Week Ahead

Investors eye M&G dividend | Next on the rise

M&G Kildean
M&G’s offices in Stirling where it remains a big employer

Asset and wealth manager M&G‘s CEO Andrea Rossi, now almost a year and a half into the job, may have more to say on his attempts to improve fund managers’ performance, cut costs and simplify organisational structure.

The company announces full-year results on Thursday and there are reports that the transformational plan is on track to achieve £50 million in run-rate savings in 2023.

That included a voluntary redundancy programme affecting 200 employees and some senior management changes. This should feed through to higher savings in Thursday’s full-year results. Cost savings could hit £200m by next year.

Sector observers believe a break-up cannot be ruled out, but in the meantime investors seem happy with the near-9% dividend yield on the shares.

Next has hiked its guidance for sales growth and proftits no fewer than five times in the past year, says AJ Bell’s Russ Mould who expects a 4% rise in annual pre-tax profit to £905 million.

Prudential’s shares are down by nearly a third over the past year, dragged lower by markets’ disappointment with how the economies of Hong Kong and China are failing to show markedly improved momentum after the conclusion of their lengthy lockdowns imposed because of Covid-19.

Analysts will look for updates on its recent equity stakes, its FatFace takeover and the ongoing integration of Joules.

The economics news will be dominated by inflation figures on Wednesday and the Bank of England decision on interest rates on Thursday.

DIARY

Monday 18 March

  • Full-year results from Marshalls
  • Rightmove UK house price index

Tuesday 19 March

  • Full-year results from Sabre Insurance, Essentra, Diversified Energy, Midwich, Harworth and Zotefoams
  • First-half results from DFS Furniture and Close Brothers

Wednesday 20 March

  • Full-year results from Computacenter
  • UK inflation
  • EU consumer confidence survey
  • US Federal Reserve monetary policy decision

Thursday 21 March

  • Full-year results from M&G, Next, Direct Line Insurance, Dowlais, Judges Scientific, Energean and i3 Energy
  • Trading statement from C&C Group
  • Bank of England interest rate decision

Friday 22 March

  • Full-year results from Phoenix Group and Wickes
  • First-half results from JD Wetherspoon
  • UK GfK consumer confidence survey
  • UK retail sales


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