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The Markets
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The Markets
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Thursday's agenda: Henry Boot set to kick profits higher

Housebuilder set to report annual profits slightly above expectations

Henry Boot plc (LON:BHY) is tipped to turn in profits slightly above expectations when the housebuilder reports annual results on Thursday.

Analysts expect the builder and property developer to report "robust growth" in its land development arm, driven by volume rather than price inflation.

"Looking forward, we do not expect a significant change to this trend, with pricing relatively flat but continued growth in demand for land as housebuilding activity increases," Numis Securities analysts said.

Numis expects a stronger second half for the company's property division as it completed a number of development properties, although it would be offset by write-downs on slower-moving investment sites.

"Nonetheless, we believe this division will underpin the group's earnings growth over the medium term," the broker's Christen Hjorth said.

"Finally, we expect a continuation of steady growth in the construction division as industry conditions improve."

Numis expects pre-tax profit of £29.9mln against £28.3mln a year ago.

There is also expected to be news from the high street as fashion retailer Next plc (LON:NXT) posts annual numbers.

Numis is forecasting annual profits of £825mln against £770mln beforehand from Next, which blamed mild weather and weaker online trading for a downbeat January update.

"We expect investor attention to focus on updated guidance for FY17, where initially the group expected sales to increase by between +1% and +6%, with profit growing in line," analyst Matthew Taylor said.

Company and economic news also due:

Diploma (trading update).

Economic news: UK February retail sales; Monthly distributive trade survey (CBI). US: Advance report on durable goods manufacturers' shipments, inventories and orders – February.

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