Market Watch: International performance set to bolster recruitment firm

By PETER RANSCOMBE
Published on 26/08/2012 00:00

RECRUITMENT firm Hays will lay bare the challenges in the jobs market when it posts full-year figures on Thursday.

The group has reported increasingly poor numbers for its loss-making UK arm as the double-dip recession takes its toll. Plans for a UK turnaround remain crucial, said UBS analyst William Vanderpump. However, the City expects underlying profits of £126 million against £114m a year earlier thanks to the performance of Hays’ international division.

Car insurer Admiral is set to report profits higher on Thursday as it continues to grow its share of the market, while the bodily injury claims that blighted last year’s results are expected to ease.

Christopher Esson, an analyst at Credit Suisse, expects the group to report a 10 per cent rise in pre-tax profits to £176m in the first half of 2012. However, that would mark a slowdown on the previous year, when it reported a 27 per cent hike.

Global communications giant WPP will give its latest outlook on the advertising industry when it reports interims on Thursday.

The group put in a resilient performance in its last financial year, shrugging off the Eurozone crisis and UK double dip recession to report record revenues of £10 billion and profits of £1bn. Analysts are expecting half-year revenues to have grown by 3.8 per cent.

The owner of the Frankie & Benny’s restaurant chain is 
set to serve up another healthy increase in profits on Friday but analysts fear its strong growth rates will soon start to come under pressure.

The Restaurant Group, which owns 400 sites and also runs the Chiquito and Garfunkel’s brands, has seen its share price push close to its pre-recession peaks following a series of bullish updates.

Tomorrow: London Stock Exchange closed for English bank holiday

Tuesday: Bunzl, Cairn Energy, G4S, Lamprell, Regus, UTV Media

Wednesday: Paddy Power, Serco

Thursday: Admiral, Hays, Marshalls, Melrose, WPP

Friday: Bwin, Chesnara, Marshalls, Restaurant Group