Wednesday preview: Next, Barratt, Galliford Try, Hargreaves Services

13th Sep 2011 16:13

Fashion retailer Next said last month that total sales rose 3.2% in the first half of the year, as strong growth in online sales offset a moderate decline in its shops. It also said it expects the cost price inflation environment to improve, but given recent market volatility, it will be interesting to see what it has to say about the overall economic environment.Charles Stanley is expecting Next to report a solid set of interim results, with profit before tax of £240m, up from £214m at the halfway stage last year. Earnings before interest, tax and amortisation are tipped to rise to £240m from £226m last year, on sales of £1,650m, up from £1,587m last year."Next Retail is forecast to report a 15% fall in operating profit to £105m. Total sales were down by 1.7% in the 26 weeks to 31st July, with like-for-like sales down by 3.4% and a 1.7% positive contribution from new space. Next Directory is forecast to report a 21% increase in operating profit to £122m. Total sales were up by 15.1% in the first 26 weeks, flattered slightly by an increased allocation of sale stock to the Directory," the broker reports.Outlook comments from Chief Executive, Lord Wolfson, will be closely analysed, the broker predicts. "We expect the UK retail environment to remain very tough over the next 18 months, reflecting higher taxes, sub-inflation wage growth and some uncertainty over future employment prospects. A melt-down in consumer expenditure, however, is not anticipated, given our belief that unemployment is close to the peak and our forecast that interest rates will remain at historic lows until at least the end of 2012. In such an environment, we expect Next's sales to be relatively resilient and believe the group can continue to progress both EPS [earnings per share] and the dividend," Charles Stanley said. Broker Panmure Gordon expects housebuilder Barratt Developments to report a pre-tax profit of £40.2m in its final results, with a 2% rise in average selling prices to £178,000 helping to offset a 1.8% fall in completions, to 11,171 houses.Peel Hunt is looking for a pre-tax profit of £40m, with net asset value coming in at 213p.Elsewhere in housebuilding, Peel Hunt thinks Galliford Try is "moving into a year of big delivery." It is predicting pre-tax profits of £34.8m. "We expect little deviation from the picture painted by the July pre-close," Peel Hunt says.Panmure Gordon expects AIM-quoted coal and transport services supplier Hargreaves Services to report a profit of £40m for the year, with earnings per share climbing by 34.1% to 101.4p. "We expect further strong progress from Hargreaves across all operations," the broker says."In particular we expect good news from Energy & Commodity operations as European expansion continues, and Production operations as higher prices and consistent levels of output drop to the bottom line."INTERIMSBond International Software, Gulf Keystone Petroleum Ltd. (DI), M. P. Evans Group, Modern Water, Next, OJSC Cherkizovo Group GDR (Reg S), Surgical Innovations GroupINTERIM DIVIDEND PAYMENT DATESt James's PlaceINTERIM EX-DIVIDEND DATE32Red, Antofagasta, Baronsmead VCT 3, Baronsmead VCT 4, Baronsmead VCT 5, Berendsen, Clarkson, Computacenter, Cookson Group, CPP Group, Edinburgh US Tracker Trust, Fyffes, GlobeOp Financial Services SA (DI), H&T Group, International Public Partnerships Ltd., Irish Continental Group Units, Logica, Molins, Pennant International Group, Rathbone Brothers, Restaurant Group, Savills, Stadium Group, T Clarke, Tamar European Industrial Fund Ltd., Temple Bar Inv Trust, Tex Holdings, Tikit Group, Treatt, UTV Media, Xstrata, ZotefoamsQUARTERLY PAYMENT DATEUnileverQUARTERLY EX-DIVIDEND DATEAlpha Pyrenees Trust Ltd.INTERNATIONAL ECONOMIC ANNOUNCEMENTSIndustrial Production (JPN)Capacity Utilisation (JPN)Industrial Production (EU) (10:00)MBA Mortgage Applications (US) (12:00)Business Inventories (US) (13:30)Producer Price Index (US) (13:30)Retail Sales (US) (13:45)Manufacturing Inventories (US) (15:00)Retail Sales Inventories (US) (15:15)Crude Oil Inventories (US) (15:30)GMSMedicsight, Northern 3 VCTFINALSAvingtrans, Barratt Developments, Brooks Macdonald Group, CPL Resources, Galliford Try, Hargreaves Services, RSM Tenon GroupEGMSJSC Sitronics GDR (Reg S)AGMSArtemis Alpha Trust, Datatec Ltd. (DI), ITM Power, Minera IRL Ltd., Mwana Africa, Northern 3 VCT, Stagecoach Theatre ArtsUK ECONOMIC ANNOUNCEMENTSClaimant Count Rate (09:30)Unemployment Rate (09:30)Average Weekly Earnings (09:30)FINAL EX-DIVIDEND DATEAnite, Baronsmead VCT, Baronsmead VCT 2, Best of the Best, Betfair Group, Cash Converters International Ltd. Units, Colefax Group, Dart Group, Falkland Islands Holdings, Goodwin Plc, Harmony Gold Mining Co Ltd., Henderson Smaller Companies Inv Trust, Impala Platinum Holdings Ltd., Jacques Vert, Kesa Electricals, Medusa Mining Ltd. (DI), Renishaw, Standard Life UK Smaller Companies Trust, Stewart & Wight