Companies reporting next week

AIRPORTS group

After a period of recovery from the Iraq war, international passenger growth is settling back to the long term trend of 4% to 5%.

Broker Charles Stanley sees BAA's shares as fairly valued and is advising shareholders to hold on to them.

Discount retailer Matalan will reveal current trading figures when it updates the market on Tuesday. Investors will be looking for evidence that Matalan can show a significant uplift in profits following a weak performance in the second half of last year.

The signs so far this year have been positive, with the retailer reporting an 'encouraging' 4.5% improvement in like-for-like sales for the first six months, in a pre-close update last month.

Matalan has been bouncing back from a 48% slump in annual profits with a range of initiatives, and broker Charles Stanley expects it to post pre-tax profits of £43.6m, up from £41.2m.

News on upcoming rail franchise awards is going to be key for bus and rail company First Group, which reports interim figures on Wednesday.

Although rail passenger volumes have improved, the profits outlook of the UK's biggest bus operator, which also runs four rail franchises, depends on the outcome of bids for franchises such as East Coast or Integrated Kent. A half-year profit forecast was not available, but the group made £56.8m last time and one broker is advising investors to hold the shares.

Both Scottish Power (SP) and Scottish & Southern Energy (SSE) are due to report interims.

On Wednesday Fund manager Gerrard expects SP to post pre-tax profits of £423m against £393m last time, while on Thursday, SSE is tipped to turn in an 11% rise in profits to £255m.

SP is expected to say it saw an improved first half operational performance compared to last year, with the well flagged weaknesses in the first quarter being reversed.

SSE is also tipped to post a good first half, buoyed by rising wholesale electricity prices, its investment in renewable energy and cost controls.

Glass maker Pilkington told the market last month that half yearly profits would be flat on last year, and analysts are not expecting this to change.

Rising energy costs and the strong pound have hit the business, which is one of the world's largest glass makers. Investors will be looking at its efforts to restore fortunes through cost reduction measures.

The company has pledged tight control of capital and a drive to reduce costs in order to deliver a strong cash performance.

Fund manager Gerrard has pencilled in interim pre-tax profits of £81m for Wednesday, against £80m last time.

Strong demand for sweeteners from American diet drinks manufacturers and lower raw materials costs recently led Tate & Lyle to replace forecasts of a decline with hopes for a modest improvement.

The sugar producer later went on to say that exceptional growth by its Splenda Sucralose sweetening product contributed to a rise in profits in the five months to August.

According to fund manager Gerrard, the group will report interim pre-tax profits of £120m on Thursday, up from £119m last time.

High oil prices represent the main negative point among an otherwise positive showing from Tate.