Orange deal will dominate results The Week Ahead

THE reporting season continues apace this week with results froma clutch of FTSE-100 groups ranging from telecoms to supermarkets.

The release of full-year results by Vodafone AirTouch today willbe dominated by talk of the sale of Orange, with officialconfirmation of a deal with France Telecom expected.

Attention will also focus on its plans for the rest of theMannesmann business acquired earlier this year, in particular theGerman company's fixed-line business.

The inclusion of Mannesmann in the year-end figures, includingthose parts due to be sold off, means the pre-tax profits figures,expected to be around GBP 2.16 billion, will be a one-off withlittle significance in their own right.

The Media group, Emap, is expected to report a healthy rise inyear-end figures today, despite a warning earlier this year offalling advertising revenues in its US business, where it hasrecently launched the magazine FHM.

Pre-tax profits are forecast to come in at GBP 175 million, upfrom GBP 162 million last time.

The market will be scrutinising its results for evidence oftrends in magazine advertising revenues for any signs of competitionfrom the internet.

The decision by Anglian Water to freeze its water charges to keepon the right side of the regulators means full-year profits, set tobe announced tomorrow are likely to be down on last year. Thestockbroker, Greig Middleton, is expecting pre-tax profits to bearound GBP 224 million, down from GBP 258 million.

The broker suggests dividend payments could be a centre forattention as the group made a special share issue to investors atthe half-year stage.

Sir Peter Davis, the man from the Pru who was appointed chiefexecutive at Sainsbury in March, will unveil the retailers' full-year results tomorrow.

Analysts are expecting a lower profit before tax figure of GBP570 million, down from GBP 756 million last year. The announcementshould also provide a snapshot of current trading at the batteredsupermarket business and hopefully some plans from Sir Peter forreorganisation at the group.

Full-year figures from the rail network operator Railtrack willbe released on Thursday and are expected to show turnover andprofits depressed because of regulatory price controls.

The stockbroker, Greig Middleton, is expecting profits before taxof around GBP 393 million, down from GBP 426 million.

But it said the market will be equally keen to hear Railtrack'sviews on future pricing controls and the regulatory review due to becompleted in September.

The first full-year results from Invensys, the engineering giantcreated by last year's merger of Siebe and BTR, will be released onWednesday and profits are expected to come in at just over GBP 1billion.

The significance of the figures will be hard to decipher in thewake of acquisitions and disposals at the group and the outlook fornew orders will be one focus of attention.

Investors will also be keen to hear how the planned GBP 300million in cost reductions are progressing.

On Thursday, AorTech investors will be awaiting eagerly a tradingupdate fromthe Bellshill-based heart valves manufacturer. Analystsare forecasting pre tax profits of only GBP 100,000, but expecting apositive update from the company, whose shares hit peaks of GBP10.67 in March from lows of 85.5p this time last year.