Wednesday preview: M&S reports first half interims

Marks & Spencer’s first half profits are expected to rise, as weak clothing sales are offset by higher margins at the general merchandise business.

UBS predicts pre-tax profit of £270m in the first six months, up from £268m the same period last year when M&S reports its interims on Wednesday.

“Against this, there is likely to be further operating deleverage from lower non-food LFL, and a further sharp decline in the overseas contribution (lower franchise sales, adverse currency movements, China),” said analyst Andrew Hughes.

“Given strong cash inflows as a result of capex depreciation and tight control of working capital, we estimate an interim dividend of 6.8p, +6%.”

Deutsche Bank also said it predicts an increase in profits, with soft clothing trends countered by margin gains but overall results dragged by a weak international performance.

The bank has forecast sales at the general merchandise division will fall 1% as a strong online performance of +35% is hindered by continued poor performance at stores.

“Over the summer Steve Rowe took over GM from successfully running food and subsequently reshuffled key design and merchandise positions in womenswear. Hence we look closely for signs of planned acceleration and/ or fine-tuning of the GM strategy, said analyst at Charlie Muir-Sands.

In economic data, China services data from Caixin will be in focus after manufacturing reports on Monday showed further contraction in activity.

The UK and US will also see services data from Markit while ISM will publishes its US non-manufacturing composite.

ADP’s employment report, which is expected to show US employers added 180,000 jobs in October, will be looked at for clues ahead of Friday’s non-farm payrolls figures.

Wednesday 4 November

INTERIMS
Canaccord Genuity Group Inc., Heath (Samuel) & Sons, Marks & Spencer Group, Vedanta Resources, Wizz Air Holdings

INTERIM DIVIDEND PAYMENT DATE
Andrews Sykes Group, Cambian Group, Carillion, StatPro Group

QUARTERLY PAYMENT DATE
Assura

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (US) (13:30)
Continuing Claims (US) (13:30)
Crude Oil Inventories (US) (15:30)
Initial Jobless Claims (US) (13:30)
ISM Non-Manufacturing (US) (15:00)
ISM Services (US) (15:00)
MBA Mortgage Applications (US) (12:00)
PMI Composite (EU) (09:00)
PMI Composite (GER) (08:55)
PMI Services (EU) (09:00)
PMI Services (GER) (08:55)
Producer Price Index (EU) (10:00)

Q2
Canaccord Genuity Group Inc.

Q3
Apax Global Alpha Limited , Smurfit Kappa Group

FINALS
Tracsis

IMSS
Intu Properties, Old Mutual

AGMS
Alternative Asset Opportunities PCC Ltd Red Ptg Prf Shs, Ricardo, Sky

TRADING ANNOUNCEMENTS
PPHE Hotel Group Ltd, Xaar

UK ECONOMIC ANNOUNCEMENTS
BRC Shop Price Index (00:01)
Official Reserves (09:30)
PMI Composite (09:30)
PMI Services (09:30)