Companies reporting next week

BANKS, insurers and publishers are among a swathe of top-flight corporates expected to turn in full and half-yearly results.

Investors will have plenty to digest when brewer Scottish & Newcastle reports results for the eight months to 31 December on Monday.

The company has recently offloaded its pubs division for £2.5bn and taken steps to shake-up its operations with a controversial decision to sell its 150-year-old Fountain brewery in Edinburgh. These moves towards a leaner S&N have done little to quell market speculation that the group could be about to play some part in the consolidation of the sector.

Pre-tax profits are expected to fall to £430m from £467m last time. Analysts will be particularly interested in the potential for further cost savings and improved profits in the UK beer division Scottish Courage.

Prudential investors will be braced for a tough day on Tuesday as full-year results from the insurer are set to be accompanied by a cut in the annual dividend and an announcement on bonuses.

The Pru said last year that it expects a 40% reduction in its annual dividend to 16p - the first dividend cut since 1914. And long-term savers will be waiting to see if the insurer slashes bonuses on with-profits policies or keeps them on hold to reflect recovering markets.

The market will also be watching for news on discussions over a possible sale of Prudential's 79% stake in online bank Egg. Prudential is expected to turn in pre-tax profits of £869 million, compared with £1.13 billion previously.

Norwich Union owner Aviva has already told the City that it expects operating profits to be ahead of previous expectations - up 12% to £1.9bn.

Despite the improved performance, Aviva announced in December that it would cut 2,350 jobs and ?export‘ work to India. It later said it would cut its Hill House Hammond insurance intermediary, with the loss of up to 1,600 jobs.

Aviva has already published its 2003 business numbers and these were good in the light of difficult equity markets. Sales of life and pensions products were little changed, while investment products were on the increase.

Investors and analysts will be hoping to get a 'clean set of figures' from defence and aerospace group BAE Systems on Thursday. BAE has already said it expects operating profits to be flat against 2002, with some growth offset by the weak dollar and higher pension costs.

Analysts say an absence of nasty surprises such as exceptional one-off provisions relating to major contracts, which have caused a low rating on the group in the past, would boost the management's credibility. Attention will focus on the group's assessment of progress in its programmes division, with the main uncertainty being Eurofighter deliveries.

News on progress in the hunt for a replacement for current chairman Sir Richard Evans will also be welcomed. The group is expected to report full-year profits of £770m against £796m last time.

Also on Thursday, mortgage bank Abbey will have the opportunity to update investors on its progress since shocking the market with annual losses of £984m last year. This time losses of up to £240m are forecast.

Retail banking, which is at the forefront of the new-look company's focus, is expected to produce few trading surprises. The market will be watching out for its share of the mortgage market and any signs of declining margins.

Investors will also be seeking more news about disposals by the bank's former wholesale arm - the portfolio business unit - particularly the sale of rail-leasing business Angel Trains.

They will also want news on unrealised gains or losses on divestments and details about when proceeds are going to be returned to shareholders.

The market will be keeping an eye out for evidence of slowing momentum at HBOS when the Halifax and Bank of Scotland group reports its finals on Wednesday.

Growth in mortgages, interest margins and market share are expected to come under scrutiny, although bad debts are expected to remain low.

Overall, the results - which are tipped to include a rise in profits to £3.8bn from £3.54bn previously - should show strong revenue momentum relative to its peer group.

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