The Week Ahead: Leaner and greener is the name of the game for Mitie
Nick Clark is the arts correspondent of The Independent. He joined the newspaper in June 2007, initially reporting on the stock markets. He has covered beats including the City, and technology, media and telecoms and made the switch to arts in December 2011. He has also contributed articles to the sports section.
Monday 21 November 2011
The Local Government Secretary, Eric Pickles, published a report last week which called for improved energy efficiency in public buildings. The study, entitled, Leaner and Greener Part 2: Putting Buildings To Work,recommended investment in energy-efficient measures and renewable energy, saying public bodies should team up with the private sector to do so. Seymour Pierce believes Mitie and Carillion "are the two best-placed companies under our coverage to benefit from this".
Caroline de La Soujeole, at Seymour Pierce, labelled Mitie, the outsourcing and energy services company, a "buy" and said: "Mitie already has a track record of working in partnership with the public sector to improve energy efficiency, putting it on a strong footing to win more work in this area". She expects its sales to hit £961.6m in today's interim results, with adjusted profit before tax of £50m.
Diploma specialises in technical products and services for sectors including life sciences, seals (engineering equipment, not the animals) and controls. Altium Securities is pretty bullish about its full-year announcement today, following the recent results by Caterpillar and Fenner.
Life science revenues are forecast to rise by a third thanks to several acquisitions, while underlying revenues at controls are expected to grow by 16 per cent. Iain Staples, at Altium, believes uncertainty in the US construction industry will not be a huge problem. About 11.5 per cent of Diploma's sales come from that sector and management is cutting costs and reducing working capital exposure to offset problems.
Results: Diploma; Mitie.
Results: Hamworthy; CML Microsystems; Halma; Enterprise Inns; Big Yellow; Fastfill; Digital Barriers; Optos; Homeserve; Intermediate Capital; Victoria; Mitchells & Butlers; De La Rue; Torotrak; Telecom Plus; Kcom; Paragon; GW Pharmaceuticals.
Analysts at Charles Stanley expect the catering giant Compass to post organic revenue growth of 5 per cent in its full-year results. Its operations in North America make up about 44 per cent of its revenues, these are expected to show 7 per cent growth. The rest of the world should beat that, although Compass's UK business is still struggling. Operating margins will remain flat after the impact of the nuclear disaster in Japan, which is likely to hit profits by up to £20m, as well as a series of deals.
Compass has spent £425m on bolt-on acquisitions, which will see its debt rise to about £800m. It will continue to look at deals but Tony Shepard at Charles Stanley believes investors will not suffer because Compass can spend its free cash flow, and still look to raise the dividend.
The chemicals and precious metals group Johnson Matthey will lift the lid on its half-year performance on Wednesday. Its fine chemicals and environmental technologies units are expected to show sales growth of more than 14 per cent but the focus will be on the precious metal products arm, after forecasts for platinum prices for the next six months were cut. Charles Stanley is pretty happy with the company, despite recent downward revisions for the full year, and predicts pre-tax profits of £185m for the first half.
Hyder Consulting's interims are expected to be positive, according to Northland Capital's Andy Hanson. He said its focus mainly outside the UK "has allowed it to avoid many of the pitfalls experienced by its peers". The group was hit by the floods in Australia this year, but its recent pre-close statement showed delayed contracts were coming back quicker than expected.
Daily Mail & General Trust has had a tricky old time of late, with its consumer titles dragging and news that its results would be towards the bottom end of the range. Singer Capital said the Competition Commission's move to refer the partial disposal of some regional newspapers "highlights a potentially harsher regulatory environment than many were assuming", and DMGT's current rating looked demanding.
Yet Numis Securities was more bullish following DMGT's September update, saying the business-to-business arm had performed in line with expectations and the hit to its national newspapers was down to a one-off investment designed to help the Mail On Sunday pick up former News Of The World readers.
Results: DMGT; McKay Secs; Avon Rubber; United Utilities; Compass; Renew; Hyder Consulting; QinetiQ; Dee Valley; Sepura.
Results: Thomas Cook; PayPoint; Grainger; Helical Bar; Phytopharm; London Mining; Castings; Pennon; Dixons Retail; Future; Youngs & Co's Brewery.
Results: Omega Diagnostics; Fuller Smith & Turner; Severn Trent; Refresco.
TODAY No data expected.
TOMORROW Public finances data, including a breakdown of the public sector net borrowing requirement.
WEDNESDAY Bank of England's Monetary Policy Committee: minutes of November meeting.
THURSDAY GDP by expenditure (first revision), Confederation of British Industry Industrial Trends Survey.
FRIDAY No data expected.
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