Companies reporting next week

MORTGAGE bank

Earlier this year, the group forecast a 20% increase in first-half lending as it said good employment levels, a housing shortage and relatively low debt servicing costs would keep the market buoyant.

Pre-tax profits for the period are expected to come in at £204m against £186.2m, according to stockbroker Charles Stanley. The broker said that although margins would be down by a few points, this was expected to be offset by an improvement in costs.

Confectionery group Cadbury Schweppes, which reports interims on Wednesday, revealed an encouraging start to the year when it met shareholders at its annual meeting in May, with Easter sales slightly ahead on last year.

US sales were boosted by the integration of drinks business Dr Pepper, while its recently-acquired Adams gum and medicated sweet business was said to be performing well.

Stockbroker Gerrard says the group still had some difficulties to overcome concerning the performance of Snapple beverages, the recovery of Seven Up in the US and the weak Irish confectionery market.

The broker expects Cadbury to report pre-tax profits of £364m on Wednesday, down slightly from £365m last year. Cadbury reported a 32% fall in annual profits for 2003 after a 'transitional' year.

The market will be focusing on the group's targets to raise underlying sales by 3% to 5%.

Investors will focus on anti-cholesterol drug Crestor when pharmaceuticals giant AstraZeneca updates the market on its second quarter on Thursday.

They will be interested in the drug's market share, especially in the US, where concerns have been raised about potential side-effects.

Crestor was launched in the US in mid-September and is seen as central to Astra's strategy as it seeks to shrug off the impact of sales of cheap copies of its ulcer drug Losec by rivals.

Chief executive Sir Tom McKillop said in October that the London-based company was poised to 'deliver top-tier financial performance' because of its product range, which also includes lung cancer treatment Iressa.

AstraZeneca is tipped by stockbroker Charles Stanley to post profits of 1.07bn US dollars (£571m) for the three months to June 30, compared with 936m US dollars (£500m) last time.

Furniture group MFI is likely to provide a gloomy update on Thursday as analysts expect a sharp fall in half-year profits and a continuation of the competitive trading conditions currently affecting the sector.

Sales have disappointed so far this year as MFI sees consumers become more cautious about spending on big-ticket items and rivals step up their war on prices. The company, which also owns the Howden Joinery business, has also blamed the disruption of a refurbishment programme for its troubles.

Broker Charles Stanley has forecast profits for the 24 weeks to June 12 of £35m, against £54.5m a year earlier. It is also looking for news on rumours of a management buyout - a move that analysts believe could herald the demerger of Howden or the sale of UK retail operations, featuring 214 outlets.

Interim results from internet bank Egg on Thursday may well be overshadowed by an announcement on the sale of Prudential's 79% stake in the business.

A deal came a step closer earlier this week when Egg said it was closing its La Carte Egg operation in France because the Pru had found little enthusiasm from potential buyers to take on the ailing division.

The problems with the French operation, which Egg only launched in November 2002, will again have an impact on the half-year results, which analysts expect to show losses of £12.4m, against £22.8m last time. The cross-Channel woes will mask a more promising UK performance.

High street retailer Boots is expected to announce a rise of up to 4% in first quarter like-for-like sales when it faces shareholders at the company's annual general meeting on Thursday.

Under the leadership of chief executive Richard Baker, who took the helm in September, Boots has shown signs of improved trading with a 2.9% rise in annual profits and seven quarters in a row of sales growth.

Mr Baker has cut costs and improved the lay-out of stores, but analysts will be looking for any comments about margins as retail rivals - particularly Asda and Tesco - continue to fight hard on prices.