Thursday preview: Brexit, Severn Trent, Tullow Oil

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Sharecast News | 21 Nov, 2018

17:24 14/11/24

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The market spotlight on Thursday will be on the headlines around the results of the Prime Minister's visit to Brussels and her talks with European Commission chief, Jean-Claude Juncker, regarding the UK's long-term partnership agreement with the bloc.

Nevertheless, barring surprises, trading volumes in financial markets around the world should be light given the absence of US traders on account of the Thanksgiving Day holiday.

No major economic reports are scheduled for release in the UK or US, while across the Channel the main risk event will be the release of the minutes of the European Central Bank's last policy meeting, at 1230 GMT.

Further afield, policymakers at South Africa's central bank are expected to meet to decide on interest rates.

Utility Severn Trent and Tullow Oil are among the companies which are set to release results in the UK on Wednesday.

For Severn, analysts at Deutsche Bank were forecasting a 2% rise in interim profits before interest and tax to £295m and of 7% in its profits before tax to £192m as net interest costs drop 5% to -£105m.

The water company's dividend per share was also seen increasing, by 8% to £35.2m, in-line with the company's 4% plus RPI inflation target.

Net debt meanwhile was seen rising from last year's £5.1bn to £5.5bn.

In the case of Tullow, which is set to hold its first Capital Markets Day since 2014, Numis's Thomas Martin expected the focus to be on the oil explorer's reinvestment opportunities and on its East African development projects.

"[The CMD] coincides with what is effectively a return to business as normal. The business is now being run for the benefit of shareholders, following a period during which the strategy was dictated by the high levels of debt," Martin said.

Martin's forecasts were calling for an increase in the outfit's production from roughly 92,000 barrels of oil equivalent per day in 2018 to about 100,000 boepd in 2019, with further growth seen resuming in 2022 as the East African projects come onstream.

Thursday November 22

INTERIMS

Alpha Real Trust Ltd., Assura , Caledonia Investments, Charles Stanley Group, CMC Markets, First Property Group, Hornby, IMImobile , John Laing Environmental Assets Group Limited , Keller Group, Majestic Wine, Mitie Group, Mothercare, Mountview Estates, Redcentric, Severn Trent, TR Property Inv Trust

INTERIM DIVIDEND PAYMENT DATE

Centrica, Plus500 Ltd (DI)

INTERIM EX-DIVIDEND DATE

3i Infrastructure, B&M European Value Retail S.A. (DI), Castings, DCC, Downing Three VCT H Shs, Great Portland Estates, Mckay Securities, National Grid, Octopus Apollo VCT, Tate & Lyle, Tatton Asset Management , Ten Entertainment Group , Vodafone Group, Wynnstay Properties, Young & Co's Brewery 'A' Shares, Yu Group

QUARTERLY PAYMENT DATE

M Winkworth

QUARTERLY EX-DIVIDEND DATE

BlackRock World Mining Trust, Carnival, HICL Infrastructure Company Ltd, Premier Global Infrastructure Trust

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Continuing Claims (US) (13:30)

Initial Jobless Claims (US) (13:30)

Q3

Bank of Georgia Group

FINALS

Euromoney Institutional Investor, Mitchells & Butlers

SPECIAL EX-DIVIDEND DATE

River and Mercantile Group

AGMS

Berkeley Energia Limited (DI), daVictus, JPMorgan Emerging Markets Inv Trust, Thorpe (F.W.), URA Holdings

TRADING ANNOUNCEMENTS

Centrica, Rotork

FINAL DIVIDEND PAYMENT DATE

Mulberry Group

FINAL EX-DIVIDEND DATE

AB Dynamics, Balfour Beatty Cum Cnv Red Prf , CVS Group, Edinburgh Dragon Trust, Finsbury Food Group, Genesis Emerging Markets Fund Ltd Ptg NPV, Hotel Chocolat Group , JPMorgan Japanese Inv Trust, Kin and Carta , London Finance & Investment Group, Northern Venture Trust, Oleeo, River and Mercantile Group , Sanditon Investment Trust, Smart (J) & Co., Volution Group (WI)

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