LONDON (ShareCast) - Oil firm Cairn Energy, which appears to have blown hundreds of millions of pounds in a fruitless search for oil and gas off the coast of Greenland, will release its full year results on Tuesday.
The Scottish oil company, already regarded as a villain by many environmentalists because of its drilling in Greenland's waters, caused amazement and consternation on the House of Commons environmental audit committee earlier this month when it admitted that it had not assessed the potential financial impact of a BP/Gulf of Mexico-style oil disaster in the Arctic.
Richard Heaton, a former BP geologist who is now exploration director of Cairn, said the company was mopre focused on "putting in place the most robust preventative measures."
Social housing and care provider Mears is expected by broker Jefferies to report in-line full year results on Tuesday, which would suggest profit before tax of £31.2m on turnover of £598m.
"The key information though, will be around conversion of the £3bn housing bid pipeline where a continuation of current win rates would apply material pressure to FY13 [fiscal 2013] organic growth rates," reckons Jefferies.
"With £1.6bn of the £3.0bn pipeline due to convert in FY12, and much of it pre-April given local authority year ends, win rates are important. Win rates are currently 44%, from a historical average of 33%, continuing this trend would see upside pressure of up to 15% on FY13 organic growth," the broker added.
Revenue growth in the Domiciliary Care division may disappoint at around 3%, the broker suggested, as a result of the group's decision to target double-digit margins.
The Social Housing unit could see top line growth of 13%, in Jefferies' view, most of which will be organic growth. However, the broker does foresee a slight erosion of the unit's margins, to 5.8%, from 6.0% in fiscal 2010.
"Exceptional items are worth flagging. There will be £1.1m of interest costs related to the extinguishment of previous facilities and £2m of costs relating to the closure of the Green Energy business. While acceptable to strip these costs out, with the inclusion of a pension credit above the line last year some may feel transparency is weakening," Jefferies notes.
At 9:30, UK inflation data will be released. Barclays Capital (BarCap) expects Consumer Price Index annual inflation to fall to 3.2% from 3.6%, "largely owing to declines in annual inflation for energy (reflecting cuts to household utility bills taking effect in February) and non-energy industrial goods (owing to residual VAT effects from last year dropping out of the annual rate)."
For much the same reason, the market is expecting Retail Price Inflation in February to ease to 3.5% from 3.9% in January.
Also out on Tuesday is the CBI industrial trends survey. Market consensus is for the March reading to retreat to -6% from February's -3%. BarCap is tipping an even bigger reverse, to -9%, and said this fall in the balance comes after the sharp increase reported in February and is consistent with the investment bank's view that the industrial sector will start to stabilise this year after the strong fall in output in the fourth quarter.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Producer Price Index (GER) (07:00)
Building Permits (US) (12:30)
Housing Starts (US) (12:30)
GMS
SVG Capital
FINALS
Bank Pekao SA GDS (Reg S), Cairn Energy, Charlemagne Capital Ltd., Gem Diamonds Ltd. (DI), Genel Energy, Hutchison China Meditech Ltd., Mears Group, Real Good Food Company, Restore, Severfield-Rowen, Source BioScience, T Clarke, UK Commercial Property Trust, UTV Media
ANNUAL REPORT
Bank Pekao SA GDS (Reg S), London Capital Group Holdings
AGMS
Octopus Titan VCT 3, Wynnstay Group
UK ECONOMIC ANNOUNCEMENTS
CBI Industrial Trends Surveys (11:00)
Consumer Price Index (09:30)
Retail Price Index (09:30)
FINAL DIVIDEND PAYMENT DATE
Downing Income Vct 4
jh
Email this article to a friend
or share it with one of these popular networks:
395.00p
Trade now with Barclays Stockbrokers
Update -
