Thursday preview: IMPs, Moss Bros

Imperial Tobacco may well have something to say in its trading statement about the swingeing increase in duty on cigarettes announced in the recent Budget which is threatening to put a packet of 20 fags out of the price range of even the most determined teen-aged smoking addict.

A spokesman for the tobacco industry noted in the aftermath of the Chancellor of the Exchequer's decision to raise duty on tobacco products by 8% that it was the fourth large tax increase on tobacco since March 2010.

"Following this increase crime bosses will be tapping on their calculators to work out their new profit margins and how to get more customers to buy from their already burgeoning supply chain," the spokesman said.

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Since March 2010, IMPs' pre-tax profits have more than doubled, by the way.

Nomura is sceptical about IMPs' sales-led growth strategy. "We fail to see Imperial's new sales focus having the impact required in terms of re-invigorating the top line, and believe this will likely become evident with softer-than-expected 2012 volumes," the broker said.

After the weak volumes seen in the first quarter, Nomura thinks that Imperial will need to grow second-half volumes by around 2.4% in order to reach consensus volume targets - "we still feel this +2.4% is a very big ask and disappointment is likely."

Suit hire specialist Moss Bros is set to return to the black when it announces full year results on Thursday.

Market consensus is for profit before tax of £0.52m on revenue of £101.05m. Earnings per share are expected to weigh in at about 0.47p but a dividend payment is not anticipated.

"Following the sale of the Hugo Boss franchise, we expect Moss to report year-end net cash balances of £22m, leaving the business well placed to embark on the next phase of recovery," said broker Peel Hunt.

"The last financial year represents a watershed for Moss, with the significant operational, management and financial changes bringing the business back into profitability, securing the balance sheet and creating the platform for future recovery, which is where investors will focus at the forthcoming results," Peel Hunt asserts.

The broker will be keen for an update on the scale and substance of the trial store format.

INTERIMS

James Halstead, PureCircle Ltd. (DI), Seeing Machines Ltd.

INTERIM DIVIDEND PAYMENT DATE

Hansard Global

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Balance of Payments (GER) (07:00)

Bloomberg Consumer Confidence (US) (14:45)

Continuing Claims (US) (13:30)

GDP (Final) (US) (13:30)

Initial Jobless Claims (US) (13:30)

PMI Retail (EU) (09:00)

PMI Retail (GER) (08:55)

Unemployment Rate (GER) (08:55)

FINALS

Amiad Water Systems Ltd, Biome Technologies, Bwin.party Digital Entertainment, Hilton Food Group, IFG Group, Inditherm, Lombard Medical Technologies, Moss Bros Group, Optimal Pay, Oxford Catalysts Group, RCG Holdings Ltd, S & U, Stada Arzneimittel AG, Travelzest

ANNUAL REPORT

Aviva, CRH, IMI

AGMS

Arden Partners, Formation Group, Helius Energy, Independent Inv Trust, Low & Bonar, Pinnacle Telecom Group

TRADING ANNOUNCEMENTS

Future, Imperial Tobacco Group, Robert Wiseman Dairies, TUI Travel

UK ECONOMIC ANNOUNCEMENTS

Index of Services (09:30)

PMI Retail (EU) (09:00)

FINAL DIVIDEND PAYMENT DATE

Domino's Pizza UK & IRL, Henderson Opportunities Trust, SWP Group

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