The week ahead...

Fiona Bond
20.11.09 17:30

It could prove to be a wet week ahead for utility companies Severn Trent (SVT) and United Utilities (UU-) when they post their financial results following what has been a rocky year for the sector.

First to step into the firing line will be Severn Trent which releases its interim results on Tuesday. In an earlier trading update, the company indicated that the decline in consumption levels seen last year will continue and could knock �15-20 million off profits this year.

Next up will be United Utilities which is set to release its interim results on Wednesday. Revenue growth is expected to be lower than the 6% allowed price rise for 2009/10 as dwindling demand takes its toll.

Tina Cook, analyst at Charles Stanley, said: "Underlying operating profit in the regulated business is expected to be broadly in line with the first half of last year reflecting ongoing revenue and cost pressures such as power and bad debts as well as an increase in depreciation."

Utility companies have proved less attractive for investors who have been hungry for stocks with more aggressive capital growth. However, not many surprises are pegged for the six-month update, with all eyes eagerly awaiting the arrival of the Water Services Regulation Authority review out at the end of this month.

Also up on Wednesday is chemical company Johnson Matthey (JMAT). The company interim results are expected to be adversely affected by the strong Rand and rising utility costs. In addition, auto sales were weak and platinum group metal prices suffered a sharp drop throughout the year. With a fall in profits already alluded to, the real interest lies in the company's forecast.

See what the City without a suit makes of the chemicals firm in our iBall TV episode on Johnson Matthey.

The European automotive industry has been buoyed by considerable government stimuli of late but with this set to tail off in 2010, investors will be keen to see Johnson Matthey's plans to tackle this.

Jeremy Batstone-Carr, analyst at Charles Stanley, commented: "To some extent, potential weakness in Europe and the US should be offset by rising car production in Asia, illustrating the truly global scale of JM's business. Elsewhere, JM is likely to have benefitted from the recent strength in platinum group metal prices as commodity prices generally react to investor/speculator interest as the dollar falls."

Another metals maestro, Antofagasta (ANTO) will release its third-quarter results on Thursday. The mining company recently released a production report highlighting a drop in copper output over the last three months. Investors will be eager to see what the company is now doing to make up the falling production rate and see if any improvements have been made.

For an alternative investment view on Antofagasta, watch our iBall TV episode on the miner.

Finally, pub group Mitchells & Butlers (MAB) will report its full-year results on Thursday. Following a flurry of brewery results this week which hailed 2010 as a year for caution, Mitchells & Butlers is expected to report a 25% fall in profits for this year and remain wary of next year's trading environment.

On an economic front, Nationwide will kick off the week with its November house prices. On Tuesday all eyes will be on the US GDP second estimate figures. Initial estimates by the US Bureau of Economic Analysis were for 3.5% growth. There is a chance the figure will be below this number but the markets could still react positively in the hope it could spur on the Fed to implement further monetary policy.

On Wednesday, the UK steps into the spotlight with its own Q3 GDP second estimate figures. The provisional estimate was for a 0.4% contraction.

John Higgins of Capital Economics said: "We suspect the number will be revised up a bit, but that won't change the picture of an economy operating way below its trend level of output."

On Thursday, the latest Confederation of British Industry (CBI) distributive trades survey will provide a good indication of how the high street is faring. With the latest British Retail Consortium survey suggesting a 3.8% rise in like-for-like sales in the year to October, hopes are pinned on CBI's survey to reaffirm the momentum.

CBI will also release its quarterly distributive trade survey for the UK on Thursday.

Interactive Investor will be heading up to Birmingham for the Lloyds Banking Group (LLOY) AGM on Thursday. Make sure you keep an eye out for our inside view of events.

Monday 23 November

Results

(Finals) Armour Group, RM Group

(Interims) Mitie Group, Northumbrian Water Group, Phoenix IT Group, Proventec, RM Group

(Quarterly) Espirito Santo

AGMs

Gold Oil

EGMs

Naya Bharat Property Company

Dividend payment date

(Final) Edge Performance VCT 'D' Shares, New Star Inv Trust

Tuesday 24 November

Results

(Finals) 2 ergo Group, Education Development International, Topps Tiles

(Interims) Hamworthy, Heath (Samuel) & Sons, Homeserve, Iomart, KCOM Group, Severn Trent,

(Quarterly) Signet Jewelers

AGMs

Artisan, Discovery Metals, PureCircle, Tenon Group

Wednesday 25 November

Results

(Finals) Greencore Group, GW Pharmaceuticals, Superglass Holdings, Britvic, Compass Group

(Interims) Acal, GB Groyp, Liontrust Asset Management, London Stock Exchange Group, QinetiQ Group, Speedy Hire, Telecom Plus, United Utilities Group, Johnson Matthey

(Quarterly) Queen's Walk Investment Ltd., Sportingbet

AGMs

Aberdeen Asian Smaller Companies Inv Trust, BlueBay Asset Management, Finsbury Food Group, Sabien Technology, Thor Mining

EGMs

Hanson Westhouse Holdings

Dividend payment date

(Final) Stagecoach Theatre Arts

(Final Ex Dividend) A&J Mucklow, Advance UK Trust, Baronsmead VCT, Baronsmead VCT 2, Charteris, Diploma, Dunelm Group, Freshwater UK, Global MENA Financial Assets Ltd., ING Global Real Estate Securities, Invesco English & International Trust, JPMorgan Chinese Inv Trust, JPMorgan Elect Managed Growth Shares, Octopus Eclipse VCT 1, Octopus Eclipse VCT 3, Octopus Eclipse VCT 4, Renewable Energy Generation, Scottish American Inv Company, Ultimate Finance Group, Value Catalyst Fund Ltd.

(Interim) Albany Inv Trust, Charles Taylor

Thursday 26 November

Results

(Finals) Avacta Group, Avon Rubber, Mitchells & Butlers

(Interims) Assura Group, Helical Bar

(Quarterly) Antofagasta

AGMs

Animalcare Group, Berkeley Resources, BHP Billiton, Clinton Cards, Group NBT, Oilex Ltd., Pantheon International Participations, Ruffer Investment Company Ltd.

EGMs

JSM Indochina, Yell Group

Dividend payment date

(Interim) Collins Stewart, Toyota Motor

Friday 27 November

Results

(Finals) HolidayBreak

(Interims) Hogg Robinson, Invista Foundation Property Trust, Omega Diagnostics Group, RPC Group, Vectura Group, VP, Carphone Warehouse

AGMs

Anglo and Overseas Trust, Aquarius Platinum Ltd, Centamin Egypt, Feedback, Helphire Group, JPMorgan Smaller Companies Inv Trust

Dividend payment date

(Final) Abcam, Aberdeen Asian Small Companies Inv Trust, City Merchants High Yield Trust, CPL Resources, F&C Commercial Property Trust, Indigo Vision, ISIS Property Trust, Jourdan, JPMorgan Overseas Inv Trust, Kier Group, Manchester & London Trust, Mcbride, Ricardo Group, Swallowfield, Thorntons

(Interim) Booker Group, Harvey Nash Group, RSA Insurance Group, Scottish Mortgage Inv Trust, Ted Baker

(Quarterly) Equity Partnership Income Shares

The week ahead...

More Articles