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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Pharma & Biotech

Week ahead: Last but not least - Barclays

Banking titan Barclays reports full year results on Tuesday....

Hope you're not tiring of banking results after this week's feast.

Because there's more to come next week, with behemoth Barclays (LON:BARC) taking to the stand on Tuesday.

It's certainly been a mixed bag so far. On Friday, RBS (LON:RBS) shares sank over 8% as it unveiled its eighth annual loss after another round of write-downs, provisions and restructuring costs. The market did not seem impressed.

But Lloyds (LON:LLOY) on Thursday saw its shares surge over 13% - the biggest intraday high for years - as it posted higher annual profits but took a £4bn hit for insurance mis-selling.

Notably, it recommended a final dividend of 1.5p per share, resulting in a total annual pay-out of 2.25p. It also proposed a capital distribution in the form of a special dividend of 0.5p per share.

Investec's banking analyst Ian Gordon said he saw Lloyds’ earnings recovery story as merely “deferred” rather than “cancelled” and said the firm's underlying performance was broadly “in line” with a better mix than anticipated.

The Lloyds special divi was picked up on by commentators and traders will be keen to see what Barclays has to say on the matter next week.

At the start of 2015, it said it continued to target a 40-50% payout ratio but at the half-year, new chairman John McFarlane said the target for a particular ratio was being dropped.

Consensus forecast is that management will pay the same 3.5p final dividend and 6.5p total payout as last year.

Pre-tax profit for the year is expected to come in at £6.1bn against an actual figure of £5.1bn at the nine month stage.

On Monday, we are also due to get results from newspaper group Trinity Mirror (LON:TRIN) and there should be very limited scope for a surprise in 2015 numbers, reckons broker Numis, which rates shares a 'buy'.

The key focus in this release will be current trading and outlook comments, particularly given the disappointing January national advertising performance reported in the recent DMGT trading update, reckons analyst Gareth Davies, who targets 298p.

"We assume a dividend of 5p for the year and closing net debt of £128m. The four key areas of focus in the release and analyst meeting will be: 1) the launch of New Day, 2) current trading and outlook comments, 3) an update on the Localworld integration, 4) any further comment on the appeal to the Supreme Court re phone hacking.

"Trinity shares remain exceptionally good value at current levels, we reiterate our Buy and blended multiples target of 298p into results.

Announcements expected

Monday

Bunzl; Hiscox; Johnson Service Group; Jupiter Fund Management; Keller; Senior; Trinity Mirror; Ultra Electronics Interims PureCircle; River & Mercantile

Tuesday

Barclays; Devro; Direct Line; Elementis; Fresnillo; Glencore; Greggs; Hutchison China MediTech; IP Group; Jardine Lloyd Thompson; Just Eat; McColl's Retail Group; moneysupermarket.com; Regus; Rotork; Servelec; Taylor Wimpey; Tullett Prebon

Wednesday

Costain; Dignity; Intertek; ITV; James Fisher and Sons; Laird; Nichols; Novae; Synthomer; Tarsus; Virgin Money, Clinigen, Stagecoach

Thursday

Admiral; Aggreko; Arrow Global; BBA Aviation; Carillion; Cobham; CRH; Domino's Pizza; Genel Energy; H&T Group; Headlam; Hunting; Impellam; Melrose; RPS; Schroders; Shawbrook; Spirax-Sarco; Travis Perkins; Vesuvius

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