Tuesday preview: Ashmore, Abcam

Date: Monday 12 Sep 2011

Fund manager Ashmore is set to issue full-year results on Tuesday. Singer Capital Markets is a fan of the shares and expects that with positive returns since the company’s financial year end, flow momentum will have remained strong. “Furthermore, the flagship external debt fund, EMLIP, crystallises performance fees in August. Having generated positive alpha we expect that this could provide further scope for upgraded performance fee guidance for FY’12 [fiscal 2012[,” Singer said.

“Ashmore is to be promoted to FTSE100 (as from 19th September) which could provide a further fillip to the shares,” the broker added.

Ashmore’s pre-close update n July revealed that assets under management (AUM) stood at $65.8bn at the end of June. Singer expects this to have grown since then, continuing the new inflow of funds highlighted in the July update.

“We expect Ashmore to report full year net revenues of £341m including pre-announced performance fees of £85m (2010: £83m). Profit before tax is forecast at £249m (2010: £217m) with diluted EPS of 25.8p (2010: 22.5p). Our estimates are broadly in-line with consensus. We forecast a final dividend of 10.34p making 14.5p for the full year (2010: 13.0p),” the broker added.

Bioscience firm Abcam is set to announce “superb results” if broker Peel Hunt is to be believed. Market consensus is for profit before tax of £32.13m, up from £25.83m the year before, on sales of £83.7m (2009/10: £71.1m).

“Management are likely (rightly) to caution on a slowdown in US academic spending and any weakness this stimulates is an opportunity. Our focus is the outlook for Abcam to deploy more of its £50m+ cash pile, which could drive Abcam's sector-leading returns even higher (double Immunodiagnostic’s ROE [return on equity], triple Hikma's), leading to further upgrades,” Peel Hunt said.

INTERIMS
BrainJuicer Group, Cello Group, Charlemagne Capital Ltd., Fairpoint Group, Hilton Food Group, InterQuest Group

INTERIM DIVIDEND PAYMENT DATE
Fresnillo, Mondi

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Price Index (FRA) (06:30)
Current Account (FRA) (07:45)
NFIB Small Business Optimism (12:30)
Import and Export Price Indices (US) (13:30)
Treasury Budget Statement (US) (19:00)

GMS
Colefax Group

FINALS
Abcam, Ashmore Group, Town Centre Securities

IMSS
IG Group Holdings

EGMS
Argo Real Estate Opportunities Fund, OJSC Rosneft GDRS (Reg S)

AGMS
Colefax Group, Downing Distribution VCT 1, First Property Group, Harvard International, Liontrust Asset Managament, Oxford Instruments, Prosperity Voskhod Fund Ltd.

UK ECONOMIC ANNOUNCEMENTS
Consumer Price Index (09:30)
Retail Price Index (09:30)
RICS Housing Market Survey (09:30)
DCLG House Prices (09:30)
Trade Balance (09:30)

FINAL DIVIDEND PAYMENT DATE
DS Smith

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