Companies reporting this week

By THIS IS MONEY
Updated:

 

BRITISH Airways kick off a week that features results from some of the country's best-known companies. This time last year, BA posted pre-tax losses of £200m for the 12 months to March 31 as competition from low-cost rivals and the fall-out from September 11 took their toll.

The flag carrier has since been battered by the run-up to war in Iraq and, more recently, Sars. BA has been attacked costs by cutting capacity and speeding up its jobs cull. Analysts are divided about the effectiveness of these moves and profits forecasts ahead of Monday's full-year results vary widely from £56m to £225m.

On Tuesday, retailer Marks & Spencer will not see the benefits of the Easter rush when it unveils profits for the year to the end of March because of the timing of the holiday this year.

But at the time of its fourth-quarter trading statement, the company said full-year profits would come in at the top end of expectations - which ranged from £710m to £720m.

Analysts are not expecting too many surprises on Wednesday when National Grid Transco issues full-year figures. The group has already warned of a £30m blow from its decision to suspend recognition of pension surplus credits. Analysts at stockbroker Gerrard expect pre-tax profits to come in at £1.23bn - compared to £797m last year.

The figure is expected to reflect progress on cost savings both against its own targets and from synergies arising from the merger of National Grid with Lattice.

Telecoms giant BT releases final results on Thursday. With no exposure to the mobile phones market, profits growth is not expected to be overly dramatic and investors will be looking at other indicators such as margin improvements.

Nevertheless analysts at broker Gerrard are hoping for pre-tax profits of £1.86bn, up from last year's £1.46bn. There could also be grim news on the state of BT's pension fund.

Interim results from InterContinental Hotels on Thursday are certain to reflect the downturn in the industry caused by the lead up to war in Iraq and the outbreak of the Sars virus in Asia.

Covering the period from October to March, the results are also likely show that operating profits are even more depressed than under the ownership of SixContinents, the leisure group from which InterContinental demerged just weeks ago. Maiden interim profits of around £80m are expected.

The other half of the former SixContinents - pubs and restaurants business Mitchells & Butlers - also announces its maiden interim results on Thursday. Since March better weather and the end of major fighting in Iraq have eased pressure on the firm and sales should show some pick-up at the end of the period. Gerrard is forecasting maiden interim pre-tax profits of £110m.

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