Companies reporting next week

BATTERED investors will be able to gain a further insight into the health of the corporate sector next week with reports by

Drinks and sweets giant Cadbury is forecast to serve up higher first half profits on Wednesday, fuelled by the group's thirst for acquisitions over the past two years. Deals for beverage brands such as Snapple and Orangina are expected to help make up for tough trading in the American carbonated soft drinks sector which has hit Cadbury's Dr Pepper and Seven Up operations.

Confectionery is thought to have performed well and analysts will be focusing on Cadbury's projections for its US drinks arm and the impact of the weaker US dollar. Interim pre-tax profits are set to rise 10% to £385 million.

The housing boom should prove the foundation for a healthy rise in Northern Rock's profits when the mortgage bank kicks off the bank reporting season by posting half-year results on Thursday. Fund manager Gerrard believes the bank will register pre-tax profits of £145m, up 11% on the same period a year ago, as strong loan growth and continued cost efficiencies feed through to the bottom line.

Despite the increased credit risk in the sector Northern Rock is expected to reassure investors and stick to full-year targets given fatter margins and the rapid growth in personal unsecured lending.

Software firm Misys issued a trading update at the end of its financial year last month and as such most attention in next Thursday's annual results is likely to be fixed on the outlook for the key banking and securities division.

A cut in IT spending by investment banks is expected to have sent operating profits in the banking operation down by 30% in the 12 months to May 31, contributing to a 25% fall in group pre-tax profits to £87.7m.

The group said last month it had been encouraged by the strength of its banking order book, while profits in its financial services division were flat. Healthcare is likely to remain Misys' star performer.

Shares in support services group Mitie have fallen 35% since the turn of the year despite the firm's defensive profile and impressive growth built on the back of the trend towards greater outsourcing. Concerns about whether the company will be able to sustain recent 25% gains in annual earnings has weighed on the stock as well as chairman David Telling's decision to sell two million shares in April.

Annual pre-tax profits for the year to 31 March are expected to come in at £30.7m, up from £25.1m 12 months ago, on Monday but analysts will want reassurance about the strength of its long-term order book.

The City will be seeking confirmation from chip designer Parthus Technologies that it remains on track to move into the black later this year when it reports second quarter figures on Wednesday. Parthus said in April that it had a strong sales pipeline but the downturn in the tech sector is expected to leave revenues for the three months to 30 June at $10.75m (£7m), little changed on the first quarter. Estimates for the half-year pre-tax loss centre around £4m but the group is expected to break even in the current quarter as the benefits of its acquisition of US group DSP's IP licensing arm are felt.

The dilemma facing the Bank of England will again be highlighted on Tuesday when official figures are expected to show the underlying rate of inflation fell to its lowest level since records began in June.

Economic experts predict low food and petrol prices will push the underlying rate from 1.8% to either 1.7% or 1.6%, perilously close to the 1.5% level at which the Bank has to write an explanatory letter to the Chancellor.

With pressure on the Bank to raise interest rates a fall in inflation could increase speculation the Bank may wait for the price index to move back up again as cyclical movements work their way out of the figures.