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Cineworld and Savills financial results in the spotlight for Thursday

Investors will be looking to Cineworld for news of asset integration, whereas for Savills results the attention will be on its battle for market share.
Cineworld acquired US movie theater chain Regal Entertainment earlier this year

Investors will naturally have a keen interest in the ongoing integration of the recently acquired Regal Entertainment business when Cineworld PLC (LON:CINE) reports full-year numbers on Thursday, though, according to Deutsche Bank analyst James Wheatcroft, financial results statement will be too soon for a “meaningful” update.

Wheatcroft, in a preview note, highlighted that investors in the cinema group will also have a significant interest in the US box-office trends which he believes are “encouraging”.

“We think performance in the 'old' CINE estate is likely to remain backstage simply due to the likely solid performance and greater interest in the better understanding Regal,” the analyst said.

Given the group’s current post-acquisition situation financial comparators will likely be tenuous, but, of course, not irrelevant.

Strong results in UK and Asia boost Savills

Property services provider Savills PLC (LON:SVS) boasted in January of a stronger-than-anticipated finish to 2017 so shareholders will be keen to see whether the momentum has been maintained when the group publishes its full-year results on Thursday.

“In the UK, we saw increased market share in commercial transactions, primarily as a result of relatively robust occupier demand and continued strong investment interest from the Asia Pacific region. Our Less Transactional businesses, both in the UK and globally, performed in line with our expectations,” the company said, as it raised market expectations for the year just ended.

Numis Securities responded by cranking up its profit before tax forecast for 2017 by 5% to £140mln on sales of £1.5bn. It predicts Savills will have had net cash at the end of 2017 of around £100mln.

A strong performance in the UK and Asia more than offset a decline in profits from the US, where the company is investing to build the business.

“We expect US profits to fall fairly substantially in the current year despite broadly flat revenue, predominantly reflecting the cost of the new New York Capital Markets team (c.US$10mln), but also subdued occupier demand particularly in Government related transactions, where Studley is a major player.

“Given that the new team will prove less of a headwind through 2018 and the pipeline of activity has improved, we forecast a bounce-back in 2018,” Numis said.

Significant events due on Thursday March 15:

Finals: Old Mutual PLC (LON:OML), Cineworld PLC (LON:CINE), Curtis Banks Group PLC (LON:CBP), Forbidden Technologies plc (LON:FBT), Just Group PLC (LON:JUST), Kier Group PLC (LON:KIE), Manx Telecom PLC (LON:MANX), Oakley Capital Investments Ltd (LON:OCI), OneSavings Bank PLC LON:OSB), Phoenix Group Holdings PLC (LON:PHNX), Portmeirion Group PLC (LON:PMP), Savills PLC (LON:SCS), Spirax-Sarco Engineering PLC (LON:SPX), TMT Investments PLC (LON:TMT)

Trading update: Amryt Pharma PLC (LON:AMYT)

Ex-dividends: To knock 1.4 points off FTSE 100 index - Anglo American PLC (LON:AAL), Hammerson PLC (LON:HMSO)

Economic data: US weekly jobless claims; Philly Fed business outlook; Empire State manufacturing

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