Companies reporting this week

By THIS IS MONEY
Updated:

 

BLUE-chips such as BAE Systems, Diageo and Reuters are due to update the market next week. Investors will be keen for business forecasts amid the uncertain climate.

Former building society Bradford & Bingley will continue the banking reporting season on Tuesday, when it is expected to report full-year pre-tax profits of £275m, against £271m last time. The group has moved away from first-time buyers in favour of niche mortgage lending such as commercial and buy-to-let, as well as selling products from other financial groups.

The market wants an update on progress in its new areas. But analysts at fund manager Gerrard said growing distribution revenues during a bear equity market was challenging, with the result being 'lacklustre top and bottom-line growth'.

Comet-to-B&Q group Kingfisher is expected to report good growth in DIY sales when it reports trading figures for the three months to 2 February, also on Tuesday. However, evidence suggests it was a relatively weak Christmas for electrical goods in the UK, which analysts say will hurt Comet's performance.

Overall group retail profit is thought likely to be flat on the year-earlier period. Pundits want news on Kingfisher's separation plans for its electrical division - a demerger is seen as the most likely option. But as this is not expected to happen until the summer, Kingfisher may wait until March before making an announcement.

Pre-tax profits at news and information group Reuters, due Tuesday, are tipped to fall to £106m from £304m for the full year. Demand has collapsed among its chief customers, financial institutions, and sales are forecast to be off 6%. The City wants Reuters' take on prospects and cost-cutting.

AB Ports, which owns and operates 21 ports in the UK including Cardiff, Newport and Southampton, is expected to report a 4% rise in full-year pre-tax profits on Wednesday, at £135m.

NatWest Stockbrokers said the group will show a strong second-half performance from property development and its container ports divisions, and a higher than expected contribution from AMPORTS, which provides services to automotive manufacturers. However, uncertainty in the market has increased.

Household products group Reckitt Benckiser has focused on improving its operating efficiency, which has allowed a rise in margins over the past year. Full-year pre-tax profits, due Wednesday, are tipped to have risen to £550m from £474m.

However the group has warned of tougher trading and an adverse currency effect, and some analysts fear fourth-quarter sales are down on the third. As Reckitt is highly cash-generative, the market will be looking for possible special dividend payouts or share buybacks.

Defence group BAE Systems shocked the market in December as it warned of delays and cost overruns on two major programmes - Nimrod aircraft and Astute submarines. The City fears these could cost BAE up to £1bn, and on Thursday analysts will be looking for detailed guidance.

Elsewhere profits should be supported from buoyant US defence markets, a steady performance from BAE's Saudi Arabian support activities and a relatively robust contribution from Airbus, the aircraft consortium in which BAE holds 20%. Gerrard forecasts pre-tax profits will tumble to £830m from £1.08bn.

Johnny Walker-to-Guinness group Diageo is forecast to report full-year pre-tax profits of £2.1bn on Thursday, from £2.04bn the previous year. The sale of its Pillsbury food arm and the delay in selling Burger King - completed in December - is expected to have hurt results.

But the acquisition of Seagram's spirits and wine business is likely to have cushioned the blow. Diageo teamed up with French rival Pernod to buy the wines and spirits arm of Seagram in a £5.7bn deal in 2001.

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