm a man of my word – I'll stay in Paris'

Wales centre says he’s not coming home but is looking to establish himself at Racing Métro
How could three tourists have been battered within an inch of their lives by a burglar in a plush London hotel?

A crime that reveals London's dark heart

How could three tourists have been battered within an inch of their lives by a burglar in a plush London hotel?
Meet 'Porridge' and 'Vampire': Chinese state TV is offering advice for citizens picking a Western moniker

Lost in translation: Western monikers

Chinese state TV is offering advice for citizens picking a Western moniker. Simon Usborne, who met a 'Porridge' and a 'Vampire' while in China, can see the problem
Handy hacks that make life easier: New book reveals how to rid your inbox of spam, protect your passwords and amplify your iPhone

Handy hacks that make life easier

New book reveals how to rid your email inbox of spam, protect your passwords and amplify your iPhone with a loo-roll
KidZania lets children try their hands at being a firefighter, doctor or factory worker for the day

KidZania: It's a small world

The new 'educational entertainment experience' in London's Shepherd's Bush will allow children to try out the jobs that are usually undertaken by adults, including firefighter, doctor or factory worker