Confidence on the London market faces a major test next week as a host of blue-chip companies prepare to deliver figures.
Once more, the impact of the US terrorist crisis on corporate performances will be of most concern.
Airports operator BAA will provide a further update on passenger demand since the US atrocities when it issues interim results on Monday.
BAA has already reported a 6% fall in traffic during September and the release of new numbers will interest both the City and the aviation industry.
The crisis should impact on figures for the six months to 30 September, which are still expected to hit £333m against £326m last time.
Some of the fizz behind Allied Domecq’s recent acquisition of champagne houses Mumm and Perrier-Jouet may have disappeared following 11 September.
The pair did well for Allied in the first-half but that picture could have changed when the drinks giant reports its final results on Tuesday.
Allied has been active with several acquisitions, including New Zealand-based Montana Wines, in an effort to boost its brand portfolio.
Analysts are expecting pretax profits to lift from £417m to £460m, although this does not include a tax rebate in Mexico which could add up to £50m to the figure.
Retailer Matalan’s presence in the discount sector should serve it well if fears of a high street slowdown come true.
Matalan issues half-year figures on Wednesday, but most interest will be on current trading, with fund manager Gerrard estimating a 10% lift in like-for-like sales during the second half.
Gerrard expects a similar figure for the first half, although that will be slightly down on the 11.6% recorded at the 19-week stage.
Pretax profits are likely to rise from £40.5m to £50m following a number of new store openings.
ICI could report a fall of up to 19% in third-quarter profits on Thursday as the paint-to-chemicals group faces up to tough economic conditions.
Around 30% of sales come from the US, where ICI is now more reliant on strong consumer confidence because of increasing strength in paints, food starches, flavours and fragrances.
Debt levels of £3bn are also of concern to analysts, who expect the group’s final dividend payment to be reduced early next year.
Third-quarter profits are forecast to reach £102m, compared with £122m.
EGi News 29/10/01
Shell’s recent habit of posting upbeat figures should come to an end
onThursday as it becomes the latest oil company to show negative
earnings growth.
However, upstream operations involving exploration and production are
unlikely
to have suffered to the same extent as some of its rivals.
For a start, Shell does not have high exposure to US natural gas
prices which
have fallen by around 30% on an annual basis.
But refining margins have declined significantly in all regions
outside the US
as Shell is expected to show a third-quarter profit of 2.82 billion
US dollars
(#1.97 billion), against 3.53 billion US dollars (#2.47bn) last time.
Forecasts of annual revenue growth of 22% should help reduce BSkyB’s
first
quarter pre-tax loss on Friday to #25 million from #31.7 million
previously.
Healthy subscriber numbers and an increase in the average amount paid
by each
user are benefiting the pay-TV operation.
However, analysts are expecting a slight slowdown in quarterly
subscriber
growth after BSkyB switched off its analogue signal earlier this
year, and
Gerrard believes around 60,000 customers will not have moved to
digital
services.
Consumer giant Unilever disappointed the City with a trading
statement that
indicated sales growth in the third quarter was likely to slow to 4%.
If that is proved correct on Friday, earnings will only have grown by
less
than 2% in the nine months so far – leaving Unilever with a mountain
to climb to
meet its target of “low double digit” earnings growth for this year.
Considering the events of September 11, it is likely prospects will
have
weakened further since the earlier trading statement. Pre-tax profits
for the
third-quarter are expected to fall to #968 million from #986 million.
ends
The Press Association
