Investors returning from the Bank Holiday weekend will be able to run the rule over results from several bellweathers, such as telecoms equipment firm Spirent and hotels group Hilton.
Telecoms group Spirent revealed its revenues and margins were still behind the levels seen a year ago in a brief trading update last month and it is likely to report a sharp fall in first half profits on Tuesday.
Fund manager Gerrard believes Spirent’s interim pre-tax profits will come in at £31.5m, down from £58.2m last year, with the group unlikely to offer much encouragement about its hopes for the coming months.
The best barometer of the group’s thoughts on a recovery is likely to be its dividend payout – Spirent has so far maintained its dividend payments despite the poor trading conditions.
Packaging specialist Rexam may well give a clue about the timing of future expansion when it presents interim results on Thursday just months after completing a programme of non-core disposals.
The group became the world’s biggest beverage can maker two years ago when it bought American National Can in the US and could be poised for further investment in Russia and Spain.
While Rexam’s recent disposals will leave pre-tax profits at £103m,down from £121m, analysts expect profits in the beverage packaging arm to move ahead strongly with margins likely to have increased from 8.2% to 9%.
Hilton Group is expected to reveal the impact of the sluggish economic recovery on its hotels business by reporting a 10% fall in first-half profits to around £135m on Thursday.
While the group’s Ladbrokes betting arm has prospered from changes to the betting law and the recent World Cup, optimism on the prospects for the hotels division has dissipated as the economic uncertainty continues.
Those hotels dependent on leisure visitors such as Hilton’s regional UK sites are likely to have held up relatively well but analysts will be keen to hear the group’s outlook for business in gateway cities.
Analysts will be hoping Anglo-Dutch computer services group CMG offers a glimmer of hope that IT services demand is on the mend when it reports interim figures on Thursday.
Three months ago CMG warned revenues at its core IT services business could be flat in the first half but the City fears demand has remained weak, particularly in its core Benelux markets.
Question marks also continue to surround the prospects for the group’s text messaging software arm given growing competition from the likes of Ericsson and Nokia. First-half profits are forecast to fall 8% to £16.5m.
Harpic-to-Haze firm Reckitt Benckiser’s detailed trading update last month – signalling strong sales of its range of air fresheners, detergents and dishwasher powder – means there are likely to be few surprises in its half-year results.
Despite poor trading in Latin America and China sales in the second quarter of the year are thought to have increased 5% and analysts believe profits for the period will climb to £135m – up 11%.
Reckitt announces its results on Thursday and is likely to outline a number of product launches for the second-half as well as further guidance on how close it expects to be to its full-year targets.
Sir Clive Thompson will announce his last set of results as chief executive of pest control-to-security group Rentokil on Thursday – and he is expected to leave his position on a high note.
Fund manager Gerrard predicts first half profits will hit at least £190m – up 9% on last year with strong growth in security, facilities management and parcel delivery.
Sir Clive is to take a beat seat and become chairman in January after 20 years in charge of the business, with current development director James Wilde stepping into his shoes.
EGi News 27/08/02
