Financial News

Monday June 29, 04:06 PM
Tuesday preview: Arriva, Carpetright, HMV

LONDON (ShareCast) - A trading statement from bus and train operator Arriva on Tuesday should prove timely as attention is focused on the sector after National Express (LSE: NEX.L -

href="http://uk.finance.yahoo.com/q/h?s=NEX.L">news) confirmed today it had received a preliminary approach from rival bus and train operator FirstGroup (LSE: FGP.L - news) .

The recession has been slowing passenger revenue growth at Arriva, especially in the company's CrossCountry rail franchise, which saw year-on-year passenger revenue growth of 4.5% in the 13 weeks to 4 April 2009, versus 7.7% growth at Arriva Trains Wales. The Bus division over the same period saw passenger revenue growth of 7.1% compared to a year earlier.

HMV, the entertainment products retailer, said at the end of April that full-year results would be at the upper end of market forecasts, since when the share price has, bizarrely, lost around one-fifth of its value.

The chain has benefited from the demise of rivals Woolworths (Munich: 886853 - news) and Zavvi, but concerns remain about the company's book selling subsidiary, Waterstone's. With Internet retailers posing a potentially fatal threat to the company's traditional business model, HMV has shifted emphasis with its new generation of stores, placing more emphasis on computer games and technology, while also cutting costs and beefing up its own Internet presence.

KBC Peel Hunt, which is bullish on the stock despite concerns about the threat online gaming and electronic software delivery may pose to a major part of the company's business, expects full-year pre-tax profit to be £62m, while earnings per share are tipped to be 11p, representing earnings growth of around 9%.

An unchanged final dividend of 5.6p would see the shares trading at a dividend yield of around 6.4%.

The UK housing slump has predictably put floor coverings retailer Carpetright (LSE: CPR.L - news) 's sales under the cosh, but the company's shares have soared almost 50% since the company's trading update at the end of April, reflecting hopes of a recovery in the housing market and the possibility of competitor Allied Carpets going into administration.

Sales in the UK in the 25 weeks to the beginning of April were down by more than 15% on a like-for-like basis, compared to a 13% like-for-like slowdown in the first half of the company's financial year.

Profit before tax is expected to slump to £18.21m from £59.5m the year before. Market consensus for sales is £481.3m, down from £521.5m. A final dividend of 7.13p is expected, making a full-year dividend of 11.13p, giving a dividend yield at the current share price of 1.9%.

Tuesday June 30

INTERIMS Pursuit Dynamics (LSE: PDX.L - news)

INTERIM DIVIDEND PAYMENT DATE A&J Mucklow, Future, Jersey Electricity 'A', Keydata AIM VCT (LSE: KEY.L - news) , Local Shopping REIT, Majedie Investments, Marston's, MWB Business Exchange (LSE: MBE.L - news) , Plexus (NASDAQ: PLXS - news) , Town Centre Securities (LSE: TCSC.L - news)

QUARTERLY PAYMENT DATE Premier Energy (Frankfurt: A0RA7N - news) & Water Trust, Scottish American Inv Company

INTERNATIONAL ECONOMIC ANNOUNCEMENTS Chicago PMI (US) (14:45) Consumer Confidence (US) (15:00) German Retail Sales (GER) Producer Prices (FRA) Unemployment (GER) M3 Money Supply (EC) (09:00) Consumer Price Index estimate (EC) (10:00) Jobless Rate (JPN) Household Spending (JPN) Housing Starts (JPN)

FINALS Assura Group (LSE: AGR.L - news) , Carpetright, Eredene Capital (LSE: ERE.L - news) , HMV Group (LSE: HMV.L - news) , Plastics Capital (LSE: PLA.L - news) , ReNeuron, Scott Wilson (LSE: SWG.L - news)

AGMS Alexandra, Apace Media (LSE: APA.L - news) , Cadogan Petroleum (LSE: CAD.L - news) , Crimson Tide (LSE: TIDE.L - news) , Eagle-i Holdings, IdaTech (LSE: IDA.L - news) , Impellam Group, Inion, Keydata AIM VCT 2 (LSE: KEYT.L - news) , Keydata Income VCT 1, Keydata Income VCT 2, Mediterranean Oil & Gas, Nipson Digital Printing Systems (LSE: NDP.L - news) , North Atlantic Smaller Companies Inv Trust, Sinosoft Technology (LSE: SFT.L - news) , Viridas

TRADING STATEMENT Arriva

UK ECONOMIC ANNOUNCEMENTS Current Account (09:30) GDP (quarterly national accounts) (09:30) GfK Consumer Confidence (00:01)

FINAL DIVIDEND PAYMENT DATE China Shoto (LSE: CHNS.L - news) , Core VCT I (LSE: CR.L - news) , Core VCT II (LSE: CR2.L - news) , Core VCT III (LSE: CR3.L - news) , Edge Performance VCT, HSBC Infrastructure Company Ltd., Securities Trust of Scotland, Ukrproduct Group, Vindon Healthcare (LSE: VDN.L - news) , Visonic (LSE: VSC.L - news)