The Week Ahead: Quadrise shares on course for new leap
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Investors turned detectives last month when an unexplained leap in alternative fuel producer Quadrise Fuels could not be explained by management. The group, which supplies fuel to global shipping, refining and steam and power generation markets, has been winning new contracts and recently signed a deal with Mærsk to supply it with fuel oil. Its results today could be another reason for the share price to rise.
Pork producer Cranswick is expected by analysts at Numis to report a strong second quarter. It is expected to include a period when it “enjoyed its highest sales of sausages” outside of Christmas, and Numis expects comparable sales in double digits.
Results/Updates: Cranswick, Quadrise Fuels, Waterman.
Tomorrow
Hiring and firing has been a difficult business during the financial crisis but in recent months recruiter Robert Walters has outperformed peers. Numis says: “The staffing debate is now turning towards recovery. While the timing and economic path is likely to remain uncertain, we believe that the investment made throughout the downturn in new offices will reap the rewards as end markets start to recover.” Numis forecasts comparable fee growth of 5 per cent. Shares have been the best-performing staffing major over the past three months, outperforming the wider market by 37 per cent, but Numis says it “remains a strong recovery play in the sector”.
Results/Updates: EKF Diagnostics, Ferrexpo, Robert Walters, Victrex.
Wednesday
Angela Spindler will preside over her first presentation as chief executive of home shopping group N Brown on Wednesday. Peel Hunt thinks there are a “number of compelling medium-term opportunities” such as international growth, new stores and a revamp of catalogue firm JD Williams. The Figleaves lingerie website owner is forecast to report half-year profit of £45.5m, up 8.3 per cent year on year. Numis expects “continued positive trading through the remainder of the period” and forecasts pre-tax profit of £46.5m. Analysts expect Spindler to give more detail on expanding its womenswear range, new UK stores, growth in the US and how she will grow the group to entice new, younger customers.
Results/Updates: N Brown, Centamin, Greggs, HG Capital, Marston’s, Vedanta Resources, Scapa.
Thursday
Stationer and chocolate bar retailer WH Smith will release its full-year results on Thursday – the first since former chief executive Kate Swann departed. New chief Steve Clarke is not expected to the rock the boat with any big changes. Cost-cutting and share buybacks are still on the agenda. Analysts at Barclays expect earnings per share growth of 12 per cent and say any sales declines will be offset by gross margin improvements.
Results/Updates: Air Partner, Ashmore, Hays, WH Smith, Immunodiagnostics Systems.
Friday
Investors hope RWS’s year-end update won’t be lost in translation on Friday. The translation specialist last month bought Inovia, which sees the group take on additional work. Numis analysts, who are concerned that currency fluctuations confuse the figures of the business, admit near-term trading is hedged at attractive rates. They think the business has a “very strong and defensible market position” as well as opportunities to gain market share. They expect growth in excess of 10 per cent.
Results/Updates: XP Power, RWS Holdings.
Economics diary
Today
EU final GDP, US consumer credit.
Tomorrow
British Retail Consortium sales monitor, Royal Institution of Chartered Surveyors’ house price balance, US economic optimism.
Wednesday
UK British Retail Consortium shop price index, industrial production data, manufacturing output figures, trade figures, National Institution of Economic & Social Research GDP estimate.
Thursday
Bank of England asset purchase target, base rate announcement, European Central Bank monthly bulletin, Federal Budget Balance.
Friday
Construction output, CB Leading Index, US retail sales and consumer sentiment data.
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