Companies reporting next week

By THIS IS MONEY
Updated:

 

A CLUTCH of interim results from blue-chip companies and the Bank of England's monthly interest rate meeting will provide plenty of interest next week.

On Tuesday, Halifax, which is poised to complete a merger with Bank of Scotland this autumn, is set to reveal a 5% fall in first-half profits. The results are expected to reflect the impact of heavy spending on diversification from its core home loan business, but they are likely to be overshadowed by interest in the merger plan to create the UK's fifth biggest bank. Interim pre-tax profits are likely to fall from £885m to £842m as revenues continue to come under pressure.

Barclays' interim results on Thursday will be the first to include full figures from the Woolwich, which it bought last year. The acquisition, along with a joint venture with Legal & General, should plug gaps in the area of mortgages and long-term savings. The bank looks set to post a 9% increase in pre-tax profits to £2bn. However, sluggish lending figures and a reduction in wealth management fees are likely to be identified as problem areas.

Oil giant Shell's pre-tax profits on Thursday are expected to surge again in the second quarter, lifting to $3.51bn (£2.47bn) from $3.15bn (£2.2bn) a year ago. That comes despite lower volumes at Shell's refineries and weaker margins in the downstream business in Singapore and Europe. But a strong dollar should help the performance while the gas and power business is on course to show a rise in earnings.

Figures from Baltimore Technologies should make interesting reading on Thursday as the software security firm said earlier this month that second-quarter revenues would be considerably below market forecasts. The Dublin-based group is also likely to announce staff cuts following an operational review. Revenues are set to be £15.5m for the quarter, compared with £23.7m a year earlier.

Powergen's takeover offer from German firm E.ON is dominating City minds at present, so most analysts will be looking on Thursday for a timetable on the necessary European and US regulatory approvals.

With a takeover imminent, interest in the interim results is likely to be limited to the group's performance in the generation market since new trading arrangements were introduced in March. Pre-tax profits are expected to fall £40m to £260m.

Building materials group Hanson will provide better news from the US when it publishes its interim results on Thursday. Despite the economic downturn, a solid housing market and better weather should add to a strong result in the US, where Hanson earns about 65% of its profits.

Stockbroker Gerrard forecasts interim pre-tax profits of £130m, slightly down on the £131.9m achieved last year, as Hanson continues to feel the heat from higher fuel costs.

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