Companies reporting next week

ANNUAL results from banking giant

HSBC is expected to unveil record profits by a British bank when it reports on Monday, with analysts predicting a 32% rise to £7.1bn, surpassing the figure set by the Royal Bank of Scotland earlier this month.

But fund manager Gerrard said the results will be more confusing than usual due to the inclusion of last year's acquisitions, especially US-based consumer finance firm Household International, which will add 15% to the profits rise.

Engineering group GKN forecast a 9% fall in pre-tax profits to £242m in a pre-close trading update, but it has a good track record of exceeding estimates and analysts are hoping this will continue to be the case when it posts annual results on Monday.

Financial Times owner Pearson delivered a cautious view on the outcome for 2003 in December, with the impact of the weaker US dollar and lower profits from the professional education division being partially offset by a lower tax rate.

The performance of the FT is expected to lift the overall figures, with analysts expecting Pearson to post pre-tax profits of £400m for the 12 months to December 31, compared with £399m a year ago.

Expectations of a strong set of results on Monday from housebuilder Persimmon were boosted by a positive pre-close trading update on Friday that stated property sales and demand had been robust since June. Pre-tax profits are expected to rise 28% to £344m in 2003.

The strength of Persimmon's balance sheet has revived speculation that the group may be ready to make another company-transforming deal which could propel it into the FTSE 100 Index and lift the status of the housebuilding sector.

The decision by ports and ferries group P&O to reduce its share in container shipping business P&O Nedlloyd will have a dilutive affect on profits for 2003, due to be unveiled on Thursday.

Analysts are expecting pre-tax profits of £88m for the 12 months from £19m a year ago, boosted by a strong performance at its container ports arm, which grew operating profits by 15% in the first half of 2003.

On Wednesday, ITV will deliver its first results since it was formed by the merger of Carlton Communications and Granada, although most of the information will be known since the two partners have already announced their results for the year to the end of September 2003.

Attention will focus on the outlook for 2004 with advertising revenues, which account for around 70% of turnover, set to pick up as the group benefits from major sports events such as the Olympic Games and the European football championships.

The market is expecting pre-tax profits of £250m in the 12 months against £230m a year ago and will look for any comment on the potential for cost savings to exceed present expectations.