London Report: Royal Mail set to deliver first annual results

YEARLY results for Royal Mail this week are likely to inflame anger over the company’s issue price, as analysts expect a significant profit leap.

JP Morgan said recently it “remains bullish” and set a target price of 756p a share – a huge jump from the 330p offer price.

In economic news, the Bank of England will on Wednesday publish its first set of minutes since moving to the second phase of forward guidance. Analysts are likely to study the minutes closely for signs of when a rate rise will happen.

Inflation figures for April are forecast to show price rises have remained steady in April.

Howard Archer, of IHS Global Insight, said: “Consumer price inflation may have edged up to 1.7 per cent in April ... partly due to the impact of the later Easter on air transport prices.”

The Office for National Statistics will also release a second estimate for UK growth in the first quarter, with the rate expected to remain unchanged at 0.8 per cent.

The corporate calendar starts today with full-year results from Cranswick, e2v technologies and Mitie.

Bioquell, Chesnara, DRS Data & Research Services, IFG Group, Innovation Group, ITE Group, Ricardo and Shaftesbury will also give figures.

Tomorrow Babcock International, Big Yellow Group, Bloomsbury Publishing, blur Group, BTG, Homeserve, Intermediate Capital Group, Marks & Spencer and Vodafone will all give end-of-year results, while Afren Group, Fusionex International, Paragon Group of Companies, Spirax-Sarco Engineering, Topps Tiles, Treatt and Victrex will also update the market.

Wednesday’s final figures will come from Burberry, Cable & Wireless Communications, FirstGroup, Great Portland Estates, SSE, Stobart, Telecom Plus, Vectura and UK Mail.

Amara Mining, Britvic and VERIPOS will also report.

On Thursday Dairy Crest, Electrocomponents, Halfords, Hogg Robinson Group, Investec, Mothercare, QinetiQ Group, Royal Mail, SABMiller, United Utilities, Vtech Holdings and Young & CO’s Brewery will all give final figures while Arrow Global, Daily Mail and General Trust and Mitchells & Butlers will give interim numbers.

On Friday Close Brothers, Moss Bros and Quintain Estates & Development will report.