Thursday preview: Results due from Auto Trader, CMC Markets and Mitie

Thursday sees a small handful of results expected, including for Auto Trader, CMC Markets and Mitie, while Halifax will update on its house price data.

The Halifax's price index is expected to rise by 1.9% month-on-month in May, reversing some of April's 3.1% decline. However, this survey's data is excessively volatile, economists warn, despite being seasonally adjusted.

Bank of England policymaker Dave Ramsden, who voted against the majority hiking rates at the November meeting, will be speaking in London at 1600 BST.

Turning to company news, back in March Auto Trader's cautious comments on the used car market in the UK, representing around 85% of the product on its website, sent the shares skidding lower.

Management has suggested used car transactions would fall by 1-3% in the year to March and then come in flat in the years to March 2019 and 2020. Price and new product offerings such as dealer finance and a new search service which could drive advertising, could be worth looking out for, said analysts at AJ Bell.

In terms of the headline numbers, the average City analyst forecasts is pointing to a 6% increase in sales to £331m, PBT up 9% to £211m and a 10% increase in the dividend to 5.71p.

Nicholas Hyett at broker Hargreaves Lansdown said the single-digit growth is a significant slowdown on previous years. "But with Auto Trader now firmly established as the dominant player in a mature market, that’s only to be expected - especially as conditions in the UK car market look far from rosy.

"The good news is that with net debt considerably lower than in previous years and cash generation still strong, there’s plenty of scope for dividend growth in the near term."

A longer-term concern is that some pretty bruising competitors look to be eyeing up a slice of Auto Trader’s pie. Amazon have been rumoured to be looking at entering the car market and UK rival Motors.co.uk has recently announced a partnership with Facebook to list its wares on marketplace. Should either tech giant start to accelerate investment in the sector that could eat into Auto Trader’s attractive market position."

In its own pre close update in March, CMC Markets said the strong performance had been maintained towards the end of its trading year, with net operating income a pip or two above the first half, with the proportion of high value clients increased.

The consensus forecast is for PBT of £56.3m, with analysts and investors expecting the spread-betting and CFD provider to talk about the regulatory framework and how it may impact future revenue. The European regulator in March banned the use of binary options and imposed leverage limits on CFDs for retail customers.

Broker Numis said: "We expect this change to limit the activities of smaller and less scrupulous players in the online financial products, and could see more customers coming to more reputable providers such as CMC. The company continues to target high value professional clients in favour of retail clients."

In early May the company announced a new 'CMC Pro' offering for professional clients to continue to use leverage as well as some other benefits, with eligible clients being who “demonstrate they are capable of making their own investment decisions and understand the risks involved", in addition to having carried out transactions of a significant size on a relevant market and/or having a financial instrument portfolio that exceeds €500,000 and/or working or having worked in the financial sector for at least one year in a relevant professional position.

Facilities management outsourcer Mitie has had a turbulent year with the optimism of the strategy review last June giving way to the reality of challenging trading conditions, and the aborted attempt to dispose of the Property Management business after failing to find a buyer to match management’s valuation of the business.

Its own update in March, the company said it expected full operating profits to be slightly below the previous year after modest growth in sales, with revenue growth in the range of 2-2.5% to around £2.2bn.

Chief executive Phil Bentley said the company had seen “limited impact” on the company in the wake of the collapse of sector peer Carillion, although he added this had raised “some fundamental questions about the outsourcing industry”.

Numis anticipates group EBITA falling 10% to £73.6m, though legal provisions may be classed by management as exceptional.

"We expect management to provide an update on the progress of its Project Helix transformation programme, where costs have risen since the strategy review last June. Our key concern with Mitie remains the level of average net debt in the business, particularly given recent negative earnings momentum, and we believe management will outline progress (if any) in bringing average net debt down."

Thursday June 07

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Consumer Credit (US) (20:00)
Continuing Claims (US) (13:30)
Industrial Production (GER) (07:00)
Initial Jobless Claims (US) (13:30)

UK ECONOMIC ANNOUNCEMENTS

Halifax House Price Index (08:30)

FINALS

Auto Trader Group, CMC Markets, Mitie Group, Ramsdens Holdings

INTERIMS

Impax Asset Management Group, RWS Holdings

TRADING ANNOUNCEMENTS

Joules Group

SPECIAL DIVIDEND PAYMENT DATE

Fidessa Group

SPECIAL EX-DIVIDEND DATE

Helios Underwriting, Marshalls, Perpetual Income & Growth Inv Trust

GMS

Thor Mining

AGMS

BCRE - Brack Capital Real Estate Investments N.V. (DI), Camellia, Cluff Natural Resources, Cluff Natural Resources, Dignity, Downing Three VCT F Shs, Downing Two VCT F Shs , Invesco Perpetual UK Smaller Companies Inv Trust, Jackpotjoy, Mears Group, Nasstar, Pagegroup, RHI Magnesita N.V. (DI), Safestay, Soco International, Sopheon , Summit Therapeutics , TP Group, Volga Gas

FINAL DIVIDEND PAYMENT DATE

Eddie Stobart Logistics , Fidessa Group, Filta Group Holdings, Legal & General Group, Macfarlane Group, William Hill

FINAL EX-DIVIDEND DATE

Anglo-Eastern Plantations, Animalcare Group, Arena Events Group , Billington Holdings, Christie Group, Cineworld Group, Flowtech Fluidpower, Helios Underwriting, Inspired Energy, Johnson Matthey, Judges Scientific, Learning Technologies Group, London Security, LXI Reit , M&C Saatchi, Marshalls, Nasstar, Phoenix Spree Deutschland Limited Shs NPV, Restaurant Group, Restore, Rotala, RTC Group, Sainsbury (J), SIG, Sopheon, Spectra Systems Corporation, Synthomer, Telford Homes, Vodafone Group, Warehouse Reit, Young & Co's Brewery 'A' Shares

INTERIM EX-DIVIDEND DATE

Aberdeen Frontier Markets Investment Company, Aeci 5 1/2% Prf, Artemis VCT, Associated British Foods, Aviva 8 3/4% Cumulative Irrd Preference 1, Connect Group, Daily Mail and General Trust A (Non.V), Debenhams, Evraz, General Accident 'A', Inland Homes, ITE Group, Majedie Investments, Northern Venture Trust, Tharisa (DI), Topps Tiles, Urban&Civic , Victrex plc, Watkin Jones

QUARTERLY EX-DIVIDEND DATE

Raven Russia Ltd 6.5% Red Cnv Pref Shs NPV, RM Secured Direct Lending, UIL Limited (DI), Volta Finance Limited