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Week Ahead: Domino's Pizza, M&S AGM
09-07-2010 13:06
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There has been no stopping pizza delivery franchiser Domino's Pizza and it is a cast iron certainty that it has had a better World Cup than, say, the England football team. It has certainly delivered more.
Last week the number three operator in the UK pizza delivery market, Papa John, reported 9.7% growth in second quarter like for like (LFL) sales compared to the second quarter of 2009, a slight decrease in the growth rate than it registered in the second quarter.
This could signal a similar scenario at Domino's, which releases interim results on Monday. Panmure Gordon thinks Domino's will report 10% growth year on year in LFL sales for the half year, with the second quarter seeing 9.5% LFL sales growth.
"We think the market will be disappointed by a slowdown in LFL sales growth at Domino's in a quarter where comparatives are the easiest of the year (c+5%) and there is the beneficial impact of the football World Cup," Panmure predicts. It thinks the shares are a sell and has a price target of 300p.
Panmure Gordon is predicting pre-tax profit of £16.3m, up by around a fifth on the first half performance last year, and slightly below market consensus of £16.5m. The broker thinks the firm will bump up the interim dividend in line with the growth in pre-tax profits, which would imply a dividend of 4.20p per share if Panmure Gordon's estimate is correct.
KBC Peel Hunt takes a contrary view and is half expecting the trading update to result in earnings upgrades for the full year as it suspects the management has, as usual, been downplaying its prospects. KBC, like Panmure, also goes for £16.3m profit before tax.
"There could also be share buybacks, presumably by way of tender offer, as last time. It should be remembered that (1) the upgrade is partly in the price and is now routinely expected (2) there could always be stock placings by directors," KBC adds.
The annual general meeting (AGM) of shareholders of retail giant Marks & Spencer could be lively, with director remuneration likely to prove a hot issue.
The new chief executive, Marc Bolland, was lured at great expense from supermarket chain Morrisons and he did not make a good first impression on the City with his downbeat demeanour at his first results presentation on 7 July.
The City scribblers are anxious for Bolland to reveal his plans for the High Street icon but he won't be rushed, promising that a strategic review will be unveiled in November of this year.
Marks & Spencer has had several clashes with investors over corporate governance in recent years, including disagreements over Bolland's predecessor, Sir Stuart Rose, combining the chief executive officer role with that of chairman.
Institutional investors have been getting more bolshie about executive pay of late, as evidenced by last week's AGM for supermarket giant Tesco, where almost a third of shareholders voted against the executive remuneration package and another 15% abstained.
A similar result is not out of the question at Marks & Spencer but, as with Tesco, the board is likely to plough on regardless with its plans which include a first year pay package for Bolland that could reach £15m while Rose, now only a part time chairman, is set to rake in £875,000, making him the highest paid chairman of a FTSE 100 company.
Monday July 12
INTERIMS
Domino's Pizza UK & IRL
INTERIM DIVIDEND PAYMENT DATE
Intec Telecom Systems
GMS
Avis Europe
FINALS
Immunodiagnostic Systems, Invista Foundation Property Trust, KSK Power Ventur
SPECIAL DIVIDEND PAYMENT DATE
Capital Gearing Trust
EGMS
LED International
AGMS
Griffin Mining, JPMorgan Private Equity Ltd USD Equity Shares, Medilink-Global UK, Perpetual Income & Growth Inv Trust, Perpetual Income&Growth Inv Tst Sub Shs
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Current Account (FRA) (07:45)
Domestic CGPI (JPN)
UK ECONOMIC ANNOUNCEMENTS
Balance of Payments (09:30)
Current Account (09:30)
GDP (quarterly national accounts) (09:30)
Index of Services (09:30)
FINAL DIVIDEND PAYMENT DATE
Capital Gearing Trust
Tuesday July 13
INTERIMS
Low & Bonar
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
ABC Consumer Confidence (US) (22:00)
Balance of Trade (US) (13:30)
Treasury Budget Statement (US) (19:00)
Consumer Prices Index (FRA) (07:45)
ZEW Survey (EU) (10:00)
ZEW Survey (GER) (10:00)
Industrial Production (JPN)
Capacity Utilisation (JPN)
Consumer Confidence (JPN)
FINALS
Bglobal, DTZ Holdings, Ocean Power Technologies
AGMS
British Airways, BTG, Intermediate Capital Group, Luminar Group, Northern Foods, Ventus 1 VCT, Ventus 2 VCT, Ventus 2 VCT 'C' Shares, Ventus VCT 'C' Shares, Young & Co's Brewery 'A'
TRADING ANNOUNCEMENTS
Computacenter, Webis Holdings
UK ECONOMIC ANNOUNCEMENTS
BRC Sales Monitor (00:01)
Consumer Price Index (09:30)
Retail Price Index (09:30)
DCLG UK House Prices
RICS Housing Market Survey (09:30)
FINAL DIVIDEND PAYMENT DATE
Albany Inv Trust, May Gurney Integrated Services
Wednesday July 14
INTERIMS
1st Dental Laboratories
INTERIM EX-DIVIDEND DATE
Asset Man Inv Trust, Chemring Group, Dewhurst, Domino Printing, Holidaybreak
QUARTERLY PAYMENT DATE
Yamana Gold Inc
QUARTERLY EX-DIVIDEND DATE
Henderson Global Property Companies Ltd., Investors Capital Trust 'A' Shares
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Business Inventories (US) (13:30)
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)
Import and Export Price Indexes (US) (13:30)
Industrial Production (EU) (10:00)
MBA Mortgage Applications (US) (12:00)
Retail Sales (US) (13:45)
Retail Sales Inventories (US) (15:15)
Bank of Japan MPC Meeting (JPN)
GMS
City of London Investment Group
FINALS
International Greetings, MDM Engineering Group, O Twelve Estates, Sovereign Reversions
IMSS
JD Wetherspoon, London Stock Exchange Group
EGMS
ACP Mezzanine Ltd.
AGMS
BlueCrest AllBlue Fund GBP Shares, Cyprotex, Foresight 4 VCT, ICAP, London Stock Exchange Group, Marks & Spencer Group, Mitie Group, Octopus Protected VCT 1, Sainsbury (J), Sutton Harbour, Telecom Plus, Volex, Wynnstay Properties
TRADING ANNOUNCEMENTS
Ashmore Group, ASOS, Barratt Developments, EMIS, Rio Tinto, Thorntons
UK ECONOMIC ANNOUNCEMENTS
Claimant Count Rate (09:30)
Unemployment Rate (09:30)
Average Weekly Earnings (09:30)
FINAL DIVIDEND PAYMENT DATE
Autoclenz, Big Yellow Group, Whitbread
FINAL EX-DIVIDEND DATE
Amati VCT , Empresaria Group, Establishment Inv Trust, FirstGroup, GB Group, Hornby, IBIS Media VCT, Intermediate Capital Group, Invesco Asia Trust, Majestic Wine, Mountview Estate, Schroder UK Growth Fund, Sepura, Telecom Plus, TP70 2008 (I) VCT, TP70 2008 (II) VCT
Thursday July 15
INTERIM DIVIDEND PAYMENT DATE
Euromoney Institutional Investor
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Capacity Utilisation (US) (16:15)
Continuing Claims (US) (13:30)
ECB Report (EU) (09:00)
Harmonised Competitiveness Indicators (EU) (09:00)
Industrial Production (US) (16:15)
Initial Jobless Claims (US) (13:30)
New Car Registrations (EU) (10:00)
Philadelphia Fed Index (US) (15:00)
Producer Price Index (US) (13:30)
Empire State Manufacturing Survey (US) (13:30)
Bank of Japan Target Rate (JPN)
Machine Tool Orders (JPN)
FINALS
Supergroup
UK ECONOMIC ANNOUNCEMENTS
Bank of England Housing Equity Withdrawal (09:30)
ANNUAL REPORT
DS Smith, DSG International
IMSS
Electrocomponents, Experian Group
EGMS
ET-China
AGMS
Brulines, Burberry Group, Conexion Media Group, Electrocomponents, Finsbury Worldwide Pharmaceutical Trust, Hamworthy, JPMorgan European Inv Trust Growth Shares, JPMorgan European Inv Trust Income Shares, Mothercare, MW TOPS Ltd. EUR Shares, MW TOPS Ltd. GBP Shares, MW TOPS Ltd. USD Shares, Nature Group, Oxford Technology 2 VCT, Oxford Technology 3 VCT, Oxford Technology 4 VCT, Oxford Technology VCT, SVM UK Active Fund, Telford Homes
TRADING ANNOUNCEMENTS
Mothercare, Premier Oil
FINAL DIVIDEND PAYMENT DATE
Alliance Pharma, JPMorgan European Fledgling Inv Trust, UTV Media, Young & Co's Brewery 'A'
Friday July 16
INTERIM DIVIDEND PAYMENT DATE
Marshall Monteagle Hldgs, RWS Holdings, Scottish Inv Trust, Superglass Holdings
QUARTERLY EX-DIVIDEND DATE
Caterpillar
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (EU) (10:00)
Consumer Price Index (US) (13:30)
U. of Michigan Confidence (US) (15:00)
GMS
Real Office Group
FINALS
The Clapham House Group
ANNUAL REPORT
Scott Wilson
IMSS
Record
EGMS
Qmulus
AGMS
Asian Plantation (DI), Biotech Growth Trust, British Land Co, DCC, Invesco Income Growth Trust, KCOM Group, SVM UK Emerging Fund
TRADING ANNOUNCEMENTS
BlueBay Asset Management, Record, Spectris
FINAL DIVIDEND PAYMENT DATE
Game Group, Harvey Nash Group, Marks & Spencer Group, New Century AIM VCT 2, Oxford Technology 3 VCT, Oxford Technology VCT, PayPoint, Sainsbury (J), Telford Homes, Tribal Group, Ukrproduct Group, Value and Income Trust, Vislink
Last week the number three operator in the UK pizza delivery market, Papa John, reported 9.7% growth in second quarter like for like (LFL) sales compared to the second quarter of 2009, a slight decrease in the growth rate than it registered in the second quarter.
This could signal a similar scenario at Domino's, which releases interim results on Monday. Panmure Gordon thinks Domino's will report 10% growth year on year in LFL sales for the half year, with the second quarter seeing 9.5% LFL sales growth.
"We think the market will be disappointed by a slowdown in LFL sales growth at Domino's in a quarter where comparatives are the easiest of the year (c+5%) and there is the beneficial impact of the football World Cup," Panmure predicts. It thinks the shares are a sell and has a price target of 300p.
Panmure Gordon is predicting pre-tax profit of £16.3m, up by around a fifth on the first half performance last year, and slightly below market consensus of £16.5m. The broker thinks the firm will bump up the interim dividend in line with the growth in pre-tax profits, which would imply a dividend of 4.20p per share if Panmure Gordon's estimate is correct.
KBC Peel Hunt takes a contrary view and is half expecting the trading update to result in earnings upgrades for the full year as it suspects the management has, as usual, been downplaying its prospects. KBC, like Panmure, also goes for £16.3m profit before tax.
"There could also be share buybacks, presumably by way of tender offer, as last time. It should be remembered that (1) the upgrade is partly in the price and is now routinely expected (2) there could always be stock placings by directors," KBC adds.
The annual general meeting (AGM) of shareholders of retail giant Marks & Spencer could be lively, with director remuneration likely to prove a hot issue.
The new chief executive, Marc Bolland, was lured at great expense from supermarket chain Morrisons and he did not make a good first impression on the City with his downbeat demeanour at his first results presentation on 7 July.
The City scribblers are anxious for Bolland to reveal his plans for the High Street icon but he won't be rushed, promising that a strategic review will be unveiled in November of this year.
Marks & Spencer has had several clashes with investors over corporate governance in recent years, including disagreements over Bolland's predecessor, Sir Stuart Rose, combining the chief executive officer role with that of chairman.
Institutional investors have been getting more bolshie about executive pay of late, as evidenced by last week's AGM for supermarket giant Tesco, where almost a third of shareholders voted against the executive remuneration package and another 15% abstained.
A similar result is not out of the question at Marks & Spencer but, as with Tesco, the board is likely to plough on regardless with its plans which include a first year pay package for Bolland that could reach £15m while Rose, now only a part time chairman, is set to rake in £875,000, making him the highest paid chairman of a FTSE 100 company.
Monday July 12
INTERIMS
Domino's Pizza UK & IRL
INTERIM DIVIDEND PAYMENT DATE
Intec Telecom Systems
GMS
Avis Europe
FINALS
Immunodiagnostic Systems, Invista Foundation Property Trust, KSK Power Ventur
SPECIAL DIVIDEND PAYMENT DATE
Capital Gearing Trust
EGMS
LED International
AGMS
Griffin Mining, JPMorgan Private Equity Ltd USD Equity Shares, Medilink-Global UK, Perpetual Income & Growth Inv Trust, Perpetual Income&Growth Inv Tst Sub Shs
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Current Account (FRA) (07:45)
Domestic CGPI (JPN)
UK ECONOMIC ANNOUNCEMENTS
Balance of Payments (09:30)
Current Account (09:30)
GDP (quarterly national accounts) (09:30)
Index of Services (09:30)
FINAL DIVIDEND PAYMENT DATE
Capital Gearing Trust
Tuesday July 13
INTERIMS
Low & Bonar
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
ABC Consumer Confidence (US) (22:00)
Balance of Trade (US) (13:30)
Treasury Budget Statement (US) (19:00)
Consumer Prices Index (FRA) (07:45)
ZEW Survey (EU) (10:00)
ZEW Survey (GER) (10:00)
Industrial Production (JPN)
Capacity Utilisation (JPN)
Consumer Confidence (JPN)
FINALS
Bglobal, DTZ Holdings, Ocean Power Technologies
AGMS
British Airways, BTG, Intermediate Capital Group, Luminar Group, Northern Foods, Ventus 1 VCT, Ventus 2 VCT, Ventus 2 VCT 'C' Shares, Ventus VCT 'C' Shares, Young & Co's Brewery 'A'
TRADING ANNOUNCEMENTS
Computacenter, Webis Holdings
UK ECONOMIC ANNOUNCEMENTS
BRC Sales Monitor (00:01)
Consumer Price Index (09:30)
Retail Price Index (09:30)
DCLG UK House Prices
RICS Housing Market Survey (09:30)
FINAL DIVIDEND PAYMENT DATE
Albany Inv Trust, May Gurney Integrated Services
Wednesday July 14
INTERIMS
1st Dental Laboratories
INTERIM EX-DIVIDEND DATE
Asset Man Inv Trust, Chemring Group, Dewhurst, Domino Printing, Holidaybreak
QUARTERLY PAYMENT DATE
Yamana Gold Inc
QUARTERLY EX-DIVIDEND DATE
Henderson Global Property Companies Ltd., Investors Capital Trust 'A' Shares
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Business Inventories (US) (13:30)
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)
Import and Export Price Indexes (US) (13:30)
Industrial Production (EU) (10:00)
MBA Mortgage Applications (US) (12:00)
Retail Sales (US) (13:45)
Retail Sales Inventories (US) (15:15)
Bank of Japan MPC Meeting (JPN)
GMS
City of London Investment Group
FINALS
International Greetings, MDM Engineering Group, O Twelve Estates, Sovereign Reversions
IMSS
JD Wetherspoon, London Stock Exchange Group
EGMS
ACP Mezzanine Ltd.
AGMS
BlueCrest AllBlue Fund GBP Shares, Cyprotex, Foresight 4 VCT, ICAP, London Stock Exchange Group, Marks & Spencer Group, Mitie Group, Octopus Protected VCT 1, Sainsbury (J), Sutton Harbour, Telecom Plus, Volex, Wynnstay Properties
TRADING ANNOUNCEMENTS
Ashmore Group, ASOS, Barratt Developments, EMIS, Rio Tinto, Thorntons
UK ECONOMIC ANNOUNCEMENTS
Claimant Count Rate (09:30)
Unemployment Rate (09:30)
Average Weekly Earnings (09:30)
FINAL DIVIDEND PAYMENT DATE
Autoclenz, Big Yellow Group, Whitbread
FINAL EX-DIVIDEND DATE
Amati VCT , Empresaria Group, Establishment Inv Trust, FirstGroup, GB Group, Hornby, IBIS Media VCT, Intermediate Capital Group, Invesco Asia Trust, Majestic Wine, Mountview Estate, Schroder UK Growth Fund, Sepura, Telecom Plus, TP70 2008 (I) VCT, TP70 2008 (II) VCT
Thursday July 15
INTERIM DIVIDEND PAYMENT DATE
Euromoney Institutional Investor
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Capacity Utilisation (US) (16:15)
Continuing Claims (US) (13:30)
ECB Report (EU) (09:00)
Harmonised Competitiveness Indicators (EU) (09:00)
Industrial Production (US) (16:15)
Initial Jobless Claims (US) (13:30)
New Car Registrations (EU) (10:00)
Philadelphia Fed Index (US) (15:00)
Producer Price Index (US) (13:30)
Empire State Manufacturing Survey (US) (13:30)
Bank of Japan Target Rate (JPN)
Machine Tool Orders (JPN)
FINALS
Supergroup
UK ECONOMIC ANNOUNCEMENTS
Bank of England Housing Equity Withdrawal (09:30)
ANNUAL REPORT
DS Smith, DSG International
IMSS
Electrocomponents, Experian Group
EGMS
ET-China
AGMS
Brulines, Burberry Group, Conexion Media Group, Electrocomponents, Finsbury Worldwide Pharmaceutical Trust, Hamworthy, JPMorgan European Inv Trust Growth Shares, JPMorgan European Inv Trust Income Shares, Mothercare, MW TOPS Ltd. EUR Shares, MW TOPS Ltd. GBP Shares, MW TOPS Ltd. USD Shares, Nature Group, Oxford Technology 2 VCT, Oxford Technology 3 VCT, Oxford Technology 4 VCT, Oxford Technology VCT, SVM UK Active Fund, Telford Homes
TRADING ANNOUNCEMENTS
Mothercare, Premier Oil
FINAL DIVIDEND PAYMENT DATE
Alliance Pharma, JPMorgan European Fledgling Inv Trust, UTV Media, Young & Co's Brewery 'A'
Friday July 16
INTERIM DIVIDEND PAYMENT DATE
Marshall Monteagle Hldgs, RWS Holdings, Scottish Inv Trust, Superglass Holdings
QUARTERLY EX-DIVIDEND DATE
Caterpillar
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (EU) (10:00)
Consumer Price Index (US) (13:30)
U. of Michigan Confidence (US) (15:00)
GMS
Real Office Group
FINALS
The Clapham House Group
ANNUAL REPORT
Scott Wilson
IMSS
Record
EGMS
Qmulus
AGMS
Asian Plantation (DI), Biotech Growth Trust, British Land Co, DCC, Invesco Income Growth Trust, KCOM Group, SVM UK Emerging Fund
TRADING ANNOUNCEMENTS
BlueBay Asset Management, Record, Spectris
FINAL DIVIDEND PAYMENT DATE
Game Group, Harvey Nash Group, Marks & Spencer Group, New Century AIM VCT 2, Oxford Technology 3 VCT, Oxford Technology VCT, PayPoint, Sainsbury (J), Telford Homes, Tribal Group, Ukrproduct Group, Value and Income Trust, Vislink
| Related share prices |
|---|
| Marks & Spencer Group (MKS) share price |
| Domino's Pizza UK & IRL (DOM) share price |
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