LONDON (SHARECAST) - With the flurry of Christmas trading updates almost over, next week is looking relatively quiet on the corporate front, with newsagent WH Smith one of the last of the household names from the retail sector to report, when it has its annual general meeting on Wednesday.
In its November update WH Smith said sales in the first 10 weeks of its financial year were down 3%, with like-for-like sales (LFL) down 6% compared to the same period last year. Sales at WH Smith Travel – which has outlets in airports, train stations and motorway services, etc. – were down 4% year-on-year on a LFL basis, but the decline may have been arrested in December, given that in the corresponding month of 2010 sales would have been affected by the adverse weather conditions.
As for sales on the High Street – the group’s other division – these fell 6% on a LFL basis. This division might also benefit from soft comparatives from December 2010. Broker Peel Hunt has suggested that first half sales will be down 5% in the High Street retail business and 3.5% lower than a year earlier in the Travel division.
Aveva, the Cambridge based engineering information technology company, issues an interim management statement on Friday, and bearing in mind that sector peer Invensys recently issued a profits warning relating to delays to Chinese nuclear projects, Aviva may be keen to reassure that all is hunky-dory at its own Chinese nuclear operations.
Broker Panmure Gordon went so far as to contact Aveva to get the all-clear on China. “Aveva says that its China nuclear operations are on track – indeed, some may argue that Invensys told us about continual tweaks to the design and so may actually be a small positive for Aveva,” Panmure Gordon said.
“Following our queries, Aveva comments that its business has picked up in H2 [second half] following its reorganisation in China. The nuclear side of Aveva should be relatively unaffected, although budgets for the nuclear players should be smaller for the time being. The majority of spending is at the 'preparatory stage' and, of this, design is a big component. Aveva has, this year, received orders (and payments) from a diversified group of nuclear companies spanning designers and operators and expects the number to grow more this calendar 2012 year,” Panmure Gordon said.
On Tuesday, the minutes from the January meeting of the Bank of England’s Monetary Policy Committee (MPC) will be released. A gratifyingly large fall in UK inflation in December has given scope for the MPC to expand its quantitative easing (QE) programme some more without unduly fuelling inflation, but committee member Ben Broadbent recently said that the MPC has not yet made its mind up on this matter.
The QE (asset purchasing) programme was upped to £275bn in October from £200bn previously, and many economists think the Old Lady of Threadneedle Street will open the tap up a bit more next month as economic growth in the UK appears to be stalling, but speaking in an interview with Market News International, Broadbent said “I am free, have been free, at the subsequent meetings and will be free in the one in February, to vote as I see fit.”
Monday January 23
INTERIMS
City of London Investment Group
INTERIM DIVIDEND PAYMENT DATE
DS Smith
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Confidence Indicator (EU) (10:00)
AGMS
Alternative Networks, Avacta Group, John Lewis of Hungerford
TRADING ANNOUNCEMENTS
Dragon Oil
FINAL DIVIDEND PAYMENT DATE
Hargreave Hale AIM VCT 1
Tuesday January 24
INTERIMS
PZ Cussons, Zetar
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Industrial New Orders (EU) (10:00)
FINALS
Chemring Group
ANNUAL REPORT
Sinclair (William) Holdings
IMSS
International Ferro Metals Group, Land Securities Group, Sage Group
AGMS
Evocutis, Redefine International, Siemens AG
TRADING ANNOUNCEMENTS
Playtech Ltd.
UK ECONOMIC ANNOUNCEMENTS
Public Sector Finances (09:30)
Wednesday January 25
INTERIMS
Ebiquity, Renishaw
INTERIM DIVIDEND PAYMENT DATE
Latham (James)
INTERIM EX-DIVIDEND DATE
Anite, Fletcher King, IG Group Holdings, NCC Group, SSE
QUARTERLY PAYMENT DATE
Molex Inc., Molex Inc. 'A' Shares
QUARTERLY EX-DIVIDEND DATE
City of London Inv Trust, Merchants Trust
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Crude Oil Inventories (US) (15:30)
FOMC Interest Rate (US) (17:15)
House Price Index (US) (15:00)
IFO Business Climate (GER) (09:00)
IFO Current Assessment (GER) (09:00)
IFO Expectations (GER) (09:00)
MBA Mortgage Applications (US) (12:00)
Pending Homes Sales (US) (15:00)
IMSS
Britvic, Metric Property Investments
AGMS
Artisan, Britvic, GW Pharmaceuticals, Invesco Leveraged High Yield Fund Ltd., Polar Capital Global Healthcare Growth & Income Trust, Renew Holdings, WH Smith
UK ECONOMIC ANNOUNCEMENTS
BBA Mortgage Lending Figures (09:30)
BoE Interest Rate Minutes (09:30)
CBI Industrial Trends Surveys (11:00)
GDP (Preliminary) (09:30)
Index of Services (09:30)
FINAL DIVIDEND PAYMENT DATE
Diploma, Majedie Investments
FINAL EX-DIVIDEND DATE
Blackrock Frontiers Investment Trust, British Portfolio Trust, Compass Group, Gooch & Housego, Renew Holdings, Shaftesbury, Titon Holdings, Treatt
LONDON (SHARECAST) - With the flurry of Christmas trading updates almost over, next week is looking relatively quiet on the corporate front, with newsagent WH Smith one of the last of the household names from the retail sector to report, when it has its annual general meeting on Wednesday.
