Companies reporting this week

By THIS IS MONEY
Updated:

 

PHOTO booths operator Photo-Me International is expected to restore dividend payments to shareholders when it unveils its full-year results on Monday after a substantial recovery over the past 12 months.

Delays in rolling out new digital minilabs and stiff competition drove the company £2.2m into the red last year, but it is expected to bounce back with annual pre-tax profits of £20.6m this time around.

Pub operator Honeycombe Leisure is expected to report more subdued trading at some of its Inns and Taverns outlets when it posts full year results on Monday.

Broker Charles Stanley has consequently reduced its forecast of pre-tax profits for 2004 by £70,000 to £1.85m.

The broker said the managed pub operator is likely to report a continued satisfactory performance, although trading conditions had been mixed since the announcement of the interim results in January.

Software and IT services supplier Northgate Information Solutions is tipped to turn in a 35% increase in adjusted pre-tax profits to £8.1m when it posts full year figures on Monday.

Broker Baird says the business is fundamentally stronger than it was a couple of years ago thanks to closures, disposals and acquisitions.

The business has a clear strategy and growth opportunities in its two chosen markets of personnel outsourcing and the police and emergency services are significant.

Baird said it was comfortable with Northgate's acquisition of RebusHR, given the clear strategic rationale for the deal and its modestly earnings-enhancing qualities.

Floorings retailer Carpetright overcame tough trading conditions last year to record an upturn in sales just before Christmas, while aggressive price promotions at the start of January have also helped to boost sales.

On Tuesday, the group is due to report its results for the 12 months to May 1 and analysts are expecting pre-tax profits of up to £64m compared with £57.1m posted last year.

Music and books retailer HMV cheered investors in April by forecasting annual profits at the top end of expectations after its strong Christmas performance continued into the rest of the financial year.

Analysts expect HMV to unveil pre-tax profits of £116m on Wednesday against £96.5m at the same stage last year.

The increase in profits will reflect lower interest charges, reduced losses in North America and strong sales of DVDs in the UK where the group trades as Waterstone's and the HMV music chain.

According to fund manager Investec, the group will be broadly debt free by April and management is likely to use these results to highlight a strategy of returning up to £50m in cash to shareholders each year.

Investors will be looking for evidence that Somerfield's shake-up of Kwik Save is gathering pace when the combined supermarket group reports full-year figures on Wednesday.

Deutsche Bank is seeking pre-tax profits of £46m for 200 3/4 and £60m for 2004/5, assuming an acceleration in refits and disposals of Kwik Save outlets following Somerfield's acquisition of the discount chain in 1998.

Lower running costs resulting from the integration of the two businesses and better cost management meant Somerfield delivered first half profits at the top end of expectations.

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