Utility Pennon Group plc (LON:PNN) is expected to report a solid set of results with industry-leading returns from the water business.
The main focus, however, could be on Viridor, the recycling and waste management business.
“We believe the key focus is likely to be on Viridor where we expect an update on the termination process for the Greater Manchester PFI contract and on the delayed Glasgow energy-from-waste plant,” said Deutsche Bank.
The Greater Manchester Waste Disposal Authority wants to exit its contract to recycle water and use some of it as fuel to generate electricity 17 years early. In its last update, Pennon said progress was being made on the final agreement with the authority.
“While Viridor has faced some challenges over the last year, we believe the results may provide scope for the company to reassure on its performance,” the German bank added.
As Deutsche (DB) also observed, the results will be overshadowed by events on the regulatory front and the attempts by political parties to jump on the Ed Miliband bandwagon and keep a lid on utility price rises.
DB is tipping a 6% increase in underlying earnings (EBITDA) to £259mln from £245mln at the halfway stage last year.
Earnings per share are expected to rise 5% to 24.8p from 23.6p, while the all-important dividend should rise to 11.9p from 11.1p, in line with the company’s policy.
The company plans to increase its dividend pay-out by four percentage points above the rate of retail price index inflation over the next 10 years.
More details on Norwich factory closure expected in Britvic’s finals
Not too many surprises are expected from Britvic Plc’s (LON:BVIC) full-year results on Wednesday, with the drinks maker recently stating that revenue and operating profit expectations are on track.
The UK accounts for slightly more than 40% of group revenue, so poor weather might have dampened sales slightly in Britvic’s home market in the final quarter.
The re-launch of Britvic’s iconic mixer range, complete with new bottles, has helped to boost sales of its carbonated drinks, although growth there has been offset by declining sales of its still drinks.
The company still faces an uphill battle to wrest the initiative back from Fever Tree.
Analysts expect the rapid 11% like-for-like revenue growth seen in France in the third quarter to have turned negative in the final few months of the year, while trading conditions are also expected to have toughened in Brazil where it bought concentrates and juices business Bela Ischia Alimentos for £55mln earlier this year.
More details about the recent decision to close its factory in Norwich, where it makes Fruit Shoots and Robinsons squash, are also expected.
Significant announcements expected
Trading updates: Eve Sleep Plc (LON:EVE), Softcat PLC (LON:SCT)
Interims: Findel PLC (LON:FDL), LondonMetric Property PLC (LON:LMP), Motorpoint Group PLC (LON:MOTR), Pennon PLC (LON:PNN), Redcentric PLC (LON:RCN), RPC Group PLC (LON:RPC), Telford Homes plc (LON:TEF), Versarien PLC (LON:VRS),
Finals: Brewin Dolphin Holdings PLC (LON:BRW), Britvic Plc (LON:BVIC), Impax Asset Management Group PLC (LON:IPX), ZPG Plc (LON:ZPG)
Economic data: UK consumer credit, mortgage approvals; US preliminary Q3 GDP; US pending home sales; US Beige Book