Companies reporting next week

HEAVYWEIGHTS from across the market are due to turn in half-yearly numbers or annual results next week.

Details of future cost savings are expected to drive the share price at Imperial Tobacco when it reports final pre-tax results on Monday.

Many analysts increased their estimates of 2004 savings above company guidance after Imperial said in September that it would provide a 'very clear steer' on savings.

If management indicates a small increase, there could be some downgrades to 2004 earnings forecasts, according to broker Gerrard.

Headline pre-tax profits are tipped to increase by about 38% to £880m, on a 43% rise in sales.

Results are likely to appear misleading due to the first time contribution from German firm Reemtsma, which it bought in March last year for £3.5bn.

On Tuesday, analysts are expecting a strong showing from Vodafone when it issues its half-year results. A 19% rise in pre-tax profits to about £5.02bn is expected.

Expansion of its international businesses, with Southern Europe performing especially well, may owe a great deal to currency movements and could hide signs that top-line growth is slowing, fund manager Gerrard said.

Many eyes will be trained on Japan, where subscriber growth has been a concern, and hopes are mounting of a big hike in the dividend if forecasts of double-digit cash generation prove accurate.

On Wednesday, food retailer Sainsbury is set to report an increase of just 3.5% in half-year pre-tax profits to £354m, fuelling criticism that its pricing has been out of step with rivals such as Tesco and Wm Morrison, which released strong figures recently.

Sainsbury said negative like-for-like sales were due to a business transformation programme with a warning that it may not meet its reorganisation timetable.

Disappointment among investors at lower sales growth at Shaws in the US - part of the Sainsbury group - could be dispelled if the supermarket chain confirms it is meeting cost-cutting targets.

Safeway's interim results on Thursday could be its last before it is swallowed up by the Wm Morrison supermarket chain. Analysts predicting a 7% drop in half-year pre-tax profits to £173.3m.

Like-for-like sales are set to increase slightly against market expectations and Safeway has cut capital expenditure and has been successful in generating a better cash flow.

Preparations for its takeover have included negotiating sales of the stores Wm Morrison is not allowed to keep, while Safeway shareholders await an update on the offer for their interests, expected to be close to the initial bid of 277.5p per share.

Also on Thursday, National Grid Transco is expected to report interim pre-tax profits of £384.7m against £339m last time.

The market will be looking for reassurances about the risk of financial fallout from the high profile power cuts in the UK and US in recent months.

Interest is also expected in any further comments about a possible break-up and disposal of parts of the Transco local gas distribution network. Market watchers are also hoping for a dividend increase.

GUS, the owner of catalogue retailer Argos and majority shareholder in fashion house Burberry, is not expected to offer any surprises when it posts an anticipated 38.5% rise in interim profits to £342m on Thursday.

The group's first half trading statement exceeded market expectations for all its divisions, with Argos turning in like-for-like sales growth of 7%.

Burberry is due to report an 18% rise in interim pre-tax profits to £61.3m on Tuesday and GUS said it had performed well.

GUS is thought likely to update the market on the progress of the partial initial public offering of South African Retail and the integration of its acquisition of DIY chain Homebase.