Thursday preview: Hikma, PV Crystalox, retail sales

Acquisitions are set to put a gloss on the interim results of pharmaceuticals firm Hikma on Thursday.Peel Hunt is expecting the group to report sales of more than $500m, up 25% on the first half of last year when, admittedly, results had been negatively affected by the so-called Arab Spring.Sales will be down slightly over the $523m achieved in the second half of last year, the broker predicts, "with the problems in US generics (FDA-enforced shut down) offsetting the additional pro-forma sales from the Moroccan acquisition, which made only a three-month contribution last year"One thing to watch out for is the EBITA [earnings before interest, tax and amortisation] margin, which Peel Hunt thinks will likely take a hit from a competitive pricing environment for generic drugs in the US and continued wage pressure in the Middle East & North Africa (MENA) region. Peel Hunt has pencilled in a margin decline of six-tenths to eight-tenths of a percentage point. "We expect margins (and the tax rate) to benefit further as more Generics manufacturing is transferred to Jordan (up to 50% is still targeted). Hikma's net debt to EBITDA [EBITA + depreciation] stands well within covenants and further bolt-on acquisitions remain possible, with Turkey high up management ambitions. Furthermore, acceleration of product development and a move into higher-value treatments for chronic diseases remain key to organic growth across MENA," Peel Hunt said. Interim results from struggling solar panel maker PV Crystalox could reveal whether the company is going to stick or twist in terms of holding on for an upturn in average selling prices.The group has received a €90m one-off payment in compensation for a contract cancellation, which should ensure it makes a first half profit, probably somewhere in the €70m region.As to what to do with the cash windfall, the group is expected to reveal whether it will essentially run the business for cash from now on.UK retail sales data for July will cover a period between the end of the Queens Jubilee celebration and Euro 2012 and the start of the Olympics, so analysis of underlying trends may be easier than of late - notwithstanding the weather effect, of course.Economists at Credit Suisse think UK Retail Sales, excluding vehicle fuel, will rise 0.3% after advancing 0.2% in June, to a level 2.2% higher than in July 2011.In contrast, Charles Stanley's weekly preview note has July retail sales excluding fuel down 0.2% in July, and up 1.7% year-on-year, so confusion - like the British weather - still reigns.NTERIMS BATM Advanced Communications Ltd., Cineworld Group, Hikma Pharmaceuticals, PV Crystalox Solar, Talvivaara Mining Company, Xaar INTERNATIONAL ECONOMIC ANNOUNCEMENTS Bloomberg Consumer Confidence (US) (14:45) Building Permits (US) (13:30) Consumer Price Index (EU) (10:00) Continuing Claims (US) (13:30) Harmonised Index of Consumer Prices (EU) (10:00) Housing Starts (US) (13:30) Initial Jobless Claims (US) (13:30) Philadelphia Fed Index (US) (15:00) Q2 Talvivaara Mining Company GMS Aegis Group, Energy Technique IMSS Micro Focus International AGMS IGas Energy, Triad Group UK ECONOMIC ANNOUNCEMENTS Internet Retail Sales (09:30) Retail Sales (09:30) FINAL DIVIDEND PAYMENT DATE F&C Global Smaller Companies, Moss Bros Group, MS InternationalJH