The week ahead in business and finance

MONDAY NOVEMBER 23

Outsourcing group MITIE has enjoyed a solid start to the year, and it is poised to deliver good full-year organic revenue growth when it publishes its half-year results today. In September, the management service provider said trading was in line with expectations, with consensus estimates for the year pointing to sales of £2.4bn and pre-tax profit of £117.6m.

The facilities management division, which accounts for 84pc of anticipated revenue, is performing robustly, although trading it the homecare market is challenging. Nonetheless, the group’s performance is generally weighted to the second half of the year and while, investors may expect further momentum in the near-term, MITIE has already secured 94pc of its budgeted revenues for the year.

Earlier this year, the company described the new National Living Wage as a “welcome move” by the government and one which will help it retain talent. Christopher Bamberry, of Peel Hunt, said: “MITIE is confident that the contractual positions it has will ensure that the introduction of the National Living Wage will not have a material impact on future earnings.”

Interim Results: Trakm8 Holdings, MITIE, Kainos, Bonmarche Holdings, Sacoil Holdings

AGM: Just Retirement Group, Goldenport Holdings, Mirada

TUESDAY NOVEMBER 24

Mid-cap real estate group Shaftesbury is expected to beat consensus forecasts tomorrow when it posts its full-year results thanks to a raft of strong half-year earnings across the sector. With a portfolio of prime central London locations in Carnaby Street and Covent Garden, the group is exposed to both domestic and overseas consumers, and as it’s currently trading at a 4pc premium to the sectors, analysts believe it could smash its pre-tax forecast of £38.9m.

This summer the FTSE 250 firm boasted of buoyant trading in shops, bars and restaurants. Sue Munden, of Panmure Gordon, said new lettings in the first half of the year were struck at rents 10pc higher than estimated, signalling strong rental growth.

While Shaftesbury has two major developments underway in Chinatown and Broadwick Street in London, investors will remain focused on Crossrail, which has been described by analysts as a “game changer” for the company. Its portfolio is set to benefit from Crossrail when it arrives in 2018 as it is all in walking distance to the station, which is expected to see up to 300,000 passengers per day.

Interim Results: AO World, Creston, Signet Jewelers, CML Microsystems, De La Rue, Babcock International Group, Severfield, Pets At Home

Final Results: Mitchells & Butlers, Renew Holdings, Shaftesbury, Paragon Group of Companies, Greencore Group, Compass Group

AGMs: Vinaland, Strat Aero, Avanti Communications, Dunelm Group

Trading updates: Kingfisher, Intertek Group, Cineworld

Economics: IFO Business Climate (GER), IFO Current Assessment (GER), IFO Expectations (GER), Durable Goods Orders (US), GDP Preliminary (US), Consumer Confidence (US), CBI Distributive Trade Surveys (UK)

WEDNESDAY NOVEMBER 25

The Russian plane crash at the end of October in Egypt, which resulted in the suspension of flights to the Red Sea resort of Sharm el-Sheikh, is expected to hurt Thomas Cook’s full-year results on Wednesday. While the tour operator kept its full-year growth expectations unchanged, analysts said the move to cancel holidays to the popular holiday resort following the airplane crash could result in a £15m underlying hit to profits.

Financial uncertainty in Greece and the attack in Tunisia earlier this year have already weighed on earnings. David Madden, an IG analyst, said: “The travel industry had a number of setbacks this year, and to make matters worse for Thomas Cook, adverse currency movements will also dent the annual figures.”

Last week, shares in the company slumped in the wake of the attacks in Paris. However, while the stock has impacted by recent terrorist activity, analysts believe it is now priced into its valuation. Pre-tax profits of £163m are anticipated, with earnings per share expected to come in at 9.3p.

Interim Results: United Utilities Group, RPC Group, Betfair Group, Hogg Robinson Group, TR Property Investment Trust, VP

Final Results: Britvic, Daily Mail & General Trust, Thomas Cook Group

AGMs: F&C UK Real Estate Investments, Oilex, Mysale Group, Finsbury Food Group

Economics: MBA Mortgage Applications (US), Personal Consumption Expenditures (US), Personal Income (US), Personal Spending (US), House Price Index (US), New Homes Sales (US), Crude Oil Inventories (US), BBA Mortgage Lending Figures (UK), Chancellor Statement (UK)

THURSDAY NOVEMBER 26

An acceleration in earnings growth and a slowdown in disposals will see pub operator Marston’s deliver a set of full-year results in line with expectations. Pre-tax profits for the second half of the year are set to rise by 14pc buoyed by the success of its acquisition of Thwaites’ brewing business, which has helped brewing volumes climb 15pc.

Last month, Ralph Findlay, chief executive, said the acquisition means the group is now well placed to exploit growth in premium and craft beers. New pub-restaurants, premium pubs and lodges are all anticipated to have enjoyed a robust performance this year.

Although a number of other pub operators have been writing down asset values, Douglas Jack, of Numis, noted: “Marston’s last estate revaluation was announced at the interim results and resulted in a positive net revaluation surplus of £54m.”

Interim Results: Torotrak, Charles Stanley Group, Severn Trent, First Property Group, PayPoint, LondonMetric Property, Arrow Global Group, Helical Bar, Hornby

Final Results: SSP Group, Marston's

AGMs: Jsc Kazmunaigas Exploration Production, Invista European Real Estate Trust, Thor Mining

Trading Statement: Anglo Pacific Group

Economics: M3 Money Supply (EU), Continuing Claims (US), Initial Jobless Claims (US)

FRIDAY NOVEMBER 27

Birmingham-based Patisserie Holdings will publish its second set of full-year results on Friday since listing on Aim last year. The upmarket café and cake chain should see sales improve across its fleet of 156 stores, while it continues to grow its estate.

With a target of opening 20 new stores this year, the group said trading should be in line with sales expectations of £96.6m and earnings before interest tax and depreciation of £17.9m. Chief executive Luke Johnson already boasted about the success of new trailed products including an afternoon tea, and investors will be hoping for an update on how its seasonal menus have been received.

The tie-up with Debenhams was also highlighted by Ali Naqvi, of Peel Hunt, as a move which shows “management’s flexibility in picking sites”, even though they will generate lower revenues.

Interim Results: Pennon Group, Real Estate Credit Investments

Final Results: Patisserie Holdings, Future

AGMs: Wildhorse Energy, Forte Energy NL, Draganfly Investments, Pan African Resources, Range Resources, Harvest Minerals Limited, Filtronic

Economics: Business Climate Indicator (EU), Economic Sentiment Indicator (EU), GFK Consumer Confidence (UK), Consumer Confidence (UK), GDP (output, income & expenditure) (UK), Index of Services (UK)

ECONOMIC LOOK AHEAD

The scene has been set for George Osborne’s Autumn Statment and Spending review this week. The Chancellor has agreed deep spending cuts with all Whitehall departments, but as he grapples with a deficit that is falling much more slowly than expected, analysts are speculating what else is in the firing line as he scrambles to fill a £4.4bn hole left by a rejection of tax credit reforms. What’s clear is that Mr Osborne will deploy Plan A this week to balance the books by the end of the decade, with “A” standing very much for austerity.

Friday’s growth figures are expected to confirm the UK economy expanded by 0.5pc in the third quarter, driven by consumer spending as net trade exerted a significant drag on output. Meanwhile, Mark Carney, the Governor of the Bank of England, faces a grilling by MPs this week on the Bank’s latest Inflation Report. The report signalled this month that interest rates were likely to remain lower for longer as the impact of falling commodity prices continues to push down on inflation.

However, Mr Carney is expected to stress that the Bank’s job is to bring inflation back to target in a “sustainable” way, without an overshoot of the Bank’s 2pc target. This means rates could rise before current market expectations for the beginning of 2017.