Companies reporting next week

INVESTORS will be anxious to hear the initial response of water utility group

Kelda's Yorkshire Water business will be able to raise bills by around 18% to £288 a year by 2009-10.

Kelda's results are expected to show a marginal improvement, with the strong performance of Yorkshire Water slightly offset by the negative impact of the weak dollar on US water division Aquarion. Broker Charles Stanley is expecting pre-tax profits to come in at £107m, up from £100m last year.

Water and waste utility group Pennon is unlikely to provide a detailed response to the outcome of the price review when it reveals its half-year results on Thursday.

Ofwat told Pennon that its South West Water subsidiary can raise household bills by 25% over five years, meaning its customers will pay an average £444 a year by 2009-10 for their waste and water services - more than anywhere else in the UK.

Pennon is expected to announce pre-tax profits of £45m for the six months to September 30, up slightly on the £44m of a year ago.

Profits from Viridor Waste Management, which runs 21 landfill sites, recycling facilities and more than 70 waste processing sites UK-wide, should be well ahead of last year and will have been boosted by the £28.4m acquisition of Thames Waste Management.

Bus and rail group Stagecoach said in October that trading was in line with expectations after a good performance by all four divisions.

However, figures are expected to be distorted by a series of disposals, leading fund manager Gerrard to predict half-yearly pre-tax profits of £55m on Wednesday, down from £64.4m last time.

Bus profits are expected to show good growth, lifted by good demand in London, fare increases and cost controls, which have helped offset higher fuel costs.

A strong performance is expected from South West Trains, although the outlook for the Virgin Rail joint venture is uncertain as the business is still running under one-year contracts. The outlook for Virgin will be one of the main issues concerning investors.

Expectations for the first-half results of packaging and office products group DS Smith were scaled back following a downbeat trading statement in the autumn and profits of £26m are now expected on Wednesday against £32m last year.

Its plastics and packaging businesses have suffered from higher raw material costs and with margins down to the levels of 2000, investors may look for an update on the Linpac acquisition to improve sentiment.

According to brokers Charles Stanley, shares in DS Smith may find support from bid speculation that has been rekindled in the wake of confirmation that Kappa - the market leader in container and corrugated board - is being sold by owners Cinven and CVC.

Bidders who lose out in the race for Kappa may turn their attention to London-based DS Smith instead.

On Thursday, the pub operators' reporting season continues with interim results from brewer and pub owner Greene King.

Shareholders will interested to hear whether management is still keen to make acquisitions, given the proposed smoking ban in England and Wales. Other major pub operators have expressed caution over expansion due to uncertainty over the Bill.

The group, whose managed house division features the Hungry Horse and Old English Inns chains, said in its last update that summer sales rose in line with hopes. Analysts expect pre-tax profits of between £42m and £43.2m, up from £38.6m last year.

Developer Berkeley is likely to show the effects of a soft London market when it unveils its half-year results on Thursday, with pre-tax profits of £110m expected for the six months to September 30 compared with £118m a year ago.

According to fund manager Gerrard, the uncertain trading environment in Berkeley's key regions of London and the South East is overshadowing the promise to return more than £1.4bn to shareholders over six years.