The Week Ahead: G4S back in spotlight after Games stumble
Tuesday 28 August 2012
G4S is struggling to recover from its Olympic security fiasco and its under-pressure chief executive, Nick Buckles, will be back in the spotlight today. Analysts at Numis Securities, in what amounts to understatement, warn that G4S's half-year results will be "overshadowed by the impact of the Olympic problem", but they think the world's largest security firm could still be attractive for long-term investors, because of "significant growth potential from developing market operations which are currently 30 per cent of revenue". Half-year earnings of £240m are expected.
The FTSE 250 chemicals maker Yule Catto updated on trading last week – its first since its profits warning at the end of June – and shares fell on the news. The group, which reports first-half results today, has been hit by a slump in demand for nitrile latex, used in surgical gloves, putting pressure on pricing. Peel Hunt expects half-year sales of £636m and profit before tax of £55m. The Peel Hunt analyst Thomas Rands said: "If the nitrile pricing environment in Asia continues to worsen in the second half we see scope for full-year 2012 profit before tax to fall towards £90m. Strengthening euro headwinds could knock off another £1m."
Results/Updates: Bunzl, British Polythene Industries, Cairn Energy, John Laing, UTV, Lamprell, Regus, Raven Russia.
Last week JP Morgan Cazenove upgraded Antofagasta from neutral to overweight and raised its target price from 1,220p to 1,300p. The miner's half-year results are expected to be broadly stable. Scribes at UBS believe copper prices will have boosted the firm, but estimates net earnings to be down 10 per cent year-on-year at $624m (£395m).
The City is betting on another set of strong results from the betting firm Paddy Power. Peel Hunt expects profit of €67m (£53m), up nearly 20 per cent on the previous year, with Australia and the online business likely to be the main drivers.
Results/Updates: Mattioli Woods, 888 Holdings, Ant, Antofagasta, Ark Therapeutics, Chime Communications, Corin, D'Amico Group, DRS Data and Research Services, Grafton, Hansteen Holdings, Paddy Power, Serco, Servicepower Technologies, DP World, IQE, Serco.
It has been a busy first half for the media group Perform with two major acquisitions and a raft of sport rights renewals under its belt. Credit Suisse raised its price target to 435p from 390p last week. Peel Hunt has issued a buy rating at the same price, and the analyst Patrick Yau predicts that its core betting content business will report revenue growth from £29.6m to around £35m.The City expects a solid first half and further expansion into the second half.
The recruiter Hays has been hit by the lack of job opportunities in financial services and has been slashing costs in the UK to offset fee pressure. The UBS analyst William Vanderpump said: "We expect management in the UK to outline initial thoughts and plans on a three to six months view." Scribes at Peel Hunt expect a profit before tax close to £119.3m when it reports its full-year results. Peel Hunt's Henry Carver said: "We believe the recruiters should be valued according to the likely rate and timing of recovery, which is looking lacklustre at best – and we see no fundamental catalysts in the near term. We maintain our cautious stance."
Results/Updates: Admiral Group, APR Energy, Archipelago Resources, Cape, Churchill China, Evraz, Hardy Oil & Gas, Hunting, Integra, International Public Partnerships, Irish Continental Group, Kentz Corporation, Lombard Medical Technologies, Macfarlane Group, Marshalls, Melrose, HR Owen, Playtech, Polymetal International, Salamander Energy, Unite, Vislink, WPP.
Hermès, purveyor of silk scarves and leather handbags, will update the market with its first-half results on Friday. The Paris-based fashion house is a relative newcomer to China and has therefore seen growth in the region, unlike luxury peers who have begun to see a slowdown. It revealed its second-quarter sales last month which had rocketed 21.9 per cent to €815m. UBS expects earnings of €511m for the half year.
Results/Updates: Bwin.party, Charles Taylor, Chesnara, Computacenter, EMIS, Headlam, Independent News & Media, Lavendon Group, Molins, Oxford Biomedica, Restaurant Group.
Nationwide house price index.
US second-quarter gross domestic product data and Beige Book, quarterly report on the state of the US economy.
Net consumer credit, mortgage approvals, M4 money supply.
August's GfK consumer confidence, US consumer sentiment and July US factory orders.
Brits who migrate to Costa del Sol more unhappy than those who stay at home
LAPD releases haunting crime scene photos from its archives
Peaches Geldof funeral: Bob Geldof leads tributes at emotional service in same church she married husband Thomas Cohen and mother Paula Yates was buried
Duke and Duchess of Cambridge photographed with Prince George off-duty may spark privacy row
Malaysia Airlines flight MH370: Concerns grow among search officials that missing jet ‘may have landed somewhere else’
Ukip election posters: Nigel Farage defends 'racist' campaign anti-immigration campaign ahead of Europe elections
Is Britain really a land of God? Furious debate after David Cameron claims we are a Christian country
An open letter to Nigel Farage: you may smile, but I am not seduced
Ukip leader Nigel Farage defends employing German wife, at launch of anti-immigration poster campaign
'Sinful': Video of British Muslims dancing to Pharrell Williams's hit Happy comes under attack
David Cameron's constituency office calls police on food bank campaigners Bishop of Oxford and Reverend Keith Hebden
- 1 Revealed: Scientists ‘edit’ DNA to correct adult genes and cure diseases
- 2 David Cameron's constituency office calls police on food bank campaigners Bishop of Oxford and Reverend Keith Hebden
- 3 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 4 Women take on Bear Grylls over 'sexist' male-only desert island show
- 5 Malaysia Airlines flight MH370: Concerns grow among search officials that missing jet ‘may have landed somewhere else’
iJobs Money & Business
£90000 - £110000 per annum + full Package: Harrington Starr: Director of Cons...
Negotiable: Harrington Starr: Automation Test Manager (C#, C++, VB.NET, QTP, M...
£20000 - £26000 per annum + benefits+bonus+package: Harrington Starr: Data Qua...
£25000 - £32000 per annum: Harrington Starr: Graduate Developer/QA - (Java, C+...