The week ahead...
30th August 2013 16:52
by Julie Fisher from interactive investor
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A raft of economic data will be released in the coming five days, alongside results from the likes of Dechra Pharmaceuticals.
Monday 2 September
Economic news
Monday sees the publication of the manufacturing purchasing managers' index (PMI) for August.
July's PMI rose 1.5 points to 54.6, its highest level since March 2011.
Although "other UK surveys of manufacturing output have been positive", Investec economist Philip Shaw suspects "UK manufacturing is not expanding at quite the pace suggested by the PMI".
He forecasts the index to hold steady at 54.6.
Trading statements
Biome Technologies, Michelmersh Brick Holdings, Berkeley Group Holdings.
AGM/EGM
Consort Medical, Mortice, Polar Capital Technology Trust, Berkeley Group Holdings.
Tuesday 3 September
will release its preliminary results on Tuesday.
Analysts' expectations: "Events subsequent to period-end will provide the most interesting new data points, with the disposal of the services business closing on 16 August," comments Savvas Neophytou, an analyst at Panmure Gordon.
"The company should provide clean results of continuing operations which will place a marker for forecasts going forward. In our view, consensus currently remains somewhat below our forecasts and we expect next week's events to provide a clear trigger for upgrades."
Neophytou forecasts revenue of £506.8 million, pre-tax profit of £45.4 million and adjusted earnings per share of 38.2p and rates Dechra a 'buy'.
Valuation: The veterinary products firm's stock trades on a 2013 price/earnings (P/E) ratio of between 15 and 16 times.
Economic news
On the economic front, the British Retail Consortium's Retail Sales Monitor for August will be released.
Hot weather led to the best July for retailers in six years according to the monitor, with total sales up 3.9% and a 2.2% like-for-like increase.
August was "more temperate", but still hot enough for the weather to boost food sales, according to Investec's Victoria Clarke, who forecasts a 3.7% year-on-year increase, 2% on a like-for-like basis.
Trading statements
Globaltrans Investment, Total Produce, @UK, Johnson Service Group, Goals Soccer Centres, Hydro International, McBride, Dechra Pharmaceuticals, DS Smith.
AGM/EGM
Downing Absolute Income VCT, Silvermere Energy, Avarae Global Coins, Midas Income & Growth Trust, Thor Mining, Greene King.
Wednesday 4 September
Economic news
August's services PMI will be released on Wednesday.
In a similar fashion to the manufacturing PMI, the services data was strong in July, reaching a 6.5-year high of 60.2.
Shaw forecasts a steady PMI of 60.2 for August, struggling to believe that services are expanding at a rate of 2% per quarter as recent surveys have suggested.
"Experience suggests that survey evidence can be out of kilter with official evidence for a while," he comments.
Trading statements
Staffline Recruitment Group, SQS Software Quality Systems, Smart Metering Systems, Ashtead Group, A & J Mucklow Group, Hargreaves Lansdown, Safestore Holdings.
AGM/EGM
Ashtead Group.
Thursday 5 September
Trading statements
Mail.ru Group, The Go-Ahead Group, Monitise, CPL Resources, SuperGroup, Spirit Pub, easyJet, Aer Lingus Group, Dixons Retail, Betfair Group.
AGM/EGM
Ortac Resources, ACM Shipping Group, Equatorial Palm Oil, Independent News & Media, Dixons Retail, Dart Group, Betfair Group, Carclo, Carpetright.
Friday 6 September
Economic news
Friday's economic reporting will kick off with the manufacturing output and industrial production figures for July.
"Despite the robust 1.9% monthly increase in manufacturing output in June, we expect to see a further monthly rise in June," says Clarke.
"We are pencilling in a further gain of 0.5% which would leave manufacturing output just 0.5% down year-on-year."
She also forecasts a 0.2% increase in industrial output, down 1.5% year-on-year.
"Such a set of outcomes would provide further evidence of the UK recovery becoming broader-based and show recovery momentum for the manufacturing sector intact at the start of the third quarter," Clarke concludes.
Also set for release on Friday are the figures for trade in goods and services for July. June saw a global trade in goods deficit of £8.1 billion.
"While UK export markets appear to be recovering, we suspect that much of the positive effect on the trade balance will be offset by firmer domestic demand from consumption and investment," comments Investec's Shaw.
"For July we are looking for a small further narrowing in the trade gap to £8.0 billion.
Trading statements
Belgravium Technologies, SThree.
AGM/EGM
Hayward Tyler Group, PowerHouse Energy, Centurion Resources, DQ Entertainment, Latchways, Circle Oil, X5 Retail Group.