Wednesday preview: Compass, Cineworld

Interim results from contract caterer Compass should show the benefit of new contract wins and high retention rates.

The figures could show revenue growth of 8.5% and organic growth of 5%, according to Charles Stanley analyst Tony Shepard.

The broker is forecasting pre-tax profit of £560m, up from £531m last year. The interim dividend is forecast to increase to 7p from 6.5p.

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"The operating profit margin is expected to be at the same level as the first half of last year. Nevertheless, Compass still sees plenty of opportunity to improve margins over the medium term and there should be an uptick in the second half of 2012," Shepard observes.

The first half margin has been affected by the mobilisation of a very large contract, continued investment in the fast growing areas as well as the negative impact from the challenging trading conditions in Europe, Shepard notes.

Panmure Gordon is forecasting Compass's profit before tax will be £565m, giving earnings per share of 22.5p, and it, too, is predicting an interim dividend of 7p.

"At the pre-close update the group remained encouraged by the pipeline of new

business. We expect the outlook statement to reassure and believe Compass remains a very attractive stock given its US exposure and high returning business model with a very strong balance sheet," Panmure Gordon said.

Cinemas operator Cineworld gives a trading update on Wednesday and broker Canaccord thinks the company will be rubbing its hands in gleeful anticipation of the box office business it is likely to do with the new film based on the Marvel comics superhero team, The Avengers. The film broke box office records on its opening week-end.

"The UK box office not only benefited from the Avengers but the release of American Pie: Reunion helped boost weekend takings by [roughly more than] 70% [over] the same period last year (source: boxofficemojo.com). Not only is this momentum positive for admissions but retail sales and premium priced 3D tickets should provide an additional boost for box office sales," Canaccordd reckons.

INTERIMS

Compass Group

INTERIM EX-DIVIDEND DATE

Sage Group

QUARTERLY EX-DIVIDEND DATE

Honeywell International Inc., M Winkworth, MedicX Fund Ltd.

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Balance of Trade (EU) (11:00)

Building Permits (US) (13:30)

Capacity Utilisation (US) (16:15)

Consumer Price Index (EU) (10:00)

Crude Oil Inventories (US) (15:30)

FOMC Interest Rate Minutes (US) (19:00)

Harmonised Index of Consumer Prices (EU) (10:00)

Housing Starts (US) (13:30)

Industrial Production (US) (16:15)

MBA Mortgage Applications (US) (12:00)

New Car Registrations (EU) (10:00)

Wholesale Price Index (GER) (07:00)

FINALS

C&C Group, Datatec Ltd. (DI), Lombard Risk Management, Speedy Hire

IMSS

Bovis Homes Group, Greggs, Hardy Oil & Gas, Hilton Food Group, Interserve, Tullow Oil

EGMS

Psource Structured Debt Ltd.

AGMS

Aberdeen Asian Income Fund Ltd., Aegon NV, Aminex, BG Group, Bovis Homes Group, Cape, Churchill China, CPP Group, Elringklinger AG, Fidelity European Values, Greggs, Hardy Oil & Gas, Hilton Food Group, Howden Joinery Group, Interserve, Jupiter Fund Management , Legal & General Group, Marshalls, Playtech Ltd., Princess Private Equity Holding Ltd., ProPhotonix (Reg S), Publishing Technology, Tribal Group, Tullow Oil, Xchanging

UK ECONOMIC ANNOUNCEMENTS

Claimant Count Rate (09:30)

GDP (output, income & expenditure) (09:30)

Index of Services (09:30)

Unemployment Rate (09:30)

FINAL DIVIDEND PAYMENT DATE

Dairy Farm International Holdings Ltd. (Singapore), Hongkong Land Holding Ltd. (Bermuda), Hongkong Land Holding Ltd. (Jersey), Hongkong Land Holding Ltd. (Singapore), Jardine Matheson Holdingd Ltd. (Bermuda), Jardine Matheson Holdingd Ltd. (Jersey), Jardine Matheson Holdings Ltd (Singapore), Jardine Strategic Holdingd Ltd. (Bermuda), Jardine Strategic Holdingd Ltd. (Singapore), Logica, Mandarin Oriental International (Singapore), St James's Place, Wood Group (John)

FINAL EX-DIVIDEND DATE

Advanced Medical Solutions Group, Capital & Counties Properties , Carillion, Computacenter, Derwent London, F&C Private Equity Trust, Glencore International, Inchcape, Inmarsat, Management Consulting Group, Mecom Group, Morrison (Wm) Supermarkets, Northbridge Industrial Services, Polymetal International, Provident Financial, Robinson, Sainsbury (J), SDL, Tandem Group, TP70 VCT, Whitbread

Q1

New World Resources A Shares

JH