Thursday preview: Sage and BT Group report results

Software company Sage is expected to report growth in its first half interims on Thursday, supported by an increase in sales and foreign exchange improvements.

Numis has forecast revenue will rise to £729m from £706 the previous year and earnings before interest, tax, depreciation and amortisation (EBITA) to grow to £195m from £192m.

The broker said it believes a pick-up in revenues during the period will put Sage on track for a “very gentle acceleration in growth up to 7% over the coming years, as the higher growth recurring revenue becomes and increasingly significant part of overall revenue”.

“We expect 6.2% constant currency underlying growth in H1, consistent with the at least 6% guidance , although we do expect reinvestment to impact EBITA,” said Numis analyst David Toms.

“Currency will, we expect, be a significant feature this year and drive a strong second half tailwind. We think the main investor focus will be on the extent of H2 margin pickup required (H1 26.8%, H2 28.1% in our model) and also the longer term margin prospects, where the CFO has consistently indicated he sees good upside.”

BT Group’s full year results will also be in focus, hot on the heels off its acquisition of EE.

UBS expects BT to outline how it will evolve as a converged business following the EE acquisition and explain the opportunities it sees after the reorganisation announced at the third quarter results.

The analyst also believes BT may upgrade its cost synergy guidance from £360m per year to £540m per year.

“BT may also outline plans for higher capex at EE given the award of the Emergency Services Network contract and plans to expand geographic coverage of 4G.”

For the fourth quarter, UBS predicts revenue of £5.60bn, with EE contributing £1.04bn. It has forecast broadly stable underlying revenues with good growth at Consumer offset by tougher comparables in Openreach and Wholesale businesses. EBITDA is estimated to come in at £2.01bn with normalised free cash flow of £1.27bn.

“We expect BT to report strong Q4 retail broadband net adds (+150k for Q4 vs +82/130k in Q2/Q3) following reduced promotional activity from Sky.”

Thursday 05 May

INTERIMS
GW Pharmaceuticals

INTERIM DIVIDEND PAYMENT DATE
Volution Group (WI)

INTERIM EX-DIVIDEND DATE
AB Dynamics, Focusrite, Inland Homes, James Halstead, JRP Group, Lok'n Store Group, SCS Group , Smart (J) & Co., Swallowfield

QUARTERLY EX-DIVIDEND DATE
BP, Custodian Reit , GLI Alternative Finance , SQN Asset Finance Income Fund Limited, Toro Limited

Q2
GW Pharmaceuticals

Q4
BT Group

FINALS
BT Group

IMSS
Provident Financial, RSA Insurance Group

AGMS
Costain Group, Empresaria Group, GKN, GlaxoSmithKline, Gulfsands Petroleum, Howden Joinery Group, IMI, Inmarsat, Jardine Matheson Holdings Ltd (Singapore Reg), Jardine Strategic Holdings Ltd. (Singapore), Johnson Service Group, Kingspan Group, Ladbrokes, Millennium & Copthorne Hotels, Morgan Sindall Group, Personal Group Holdings, Provident Financial, Real Estate Investors, Reckitt Benckiser Group, Rightmove, Robinson, Rolls-Royce Holdings, Sanne Group, Trinity Mirror

TRADING ANNOUNCEMENTS
Derwent London, IMI, Kennedy Wilson Europe Real Estate , Morrison (Wm) Supermarkets, Provident Financial, RSA Insurance Group, Smith & Nephew

UK ECONOMIC ANNOUNCEMENTS
BRC Shop Price Index (00:01)
Halifax House Price Index (08:30)

FINAL DIVIDEND PAYMENT DATE
Amiad Water Systems Ltd, British American Tobacco, Countrywide, Schroders, SEGRO, Ultra Electronics Holdings

FINAL EX-DIVIDEND DATE
Acacia Mining, Acencia Debt Strategies Ltd., Card Factory, Cello Group, Centaur Media, Croda International, Dunedin Income Growth Inv Trust, Empresaria Group, F&C Private Equity Trust, H&T Group, Henderson Group, Highcroft Investment, Holders Technology, Ibstock , Kingfisher, London Stock Exchange Group, Lookers, Morgan Advanced Materials , Mortgage Advice Bureau (Holdings) , Neptune-Calculus Income & Growth VCT, Ocean Wilsons Holdings Ltd., Playtech, Polymetal International, Rightmove, SDL, SimiGon Ltd. (DI), Stock Spirits Group , Total Produce

Q1
Lancashire Holdings Limited