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Week Ahead 12-16 November

A summary of key company announcements expected in the coming week
November 9, 2012

Welcome to the week ahead, our summary of the forthcoming key company announcements. Companies are no longer obliged to notify the London Stock Exchange (LSE) of results and trading updates, so this list does not claim to be comprehensive. You can read company announcements on at http://announce.ft.com and our daily online news summaries record all key company announcements and business press headlines.

 

Monday 12 November

Interims: Aveva, Latchways, Wincanton

Finals: Carrs Milling

Trading statements: Bovis Homes, Catlin, Cobham, Derwent London, Dignity, Gem Diamonds, Interserve, Kingspan, Taylor Wimpey

AGM: Redrow

EGM: Queenco Leisure International

 

Tuesday 13 November

Interims: hibu, Norcros, Oxford Instruments, Synergy Healthcare, TalkTalk Telecom, Trifast, Vodafone, Workspace

Trading statements: Afren, Atrium European Real Estate, Capita, Cineworld, CRH, ITV, John Menzies, Johnston Press, Persimmon

AGMs: Global Petroleum, Pure Wafer

Economics: Producer price index, Consumer price index, Retail price index, Royal Institution of Chartered Surveyors house prices

Vittorio Colao, Vodafone’s (VOD) chief executive, isn’t shy when criticising regulators. In recent years, he has repeatedly complained that European regulators are on ‘auto-pilot’, routinely tinkering with mobile termination rates and roaming pricing. And when Vodafone announces its half-year results on 13 November, more sharp words could be likely.

Regulatory pressure is certainly evident. UK telecoms regulator Ofcom has controversially allowed Everything Everywhere to gain a ‘4G’ head start, leaving Vodafone and others watching from the sidelines. Moreover, since 1 July, retail data roaming pricing across the EU has been regulated for the first time.

Operational pressures exist, too. In India, tax law amendments mean the spectre of a $2.2bn tax bill has reappeared - some think Vofafone could make a provision at the half-year stage to cover the legal risks there. There’s also anxiety about its embattled operations in southern Europe and growing pessimism over prospects for another bumper dividend from Verizon Wireless – the US wireless giant in which Vodafone holds a 45 per cent stake.

Still, the figures could reveal continued growth in Turkey and India. Growth in mobile data revenue would also be welcome, but that’s unlikely to be spectacular. The difficult economic backdrop means that Mr Colao will need to show solid progress on network sharing and other cost-cutting measures to impress investors, too. An update on Vodafone’s £1.3bn acquisition of Cable & Wireless Worldwide is also expected. Analysts at Sanford Bernstein anticipates only a modest 2 per cent rise in Vodafone’s full-year adjusted EPS to 15.25p.

Wednesday 14 November

Interims: Blinkx, Carphone Warehouse, Great Portland Estates, ICAP, Sainsbury (J), Speedy Hire, Scottish and Southern Energy

Final: United Drug

Trading statements: AMEC, Barratt Developments, Candover Investments, Centaur Media, Kier, Moneysupermarket.com, New World Resources, Pace, Prudential, Serco, SIG, Tribal Group, Tullow Oil

AGMs: Allergy Therapeutics, Barratt Developments, Centaur Media, Hansard Global. Wilmington Group

EGM: Dragon Ukrainian Properties

Economics: Employment data, Average earnings, Bank of England inflation report

 

Scottish and Southern Energy (SSE) is unlikely to pull any rabbits out of the hat ahead of major regulatory decisions in the UK energy sector. In the next eight weeks both the energy bill is due in Parliament and final proposals under the RIIO framework will be announced by industry regulator Ofgem. Media coverage will undoubtedly fulminate over SSE's profits as the company guided on a strong recovery, which will incense customers following the 9 per cent price increases at the end of August.

Investors should instead focus on underlying numbers, which will provide a better picture. In a pre-close trading statement management guided towards adjusted pre-tax profits of around £386m - similar to the first half of 2010 and a strong recovery from the £287m profit reported in the six months to end-September 2011. All three segments - networks, retail and wholesale - have been profitable in the latest six-month period.

Given the current war of words between the coalition partners on wind turbines an update on the regulatory picture will be key given SSE's major investment in wind and hydro generation, also any further investment plans will be helpful. SSE has stuck to its dividend policy of increasing the payout by at least RPI plus 2 per cent for the year ahead and there should be no surprises here.

 

Thursday 15 November

Interims: 3i, Atkins (WS), Invensys, Investec, National Grid

Final: Euromoney Institutional Investor

Trading statements: Amlin, Antofagasta, BBA Aviation, Centrica, Hill & Smith, Keller, Lavendon Group, Premier Oil, Resolution, Rexam, Unite, UTV Media

AGMs: El Oro, Kier, Ricardo, Thorpe (FW)

Economics: Retail sales

 

National Grid (NG) investors will once again be reminded that the largest listed utility in the UK also has extensive operations in areas of the US. Grid's electricity and gas business in New York state and New England is unlikely to have escaped unscathed after Hurricane Sandy roared up the east coast. Although too early to quantify the full extent of the damage, an update will be expected.

As a guide, Martin Brough, analyst at Deutsche Bank, says Hurricane Irene last year cost around $100m (£69m), and a similar cost could hit current year EPS by up to 3 per cent. He adds that while negative for sentiment, shareholder value should be protected as costs are recoverable from the regulator in future years.

Another storm, this time purely man-made and economic in nature, has been the main driver behind investors flocking to Grid's inflation busting dividend and asset backing. The shares are now within touching distance of 2008's record high of 779p. Grid currently has a one-year dividend policy in place - an increase of 4 per cent - and while clarity on a multiyear policy would be welcome, it is highly unlikely ahead of some major regulatory announcements. Investors should instead look for an update on regulatory progress in the US where rate filings are under way for Rhode Island and upstate New York; back on home shores, an update on final proposals under the RIIO framework due from regulator Ofgem in December will be key.

 

Friday 16 November

Interims: London Stock Exchange, Record

Trading statements: Bodycote, Clarke (T), Headlam, IMI, Melrose, Rotork, Serco, Ultra Electronics

AGMs: Albemarle & Bond, Cash Converters, Celtic, Dunelm, Helphire, Ultimate Finance

Shares going ex-dividend on 14 November

CompanyDividend (p)Payment
Air Partner 12.714 Dec
Downing Absolute Income VCT I2.014 Dec
Edinburgh Dragon Trust 2.214 Dec
GlaxoSmithKline 1803 Jan
Home Retail 1.023 Jan
Inland Homes0.06717 Dec
JPM Smaller Cos IT 9.007 Dec
Lok'N Store Group 4.017 Dec
Panther Securities 3.030 Nov
Picton Property Income0.7530 Nov
Royal  Dutch Shell  B 26.720 Dec
Royal Dutch Shell A 26.720 Dec
Sherborne Investors A0.918 Dec
Tristel 0.3514 Dec
UK Commercial Property 1.312530 Nov

The ex-dividend date is the first day on which it is no longer possible to buy the shares and qualify for the dividend. Ex-days are almost always a Wednesday. The record date is usually two days after the ex-date. The payment day is the day on which the funds are transferred to shareholders.