The Week Ahead: Logica to reveal impact of public spending cuts

The potential impact of the Government's cost-cutting drive will be among the talking points when the IT group Logica posts its half-yearly results this week.

Goldman Sachs has warned that with around 13 per cent of revenues exposed to the UK public sector, Logica could be hit as spending is rolled back. The company is likely to be questioned about its views on the probable impact. Happily for investors, Logica is not involved in any of the projects singled out for immediate cuts, according to Panmure Gordon. As the broker notes, the company is "well spread in the UK public sector", with contracts across 55 departments and agencies. "Much of Logica's revenue is either outsourcing or in 'key skills', which are difficult to readily replace," Panmure said, adding that the company also has "good relationships with the key players" in the new administration and "with the civil servants who will advise them".

Goldman, on the other hand, is more bearish and reckons the market may be overlooking the risks posed by the fiscal squeeze. "Consensus does not yet reflect these risks, and we expect estimates to track down as incremental details around the department and nature of public-sector cuts emerge," the broker said in a round-up of the IT services sector published last week.

Today

The ground engineer Keller is due to post its interim results this morning and, following on from the first quarter, when bad weather weighed on the business, Numis expects the company to report an improvement in performance over the second quarter of the year. "The main focus will be [the] US and the trends Keller is seeing in the residential, commercial and infrastructure markets," the broker said. "Additionally, the market will be looking to gain an insight over the competitive pressures currently prevalent in the US, and whether these have the potential to emerge elsewhere or, in fact, are easing."

Results/Updates: Fidessa, Intertek, Keller, Management Consulting Group, Senior, Telecity, Ultra Electronics, Xchanging and XP Power.

Tomorrow

Deutsche Bank is anticipating Drax's half-yearly figures to be in line with market hopes, with the power-station operator expected to report a modest year-on-year increase in earnings before interest, tax, depreciation and amortisation.

Beyond the figures, the broker expects the company to issue an update on its plans for biomass-fired generating plants, though actual investment in standalone biomass projects is not expected until later in the year.

Results/Updates: 888 Holdings, Capital & Counties Properties, Drax, Fresnillo, GKN, Meggitt , Rotork, Taylor Wimpey, Weir and Xstrata.

Wednesday

Results/Updates: Arbuthnot, Cookson, Legal & General, Lloyds Banking Group, Premier Foods, Standard Chartered, Wolfson Microelectronics, British Land, WS Atkins, Carpetright, Antofagasta, the Eurasian Natural Resources Corporation and Marston's.

Thursday

Panmure is looking forward to a dividend increase alongside half-yearly results from RSA Insurance later this week. The broker expects the company to increase the first-half payout by 6 per cent to 3.07p per share, slightly above consensus hopes of a rise to 3.06 per share.

Turning to the lenders, and interim figures from Barclays are likely to show slower second-quarter trading at the group's Barclays Capital investment banking division. The expectations stem from weakness among peers and an update at the end of June, when Barclays confirmed that "investment-banking market conditions in May and June have been softer...reflecting lower levels of capital markets and mergers & acquisitions activity". That said, Barclays Capital may still outperform the broader investment-banking market, according to Citigroup.

"We believe that the top-line revenues of Barclays Capital will hold up much better than the industry average...and that the negative market reaction to the updated trading guidance provided by Barclays on 30 June may therefore have been overdone," the broker said in a preview published last week.

Also on Thursday, the aircraft-services group BBA Aviation is due to post its interim figures. Analysts expect the company to report £42.4m in underlying pre-tax profits, compared with £38.4m last year, while underlying earnings per share are expected to rise to 7.6p.

Results/Updates:Aviva, Barclays, BBA Aviation, Cobham, Ferrexpo, Ladbrokes, Millennium & Copthorne Hotels, Novae, Rio Tinto, RSA Insurance, Randgold Resources, Bellway and Unilever.

Friday

Results/Updates: Brammer, Catlin, Inmarsat, Old Mutual, Royal Bank of Scotland and Logica.

Economics Diary

Today

CBI SME trends survey

CIPS manufacturing PMI

Tomorrow

CIPS construction PMI

Wednesday

Shop price index for July

REC & KPMG report on jobs

CIPS services PMI

Thursday

Bank of England's Monetary Policy

Committee's decision on interest rates

and Quantitative Easing

Monthly car registrations report

Friday

Insolvency statistics for the second quarter

Producer prices report

Monthly industrial production figures

NIESR monthly GDP estimates

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
Supporting role: at the Supreme Court, Rhodes was accompanied by a famous friend, the actor Benedict Cumberbatch
booksPianist James Rhodes on the extraordinary legal battle to stop the injunction of his memoirs
Arts and Entertainment
Jesuthasan Antonythasan as Dheepan
filmDheepan, film review
Sport
Steven Gerrard scores for Liverpool
sport
Arts and Entertainment
Bob Dylan
art
News
ebookA unique anthology of reporting and analysis of a crucial period of history
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

Guru Careers: Software Developer / C# Developer

£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...

Neil Pavier: Management Accountant

£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...

Sheridan Maine: Commercial Accountant

£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...

Laura Norton: Project Accountant

£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...

Day In a Page

Sun, sex and an anthropological study: One British academic's summer of hell in Magaluf

Sun, sex and an anthropological study

One academic’s summer of hell in Magaluf
From Shakespeare to Rising Damp... to Vicious

Frances de la Tour's 50-year triumph

'Rising Damp' brought De la Tour such recognition that she could be forgiven if she'd never been able to move on. But at 70, she continues to flourish - and to beguile
'That Whitsun, I was late getting away...'

Ian McMillan on the Whitsun Weddings

This weekend is Whitsun, and while the festival may no longer resonate, Larkin's best-loved poem, lives on - along with the train journey at the heart of it
Kathryn Williams explores the works and influences of Sylvia Plath in a new light

Songs from the bell jar

Kathryn Williams explores the works and influences of Sylvia Plath
How one man's day in high heels showed him that Cannes must change its 'no flats' policy

One man's day in high heels

...showed him that Cannes must change its 'flats' policy
Is a quiet crusade to reform executive pay bearing fruit?

Is a quiet crusade to reform executive pay bearing fruit?

Dominic Rossi of Fidelity says his pressure on business to control rewards is working. But why aren’t other fund managers helping?
The King David Hotel gives precious work to Palestinians - unless peace talks are on

King David Hotel: Palestinians not included

The King David is special to Jerusalem. Nick Kochan checked in and discovered it has some special arrangements, too
More people moving from Australia to New Zealand than in the other direction for first time in 24 years

End of the Aussie brain drain

More people moving from Australia to New Zealand than in the other direction for first time in 24 years
Meditation is touted as a cure for mental instability but can it actually be bad for you?

Can meditation be bad for you?

Researching a mass murder, Dr Miguel Farias discovered that, far from bringing inner peace, meditation can leave devotees in pieces
Eurovision 2015: Australians will be cheering on their first-ever entrant this Saturday

Australia's first-ever Eurovision entrant

Australia, a nation of kitsch-worshippers, has always loved the Eurovision Song Contest. Maggie Alderson says it'll fit in fine
Letterman's final Late Show: Laughter, but no tears, as David takes his bow after 33 years

Laughter, but no tears, as Letterman takes his bow after 33 years

Veteran talkshow host steps down to plaudits from four presidents
Ivor Novello Awards 2015: Hozier wins with anti-Catholic song 'Take Me To Church' as John Whittingdale leads praise for Black Sabbath

Hozier's 'blasphemous' song takes Novello award

Singer joins Ed Sheeran and Clean Bandit in celebration of the best in British and Irish music
Tequila gold rush: The spirit has gone from a cheap shot to a multi-billion pound product

Join the tequila gold rush

The spirit has gone from a cheap shot to a multi-billion pound product
12 best statement wallpapers

12 best statement wallpapers

Make an impact and transform a room with a conversation-starting pattern
Paul Scholes column: Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?

Paul Scholes column

Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?