London Stock Exchange (LON:LSE) is expected to report a record increase in full year profits on Friday despite being without a permanent chief executive after Xavier Rolet was forced out by the chairman.
Analysts forecast a 25% rise in earnings to £955mln in 2017.
However, the results are likely to be overshadowed by questions about the group’s leadership following the departure of Rolet in November.
Chairman Donald Brydon also plans to stand down in 2019 after hedge fund manager Sir Chris Hohln called for his resignation over the ousting of Rolet.
Holn, whose The Children's Investment (TCI) fund owns 5% of the LSE, had claimed the chairman forced out Rolet against his will and that he should stay because he has driven value creation at the LSE.
Chief financial officer, David Warren, has been appointed as interim chief executive until a successor is found.
Investors will be looking for further clarity on the company’s future leadership and are likely to raise questions about M&A following last year’s failed attempt to merge with Germany’s Deutsche Boerse.
Mondi to serve up special divi
Mondi Plc (LON:MNDI) also reports its full year results with analysts expecting the packaging and paper company to announce a special dividend.
Deutsche Bank reckons that a €750mln special dividend could be on the way on top of the €300mln normal dividend despite the company warning that it sees its underlying performance for the year being “modestly below market expectations”.
Mondi has complained that continuing cost pressures and negative currency impacts have had an impact on profits. However, this has been offset by higher average selling prices and strong demand for consumer packaging on the back of growth in online shopping.
For 2018, Deutsche Bank thinks underlying earnings (EBITDA) should approach €1.5bn and adjusted earnings per share will increase 7.5% year-on-year.
However, it acknowledged that Mondi will find it tough to lift its 20% returns and that new sales momentum from capital projects will only start to accrue in 2019.
Significant events due:
Finals: Essentra PLC (LON:ESNT), IMI PLC (LON:IMI), London Stock Exchange PLC (LON:LSE), Mondii PLC (LON:MNDI), Spire Healthcare Group PLC (LON:SPI)
Interims: Revolution Bars Group PLC (LON:RBG)
Economic data: UK construction PMI; University of Michigan consumer sentiment index