Tuesday preview: British Land and Babcock International report

British Land and Babcock International Group will take centre stage Tuesday when the FTSE 100 companies release their annual results.

British Land and Babcock International Group will take centre stage Tuesday when the FTSE 100 companies release their annual results.

Analysts at Jefferies International expect British Land to report flat net asset value, pre-tax profit and earnings per share.

"British Land has a low marginal cost of debt at 1.5%, but this means that the £950m of net proceeds from the equity raise and disposal of Ropemaker will not have a meaningful positive impact on earnings, as the revolving credit facilities repaid attract the same low coupon and thus the blended cost of debt rises ahead of reinvestment," the broker said of the property investment company earlier this month.

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"And assuming 100% deployment of the proceeds in fiscal year 2014, earnings will not see any meaningful accretion until fiscal year 2015."

Babcock International Group, on the other hand, is anticipated to report strong progress compared to the previous year.

Ahead of its annual results, the engineering support services company last month said it was trading well on a healthy pipeline of contracts in civil and military markets.

WH Ireland said Babcock has created an unblemished track record in mission critical activities for the military, the government and emergency services, among others.

"Overall, Babcock's pipeline suggests numerous opportunities for further outsourcing penetration in specific areas" the analyst said last week.

"The business remains cash-generative and still offers upside, we believe, despite a good run for the shares in recent months. We are 'buyers' ahead of forthcoming results, with a 1,250p price target."

Tuesday May 14th


Enterprise Inns


Consumer Price Index (GER) (07:00)

Import and Export Price Indexes (US) (13:30)

Industrial Production (EU) (10:00)

ZEW Survey (EU) (10:00)

ZEW Survey (GER) (10:00)


Babcock International Group, Braemar Shipping Services, British Land Co, DCC, e-Therapeutics, Lombard Risk Management, Nature Group


Huntsworth, Toumaz Limited


APR Energy, Paddy Power, Rathbone Brothers


OSJC Center for Cargo Container Traffic Transcontainer GDR (Reg S)


APR Energy, BlackRock Latin American Inv Trust, Capita, Castle Alternatives Invest AG (DI), Cello Group, Fidelity Japanese Values, Grafton Group Units, Henderson High Income Trust, IP Group, NB Private Equity Partners Ltd., Portmeirion Group, Rathbone Brothers, Royal Bank of Scotland Group, Sportech, Standard Life, Standard Life Investments Property Income Trust Ltd., Tower Resources


Cenkos Securities, Delcam, Hammerson, John Laing Infrastructure Fund Ltd, PPHE Hotel Group Ltd, Standard Chartered


Telecom Egypt SAE GDS (Regs)



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