Companies reporting this week

By THIS IS MONEY
Updated:

 

THE WOES of engine maker Rolls-Royce have been well flagged and the market is braced on Thursday for a sharp fall in half-year profits, a steep increase in debt and a significant deficit in pension funds when reported under proposed new accounting rules, says fund manager Gerrard.

The fall in civil aviation demand has hit new engine deliveries, with profits in the civil division likely to be halved, while the group has already taken action to reduce capacity.

The disruption caused by rationalisation is likely to leave a mark on figures, with profits for the six months to June 30 forecast to fall to £100m from the £186m achieved last time.

Investors are already expecting unspectacular results from advertising group WPP on Tuesday after it warned in June that like-for-like revenues were down 8% and offered little hope of an immediate recovery.

With the downturn in business expected to continue, WPP is considered unlikely to meet its operating margin target of 15%. Gerrard has forecast half-year pre-tax profits of £215m compared with the £252m a year ago.

Temporary power supplier Aggreko's interim results on Wednesday will focus on the US, which creates around 50% of revenues and where difficulties led to a profits warning in June.

The company will have benefited from major contracts at the Winter Olympics and football's World Cup, but half-year figures are still expected to be down to £23.5m from £26.2m a year earlier.

Countrywide Assured, the estate agency and financial services group, should demonstrate the benefits of a buoyant housing market when it reports interim results on Thursday.

The group achieved a 30% hike in interim pre-tax profits to £27.5m last year and is expected to improve that figure by another £8m this time.

Earlier this month, Wembley took a major step in its transformation into a track-based gaming company by agreeing to sell the Wembley complex, including the arena, conference centre and exhibition halls, for £48m.

The deal with Quintain Estates enables the group to focus on its greyhound tracks at Oxford, Birmingham, Manchester, Portsmouth, Wimbledon and Catford and on its US operations featuring Rhode Island casino and a number of racetracks.

Analysts are expecting interim pre-tax profits on Monday to improve from £16.2m in 2001 to £17m this time around.

Economists will be looking for confirmation that High Street spending has stabilised when retail sales figures for July are published on Thursday.

High Street sales volumes fell 0.7% in June to the weakest level in two years as shoppers were distracted by the Jubilee celebrations and the World Cup, the Office for National Statistics reported.

But recent surveys from the British Retail Consortium and the CBI indicated that sales are now more steady with NatWest Stockbrokers forecasting a 0.4% rise in July's figure and 4.5% rise on a year earlier.

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