The Week Ahead: Thomas Cook and TUI travel with confidence

The FTSE 100-listed travel groups Thomas Cook and TUI Travel are due to update the market on Wednesday and Thursday respectively, and, despite concern about the state of consumer spending, analysts anticipate upbeat statements from both.

A recent survey of 200 travel agents by Dresdner Kleinwort found evidence of strong late bookings, less late discounting, upgrading to long haul and all-inclusive packages, and a pick-up in 2009 bookings.

"While such analysis is far from bullet-proof, the thrust of all responses was encouraging despite the macro backdrop," said Dresdner.

Landsbanki is also positive before the updates, anticipating news of strong trading. "We accept that investor attention may be more focused on 2009 but again we are more confident than most..." the broker said, noting that most of the pain will be absorbed by smaller tour operators, that demand should remain more resilient than some anticipate and that while demand may ease, supply should fall further.

"TUI Travel alone estimate that, between 2007 and 2009, they are reducing UK capacity by [around] 750,000 packages, [and] Thomas Cook will be a broadly similar number, giving a total fall of [around] 1.5 million packages against demand which, on highly pessimistic assumptions, could fall by 1.3 million packages," Landsbanki added.



TODAY: Amino Technologies, the Cambridge-based broadband network software and systems group, is due to publish interim results. As analysts at KBC Peel Hunt said in a recent preview note, in its trading update for the period ending in June the company "pre-announced a 'solid operation profit'" for the first half of the year, having moved into profitability in the second half of last year.

Results/Updates: Mapeley, Smurfit Kappa, Workspace and Amino Technologies.



TOMORROW: InterContinental Hotels, the hospitality group behind the Crowne Plaza and Holiday Inn hotels and resorts, is due to publish interim results. After the company's change of reporting currency, this will be the first set of results in US dollars. Citigroup is anticipating news of $233m in pre-tax profits, ahead of the consensus estimate of $229m.

"Following the recent reduced guidance from US peers, we believe there is downside risk to consensus estimates," the broker said, adding: "That said, we believe this should be largely anticipated by the market."

Results/Updates: Collins Stewart, Maxima Holdings, Thomson Reuters, Weir and InterContinental Hotels.



WEDNESDAY: The services, maintenance and build-ing group Interserve is due to publish first-half results mid-week. UBS forecasts £951.7m in sales, compared with £889.6m in the first half of 2007, with an operating profit of £32.8m, compared with £29.2m last year. Earnings per share are expected to come in at 15.9p, against 15.8p last year. "The company has continued to win contracts across all divisions during the first half of this year," UBS said. "We believe that the order book will be around £6bn for the group, with the most rec-ent win the new PFI project with John Laing for the MoD."

Elsewhere, the broker anticipates a slight increase in the group margin, noting the change in the Equipment Services business, where the investment in South African deports is expected to begin to bear fruit.

Also on Wednesday, the infrastructure group Balfour Beatty is due to publish half-year results. A consensus of 11 analysts anticipates pre-tax profits of £91m. Looking ahead, analysts are positive about the company's prospects. Landsbanki, which recently initiated coverage on Balfour's stock with a "buy" rating, noted that the depth and the global spread of the company's assets were key attractions, "widening growth potential by providing access to markets that move in different cycles".

"Balfour Beatty is very well placed to grow in its chosen markets," the broker said. "While the business is complex, so too are the solutions [the company] provides. We believe the group's core skills, improving visibility and diversity of end-markets add to its investment case.

"With scope to move in to a number of related infrastructure/asset service areas, the future looks bright."

Results/Updates: British Energy, Micro Focus International, Balfour Beatty, Interserve and Thomas Cook.

Thursday: Phoenix IT, the small cap IT services group, is due to publish an interim management statement later this week and Panmure Gordon is anticipating "favourable market commentary".

"It is likely to give a positive view on the ICM acquisition and reaffirm current year synergy savings of £1.7m, with total synergies of £5.5m in the year to 31 March 2009," the broker said.

"We retain our niggling reservations about the outlook for the mid-market Servo division – which is diluting group operating profit margins – but in our view the business continuity and Partner division are both likely to be described as trading in line with management expectations."

Results/Updates: Bellway, Logica, Lincat, Phoenix IT and TUI Travel.

Friday: Results/Updates: None.

PROMOTED VIDEO
News
ebooksAn unforgettable anthology of contemporary reportage
Life and Style
tech

Board creates magnetic field to achieve lift

News
There have been various incidents of social media users inadvertently flouting the law
news

Life and Style
Stack ‘em high?: quantity doesn’t always trump quality, as Friends of the Earth can testify
techThe proliferation of online petitions allows us to register our protests at the touch of a button. But do they change anything?
News
Bourgogne wine maker Laboure-Roi vice president Thibault Garin (L) offers the company's 2013 Beaujolais Nouveau wine to the guest in the wine spa at the Hakone Yunessun spa resort facilities in Hakone town, Kanagawa prefecture, some 100-kilometre west of Tokyo
i100
Sport
CSKA Moscow celebrate after equalising with a late penalty
footballCSKA Moscow 2 Manchester City 2: Premier League champions let two goal lead slip in Russia
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

Trainee Recruitment Consultant Birmingham

£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...

Trainee Recruitment Consultants

£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...

Helpdesk Analyst

£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...

Senior Helpdesk Analyst / Service Desk Co-ordinator

£27000 per annum + pension, 22 days holiday: Ashdown Group: An established ind...

Day In a Page

Indiana serial killer? Man arrested for murdering teenage prostitute confesses to six other murders - and police fear there could be many more

A new American serial killer?

Police fear man arrested for murder of teen prostitute could be responsible for killing spree dating back 20 years
Sweetie, the fake 10-year-old girl designed to catch online predators, claims her first scalp

Sting to trap paedophiles may not carry weight in UK courts

Computer image of ‘Sweetie’ represented entrapment, experts say
Fukushima nuclear crisis: Evacuees still stuck in cramped emergency housing three years on - and may never return home

Return to Fukushima – a land they will never call home again

Evacuees still stuck in cramped emergency housing three years on from nuclear disaster
Wildlife Photographer of the Year: Intimate image of resting lions claims top prize

Wildlife Photographer of the Year

Intimate image of resting lions claims top prize
Online petitions: Sign here to change the world

Want to change the world? Just sign here

The proliferation of online petitions allows us to register our protests at the touch of a button. But do they change anything?
Ed Sheeran hits back after being labelled too boring to headline festivals

'You need me, I don’t need you'

Ed Sheeran hits back after being labelled too boring to headline festivals
How to Get Away with Murder: Shonda Rhimes reinvents the legal drama

How to Get Away with Murder

Shonda Rhimes reinvents the legal drama
A cup of tea is every worker's right

Hard to swallow

Three hospitals in Leicester have banned their staff from drinking tea and coffee in public areas. Christopher Hirst explains why he thinks that a cuppa is every worker's right
Which animals are nearly extinct?

Which animals are nearly extinct?

Conservationists in Kenya are in mourning after the death of a white northern rhino, which has left the species with a single male. These are the other species on the brink
12 best children's shoes

Perfect for leaf-kicking: 12 best children's shoes

Find footwear perfect to keep kids' feet protected this autumn
Anderlecht vs Arsenal: Gunners' ray of light Aaron Ramsey shines again

Arsenal’s ray of light ready to shine again

Aaron Ramsey’s injury record has prompted a club investigation. For now, the midfielder is just happy to be fit to face Anderlecht in the Champions League
Comment: David Moyes' show of sensitivity thrown back in his face by former Manchester United manager Sir Alex Ferguson

Moyes’ show of sensitivity thrown back in his face... by Ferguson

Manchester United legend tramples on successor who resisted criticising his inheritance
Two super-sized ships have cruised into British waters, but how big can these behemoths get?

Super-sized ships: How big can they get?

Two of the largest vessels in the world cruised into UK waters last week
British doctors on brink of 'cure' for paralysis with spinal cord treatment

British doctors on brink of cure for paralysis

Sufferers can now be offered the possibility of cure thanks to a revolutionary implant of regenerative cells
Ranked seventh in world’s best tourist cities - not London, or Edinburgh, but Salisbury

Lonely Planet’s Best in Travel 2015

UK city beats Vienna, Paris and New York to be ranked seventh in world’s best tourist destinations - but it's not London