Tuesday preview: Sage, PZ Cussons, UK GDP

25th Jan 2010 13:36

The share price of Newcastle-based accountancy software firm Sage is floating around its 52-week high ahead of tomorrow’s first quarter interim management statement.The company saw market conditions stabilise in the second half of its previous financial year and broker Panmure Gordon, a long time fan of the stock, thinks the company will report more of the same with trading in line with expectations.The broker notes that the comparative figures for Europe a year ago are demanding, given that Europe moved into the downturn later than other regions, but the situation in the US is improving while ‘paying down debt brings M&A [mergers & acquisitions] back on the agenda.’Paul Stobart, the managing director of Sage’s UK operations, said in a recent interview with the Financial Times that Sage’s customers are ready once more to ‘invest in marketing, brand-building and IT, and to invest generally to grow the business as the cycle unwinds.’Imperial Leather soap maker PZ Cussons is expected to announce interim results that are in line with management expectations. Strong performance in Europe and Asia ought to offset any continued adverse impact of adverse exchange rates on the Nigerian operations’ performance. Stockbroker Numis expects online gaming group Playtech to issue a solid update after rival 888 reported strong fourth quarter trading.Turning to overseas companies, consumer electronics maker Apple issues figures after the bell on Monday and is also widely expected to unveil a new touch-screen tablet computer on Tuesday. Swiss pharmaceuticals giant Novartis also releases results as does semiconductor giant STMicroelectronics.On the economic front the UK’s long awaited emergence from recession may finally arrive as fourth quarter data for 2009 gross domestic product (GDP) are released. Economists were caught on the hop in the third quarter when the UK economy unexpectedly continued to contract but that has not stopped them from confidently predicting that GDP improved in the October to December period from the previous quarter.Expectations are for a quarter on quarter rise of around 0.4%, though that would still leave GDP just under 3% lower than a year earlier; this would still represent a handsome improvement on the 5.1% year on year decline seen in the third quarter.INTERIMSAshley House, PZ CussonsINTERIM DIVIDEND PAYMENT DATECarpathian, RPC GroupINTERNATIONAL ECONOMIC ANNOUNCEMENTSBalance of Trade (EU) (10:00)Consumer Confidence (EU) (10:00)Consumer Spending (FRA) (07:45)IfO Business Climate (GER) (09:00)IfO Current Assessment (GER) (09:00)IfO Expectations (GER) (09:00)Consumer Confidence (US) (15:00)House Price Index (US) (15:00)Richmond Fed Manufacturing Index (US) (15:00)Corporate Service Price Index (JPN) (23:50)Bank of Japan Target Rate (JPN) Small Business Confidence (JPN)Current Account (EU) (09:00)Existing Home Sales (US) (15:00)TRADING STATEMENTSevern TrentFINALSPorvairAGMSDiscover Leisure, Next Fifteen Communications, Schroder UK Mid & Small Cap Fund, Siemens AGTRADING ANNOUNCEMENTSIntermediate Capital Group, Playtech, SageUK ECONOMIC ANNOUNCEMENTSGDP (Preliminary) (09:30)Nationwide House Prices