Companies reporting this week

By THIS IS MONEY
Updated:

 

TELECOMS group Thus should present the market with few surprises in its full-year results on Tuesday, given its positive statement before it entered its close period, broker Investec says.

The company is expected to report earnings before interest, tax, depreciation and amortisation of goodwill (EBITDA) of £44.1m against £27.1m previously. Investec said it was expecting higher revenues from the company's second half partly due to exceptional growth in DSL broadband.

It is likely to have been a tough second half for the call centre division, but growth elsewhere, including the higher margin facilities management area, should have more than compensated.

Analysts are not expecting easyJet to move into profit when it posts its half-year results on Wednesday, predicting the budget airline to break even or record losses of up to £25m.

But any improvement on losses of £24.4m that it posted at the same stage a year ago will be taken as a positive sign that the aviation industry is continuing to improve after a turbulent couple of years.

Passenger numbers have already been reported as growing and the increase in capacity is known, so fund manager Gerrard said the most important variables are the average fares and costs.

The results should also be an opportunity for easyJet to demonstrate that it has a different product to Ryanair and will not be affected by the EU ruling on deals between its rivals and state-owned airports.

Leisure giant Whitbread offered investors encouragement in February by reporting that sales growth of 2.4% was achieved in the first 50 weeks of the year - in line with expectations.

Full-year profits of £240m are expected on Wednesday against £222m a year ago, with the strongest performances from David Lloyd Leisure, Beefeater restaurants and Travel Inn hotels.

The market will focus on trading at its Marriott hotel chain after an easing of the severe downturn that affected the industry over the past year was reflected in a slower rate of sales decline.

Investors will also want to know the group's intentions towards the acquisition of the Premier lodge budget hotel chain, which is up for sale and would fit well with its Travel Inn arm.

Broker Tether & Greenwood expects Lake District brewing and pubs group Jennings Brothers to increase full-year pre-tax profits to £2.75m this year from £2.5m a year ago on Thursday.

The broker said Jennings was poised for steady earnings growth for the foreseeable future, which could be enhanced by an acquisition in a consolidating industry.

The progress should be driven principally by the stability and resilience of the group's tenanted and leased houses and supported by its brewing business, which makes Cumberland Ale.

In Jennings' case, these basic attributes are being augmented by the improved quality of the estate through acquisitions of individual sites and major refurbishments.

The gradual increase in the number of houses, currently 71%, on the longer lease InnVentures scheme, which allows the lessee to share in the improved value of the outlet, will also help.

'The shares are unlikely to race away after a good run of late, but they represent solid medium-term value,' Tether & Greenwood said.

Discount clothing retailer Matalan warned in December that annual profits would fall 'materially short' of market expectations.

This was followed by a disappointing Christmas, with tough trading conditions resulting in greater discounting than had been planned. The group was forced to start offering reductions before the holiday.

Analysts say the group is still struggling to regain like-for-like sales momentum despite recent management changes.

Matalan is expected to post final pre-tax profits of around £61m when it updates investors on Wednesday, compared with £117.4m last year.

Energy generator International Power is expected to report lower first quarter profits at its European operations when it updates the market on Thursday.

Analysts believe the London-based company's operating profits will be down, mainly due to the ongoing weakness in its North American market.

The North American division is expected to remain in loss, while profits from Australia and the rest of the world will be more or less flat.

Pre-tax profits for the quarter are expected to be £40.3m, down from £48m last time. The group is unlikely to comment on bid rumours which have been circulating in the press, a broker said.

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