The week ahead...
12th September 2014 15:57
by Harriet Mann from interactive investor
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Monday 15 September
kicks off the week with results for the six months ended 30 June 2014.
Analysts' expectations: EKF did well last year, but things haven't gone so well since it bought Selah, Diaspect and STI earlier this year. It's already flagged a 12% increase in half-year revenue to £16.7 million, despite a £1 million exchange rate hit. It will need a strong second half if it's to meet full-year forecasts, but Paul Cuddon at Peel Hunt says June has gone well which "offers hope that forecasts may not need downgrading."
"EKF's diversified diagnostics strategy has multiple growth drivers and, while we expect the market to remain somewhat cautious over 2014, we look for signs that EKF's competitive position remains robust, particularly in molecular diagnostics," says Cuddon.
Trading statements
SimiGon, Bond International Software, Reach4Enternainment Enterprises, Sphere Medical Holding, Quixant, M.P. Evans Group, Mysale Group, SKIL Ports & Logistics.
AGM/EGM
Rockhopper Exploration, Action Hotel.
Tuesdsay 16 September
Under-pressure retailer delivers fourth-quarter numbers on Tuesday, although the fire at its Barnsley warehouse in June is expected to have singed the numbers.
Analysts' expectations: John Stevenson at Peel Hunt reckons a potential sales hit of £30 million "seems reasonable." That implies growth of about 11% compared with initial expectations of 25% to £260.7 million. Not good.
"Forecasts for full year 2015 are looking stretched in our view, with the market looking for a c50% bounce-back in earnings," says Stevenson. "While full year 2014 expectations are likely to be delivered, backed up by any insurance claim, we may start to see full year 2015E downgrades at fourth quarter and the full-year results."
Trading statements
Thalassa Holdings, Mar City, e-Therapeutics, LiDCO Group, Silence Therapeutics, TLA Worldwide, Porta Communications, Christie Group, IQE.
AGM/EGM
Daisy Group, Societatea Nationala De Gaze Naturale, NCC Group, HML Holdings, Acron.
Wednesday 17 September
Publishing its pre-close statement on Wednesday will be , the British media conglomerate.
Analysts' expectations: After its third-quarter statement in July showed trading in-line with expectations with underlying revenue growth of 3% for the period and 5% for the nine months to June, Westhouse Securities does not expect a divergence from the trends witnessed in the fourth quarter, but does hope for improvement in advertising revenues.
Westhouse analyst Roddy Davidson reckons DMGT's fourth quarter results will show revenue growth for the full-year of 7% to £1.9 billion, pre-tax profit growth of 7.4% to £284.4 million and 7% growth in earnings per share (EPS) to 53.3p. He also pegs a dividend increase to 20.6p.
With an 'add' recommendation and 960p target price, Davidson said: "We are encouraged by the positive trading momentum reported by DMGT so far this year and by the progress being made complementing a high-quality portfolio of B2B businesses with an increasingly digitally focused media division.
"We forecast an attractive EPS and DPS outlook and strong cash generation and view the group’s current valuation as undemanding despite a recent improvement in share price performance," he adds.
Trading statements
ServicePower Technologies, Mi-pay Group, Xlmedia, Transense Technologies, Real Estate Investors.
AGM/EGM
Sefton Resources, Smiths Group, John Swan & Sons, Marwyn Value Investors Limited.
Thursday 18 September
With the Scottish referendum set to eclipse all other news, Thursday could be a good day to bury bad news. And there are certainly plenty of statements due out.
Among them is , which updates the market with its preliminary final results.
Analysts' expectations: Westhouse Securities' Roddy Davidson believes this is an "important" update for the company, and after a strong third quarter he will be looking for improvement in its Healthcare and Legal business - although he does doubt this will occur - and evidence that transferring its Business Intelligence activities from print to digital are on track.
He pegs full-year revenue to rise by 7% to £90.6 million, adjusted pre-tax profit to see growth of 12% to £16.3 million and EPS to be boosted by 12% to 14p. He also reckons shareholders may enjoy the first boost to dividend since 2008, with a rise of 3% to 7.2p.
Due to acquisitions, net debt is expected to be higher than the same time last year, at £37 million.
Davidson says: "We like the quality of Wilmington’s portfolio of B2B brands, exposure to markets that should offer structural growth, cash-generative qualities, positive EPS growth prospects (WSL (e) 36% aggregate growth over three years), and were encouraged by the positive headline momentum highlighted above.
"That said, the group's stock has ticked up from 197p since we upgraded our recommendation to 'add', partly reversing earlier weakness (-20% in the three months preceding this move) and taking it close to our target level. We will therefore use these results as an opportunity to assess whether we need to moderate our view."
He maintained his 'add' rating with a 218p target price.
will also release full-year preliminary results on Thursday.
Analysts' expectations: Costs will be the main focus of the update, after the miner reported production of 3.11 million carats (Mcts) and revenue of $472.6 million. But Westhouse Securities analyst Rob Broke reckons the results will be in line with guidance already given, with net debt at $125.6 million.
A 122.5 carat blue diamond was discovered recently, and Broke will look for further information regarding valuations. With a 230p target price, he has a 'buy' recommendation on the stock.
Last to report on Thursday will be , the construction, services and property company.
Analysts' expectations: In its full-year results, Westhouse Securities analyst Alastair Stewart expects the recovery in the construction industry to be confirmed.
"One of our key investment cases is Kier’s conservative business model," says Stewart, "which we believe has helped it avoid contractual problems that have contributed to, for instance, Balfour Beatty’s high-profile spate of profit warnings.
"We will be looking for reassuring progress on the May Gurney integration and opportunities for the Property division. Although orders are likely to pick up in Construction, we believe margin recovery will take longer," he adds.
Stewart reckons cash flow will soon turn positive, with 2014 being the last year in its current cycle of using cash for working capital. In the next financial year, Stewart believed Kier's investment in property and progression will help working capital movements start to write down debt.
He rates the company 'buy' with a 2110p target price.
Trading statements
Premier Farnell, Summit Germany Limited, French Connection Group, Wilmington Group, Sinclair IS Pharma, Petra Diamonds.
AGM/EGM
Octagonal.
Friday 19 September
Trading statements
Songbird Estates.
AGM/EGM
Vectura Group.