WOS.L Share News (WOS)

Having expanded rapidly prior to the recession in the last decade, plumbers' merchant Wolseley has spent the last few years slimming down again and slashing its debt mountain, but it seems to be on an even keel again now.The firm releases interim results on Tuesday and broker Charles Stanley is predicting profit before tax of £255m, up from £195m at the half-way stage last year. The broker expects the interim dividend will be hiked to 18p from 15p."We expect the interim results for the six months to January 2012 to mirror the good performance in the first quarter," Charles Stanley analyst Tony Shepard said. "In Q1 [first quarter], a standout feature was the performance from the USA which was the largest contributor to revenue (£1,531m, up 10% LFL [like-for-like]) and profit (£80m, up 29%). Although Residential and Repair & Maintenance markets have been flat, the Blended Branches business has generated strong growth and there was an improved contribution from the Industrial and Waterworks business. In addition, two bolt-on acquisitions for £29m have been completed," Shepard noted.Meanwhile, US broker Jefferies reckons investor focus will be centred on Wolseley's level of top line performance versus toughening comparisons, and whether the current level of out-performance in the US can be sustained. It will also be looking for an update on the planned use of the balance sheet. "Options previously discussed have been a step up in their organic investment/acquisition strategy, an increased dividend payment or to return cash to shareholders," Jefferies observes."US will remain key. Unsurprisingly we expect discussions around the US to dominate proceedings on the 27th. Despite an improving macro environment we believe continued toughening comparisons could provide a slight dampener to headline LFL increases in the second half. Of most interest to us will be whether Wolseley has managed to continue its impressive market out-performance. Last year, management estimate that US sales growth was around 7% above that of the overall market," Jefferies said.Contract caterer Compass is also set to issue a trading statement. Credit Suisse is hedging its bets, saying its earning forecasts are looking on the conservative side given "encouraging US macro trends, falling cost inflation and signs of stronger public sector contract opportunities.""Feedback from our meeting with Compass's US head of strategy gives us renewed confidence in the scope for further margin progress and the depth of new contract opportunities including within support services and emerging markets," Credit Suisse added.INTERIMSBellway, WolseleyINTERNATIONAL ECONOMIC ANNOUNCEMENTSConsumer Confidence (US) (15:00)FINALS888 Holdings, Abbey Protection, Acencia Debt Strategies Ltd., Afren, Augean, CPP Group, EnQuest, Immupharma, Kazakhmys, Mam Funds, Mission Marketing Group, OJSC Novolipetsk Steel GDS (Reg S), Resolution Ltd., Vindon Healthcare, VislinkANNUAL REPORTAvocet Mining, Modern Water, Rentokil Initial, Ultra Electronics HoldingsAGMSAb Electrolux, Aukett Fitzroy Robinson Group, Beazley, Hazel Renewable Energy VCT 1, Hazel Renewable Energy VCT 1 A Shares, Hazel Renewable Energy VCT 2, Hazel Renewable Energy VCT 2 A Shares, Lo-Q, MCB Bank Ltd. GDR (Reg S), PhytopharmTRADING ANNOUNCEMENTSCompass GroupUK ECONOMIC ANNOUNCEMENTSCBI Distributive Trades Surveys (11:00)jh