Carburton Street, London – There's something for everyone in next week's busy itinerary. A whole host of companies step forward with their latest figures and these include some well-known names from the cigarette, retail, utility, telecom, media, biotechnology and drinks industries. There are also some keys economic numbers in the form of consumer confidence figures on Friday but the main event of the week will be the Chancellor of the Exchequer's pre-budget statement on Tuesday.
Gordon Brown is widely expected to raise money to pay for the war in Afghanistan, which could mean higher taxes for all of us. Furthermore, since the Chancellor's last budget the economy has slowed significantly. This will have punched a hole in his earlier forecasts which relied on robust economic growth. The Chancellor has indicated that income taxes will not be raised but this still leaves the question of National Insurance, which although not officially classified as a tax, is nevertheless, less money in our pockets should he decide to go down this route. Apart from income tax, the Chancellor still has the option to hike indirect taxes, which could mean higher prices for petrol, drinks and cigarettes.
The recent turmoil in the stock market has seen investors rotate into so-called defensive stocks, which include the cigarette companies. Imperial Tobacco (LSE: IMT), which has interim numbers on Monday, has been one of those companies that have seen its shares rise, by over 30% since January, following renewed interest from investors. In mid-September, Imperial Tobacco said the measures taken by the UK Government to combat smuggling had stemmed the slowdown in the British cigarette market. But it is feared that the duty free sales could be affected as fewer travellers take to the air after the terrorist attack on America.
Cambridge Antibody Technology (LSE: CAT) is recognised as one of the leaders in the use of antibodies in functional genomics for the analysis of disease proteins. The biotechnology company is also involved in the use of human monoclonal antibodies as potential therapeutic drugs. The main strengths of CAT lies in its intellectual property but its lofty valuation regularly attracts the attention of analysts keen to take a sideways swipe at the company. CAT has numbers for the market on Monday.
Kingston Communications (LSE: KCM) is expected to report widening second quarter losses at the bottom line on Tuesday as it continues to build out its business network infrastructure. There could be some pleasant news with respect to operating profits as revenues continue to grow and margins increase. The company should also start to reap the benefits from its completed networks, which would allow it to move some of its operations from leased lines over to its own networks.
Granada (LSE: GAA) has a half-time story to tell on Wednesday. The market has already factored in disappointing news with regards to advertising revenues. The downturn in the economy has taken its toll on a number of companies that rely on advertising as a source of turnover and Granada is no exception. In October, Granada updated the market on the performance at its ITV Digital operation, which is co-owned by Carlton Communications (LSE: CCM). The company said that the name change, from ONDigital to this more recognisable brand, has changed the fortunes at the digital broadcaster, which has seen rising subscriber numbers and rising revenues.
Great Universal Stores (LSE: GUS) has interim numbers on Thursday. The retailer updated the market in October and warned that its Experian operation in the US had been adversely affected by the events of 11 September. GUS also said that its upmarket clothing business, Burberry, was also suffering the effects of the terrorist attacks. This notwithstanding, Burberry's sales in Japan and Spain are expected to hold up reasonably well. The market will be keen to hear if the events of 11 September will delay the partial floatation of Burberry.
There are also numbers during the week from Airtours (LSE: AIR), De La Rue (LSE: DLR), SSL International (LSE: SSL), Harvey Nichols (LSE: HVY), Iceland Group (LSE: ICE), Innogy (LSE: IOG), Johnson Matthey (LSE: JMAT), Greene King (LSE: GNK) and United Utilities (LSE: UU.).
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