The Week Ahead: Next, Hill & Smith

Monday 1 August

Trading Statements

Intertek, Vedanta Resources, Fidessa, OPG Power Ventures

AGM/EGM

Arian Silver Corporation, Aberdeen New Dawn Investment Trust

Tuesday 2 August

Trading Statements

InterContinental Hotels, Spirent Communications, Travis Perkins, Fresnillo, Tullett Prebon, SDL, 4imprint Group, Shire, Hutchison China Meditech, Greggs, Shire, T Clarke, Direct Line Insurance, Meggitt, Clipper Logistics, SABMiller

AGM/EGM

Kodal Minerals, ULS Technology

Wednesday 3 August

Wednesday's second-quarter figures from troubled high street retailer Next could well support chief executive Lord Wolfson's grim prediction that this year would be "the toughest we have faced since 2008".

The long decline in high street sales, coupled with a drop in credit customers at the more profitable Next Directory business, cramped revenue and earnings for months. The potential damage of a post-referendum recession also looms large.

After a lurching recovery since the EU vote, the shares are at £50 - about 10% below where they were on polling day.

Haitong Securities' Tony Shiret has duly taken the Brexit red pen to forecasts, nipping 2%, 7% and 9% off pre-tax profit (PBT) for 2016/17, 2017/18 and 2018/19 respectively, adjusting for the broker's "standard view" of the vote's impact.

Sales expectations have been bumped down too: "We forecast second-quarter sales growth of -4% at Next Retail and +2% at Directory giving Next Brand sales down around 1.5% (1Q -0.9%).

"We expect the top end of the full year guidance range for 2016/17E - sales +3.5%, PBT £852 million +4% - to be reduced."

With promised share buybacks on target, potential new profit growth from its International Directory and uncertainty over the Brexit impact, Haitong holds onto its 'buy' recommendation, giving fair value of 5,900p, representing impressive 17% upside.

Trading Statements

Non-standard Finance, Livanova, Standard Chartered, StatPro Group, SOCO International, Rio Tinto

AGM/EGM

Thursday 4 August

Maker of motorway crash barriers Hill & Smith releases first-half results on Thursday and Peel Hunt analyst Henry Carver is optimistic enough to grant the firm the most sought-after title: "Brexit safe haven".

It's because the broker reckons Britain's exit from the EU will have no impact on infrastructure spending in the US (especially on roads) where Hill has exposure, and "there could still be upside to growth in the US driven by the underlying market strength and scope for acquisitions".

Carver expects first-half underlying profit before tax of £29.1 million, feeding into £63.3 million for full-year 2016. That's 19% up on last year and about 0.6% above the consensus estimate.

In sales, he forecasts £503 million, up 8% from £468 million in 2015.

Trading Statements

RSA Insurance, RPS, Johnston Press, Mondi, London Stock Exchange, Ladbrokes, Inmarsat, Aviva, Hill & Smith

AGM/EGM

Investec

Friday 5 August

Trading Statements

Royal Bank of Scotland, HSBC, Kennedy Wilson Europe Real Estate, Royal Bank of Scotland, HSBC, William Hill, esure

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.