Thursday preview: Old Mutual reports first half results

Old Mutual reports its first half results on Thursday with the focus on any updates on plans to carve up the business.

The group is planning to split the business into four parts: Old Mutual Wealth, South African lender Nedbank, the South African Old Mutual Emerging Markets business and its US institutional asset management arm Old Mutual Asset Management.

As part of its separation, the investment firm on Tuesday announced the sale of its Italian wealth arm to private equity-backed Ergo Italia for €278m.

The disposal of the Italian unit means Old Mutual Wealth has removed itself from all of its continental European operations, which comes ahead of a planned stock market flotation in London later in the year.

On Old Mutual’s first half results, UBS said: “We expect investors focus to be solely on any update provided on the managed separation currently being pursued by management and as such do not expect the financial results to be the key driver of stock performance on the day.”

“That said, we believe that with the prospects of a separate listing of the emerging markets business to come, investors focus should be on the operating metrics of that business which are likely to be somewhat depressed by the weaker currency and tougher consumer environment in South Africa than a year ago.”

UBS expects the group to report an 8% drop in APE sales to £277m, reflecting weaker currency.

On a constant currency basis, UBS sees a 12% increase in APE sales as a result of stronger growth in the Mass Foundation Cluster in South Africa, in the Rest of African and the Asian and Latin American businesses.

In the UK wealth management business, UBS estimates Old Mutual will report a 7% rise in operating earnings to £162m.

The group is forecast to report a drop in adjusted operating profit to 8.3p per share from 10.3p a year ago, with significantly lower South African earnings driven by the weaker Rand.

UBS expects total funds under management of £338bn, with net client cashflow of £6.2bn, up from £1.4bn last year. It predicts an interim dividend of 2.7p per share.

Thursday August 11

INTERIMS
Aldermore Group, Coca-Cola HBC AG (CDI), Hastings Group Holdings , Ophir Energy

INTERIM EX-DIVIDEND DATE
Aberdeen UK Tracker Trust, AstraZeneca, Direct Line Insurance Group, Fevertree Drinks, Fresnillo, GKN, Globaldata, IMI, Informa, Law Debenture Corp., Lloyds Banking Group, LSL Property Services, Man Group, Maven Income and Growth VCT 5, McColl's Retail Group , Merlin Entertainments , Millennium & Copthorne Hotels, Mobeus Income & Growth 4 Vct, Octopus Titan VCT , Rentokil Initial, Rio Tinto, RM, RSA Ins 7te%pf, Spirent Communications, St. Modwen Properties, Vesuvius, Virgin Money Holdings (UK)

QUARTERLY EX-DIVIDEND DATE
Barclays, GlaxoSmithKline, Picton Property Income Ltd, Royal Dutch Shell 'A', Royal Dutch Shell 'B'

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Continuing Claims (US) (13:30)
Initial Jobless Claims (US) (13:30)

Q2
Grupo Clarin SA GDR (Reg S), Pagegroup

DRILLING REPORT
Glencore

SPECIAL EX-DIVIDEND PAYMENT DATE
Direct Line Insurance Group, Manchester & London Investment Trust

EGMS
CIC Gold Group Limited (DI), Wishbone Gold

AGMS
Boxhill Technologies , CIC Gold Group Limited (DI), Federal Bank Ltd (The) GDR (REGS), Wishbone Gold

UK ECONOMIC ANNOUNCEMENTS
RICS Housing Market Survey (00:01)

FINAL DIVIDEND PAYMENT DATE
Dairy Crest Group

FINAL EX-DIVIDEND DATE
Ashtead Group, BT Group, Ensor Holdings, Greene King, Hayward Tyler Group, Iomart Group, Maven Income And Growth VCT 6 , New Century AIM VCT, Octopus Apollo VCT, PZ Cussons, RPC Group