The Business Matrix: Monday 28 February 2011

HSBC

HSBC is the last of the UK’s big banks to post figures and its results and annual report on Monday will be combed for details on how much it will pay out to investment bankers and top bosses. The bank, which did not need a taxpayer bailout, is set to report a sharp rise in profits to $20.6bn ($12.8bn) in 2010, up from $7.1bn in 2009.

Taylor Wimpey

Taylor Wimpey is forecast to post underlying profits of £51.2m in 2010 on Thursday, compared to £96m losses the previous year, as it cuts costs in the UK and sees strong sales in the US. Taylor, which trades as Bryant Homes, Laing Homes and George Wimpey, returned to profit at the half year as it focused on margins rather than sales and built fewer flats.

ITV

ITV is expected to reveal on Wednesday that profits more than doubled in 2010 to about £298m after it benefited from a revival in the advertising market. A strong programme line-up helped the broadcasting giant’s final quarter, including the finals of The X Factor and Downton Abbey, while advertising also got a first-half boost from the World Cup.

Admiral

Admiral’s growing share of the car insurance market should help it to unveil an increase in earnings on Wednesday. Annual profits at Admiral, which owns Diamond and elephant. co.uk, are expected to be up 20 per cent at £259m. It is also expected to give an update on its price comparison website Confused.com, which lost its spot as market leader in the first half.

Persimmon

Persimmon is expected to unveil a £7m rise in full-year profits to £88m on Tuesday. The housebuilder, which announced the end of a two-year dividend drought in August when it reported better trading in the first half of 2010, has doubled its margin to 8 per cent over the past year, helped by building more family sized homes and fewer apartments.

Aviva

Aviva is expected to post profits of up to £2.4bn for 2010 on the back of strong recent sales growth when the insurance giant reports on Wednesday. The City will also be watching for news on its cost cutting plans. Aviva has earmarked £200m of efficiency savings and £200m of cost savings by the end of 2012, of which half are set to come from the UK.

Supergroup seeks flagship store

Supergroup, the owner of the trendy Superdry fashion brand, has ratcheted up its efforts to find a flagship store in London’s West End, as it seeks to reinforce its credentials as a global player in the retail market. The fast-growing group, which floated in March 2010, has recently enquired about two sites on the capital’s Oxford Street and Regent Street, but deals have not materialised.

Sainsbury’s targets Fairtrade growth

Sainsbury’s has vowed to almost double its sales of Fairtrade goods over the next four years, starting with a goal to sell a record number of bananas over Fairtrade Fortnight, which starts today. The UK’s third-largest grocer made total Fairtrade sales, across 800 products including coffee and sugar, of £276m in the year to February 2011. It has now revealed plans to increase this to £500m by 2015.

Wave power device completed

Ocean Power Technologies will announce today the completion of its largest device for generating electricity from waves. The steel structure brought the commercialisation of wave power a step closer, the company said. The device will be ready for testing 33 nautical miles off the coast of Invergordon in Scotland as soon as weather conditions are suitable.

‘Serious doubts’ on Enterprise Zones

The Government’s plan for Enterprise Zones to boost local economies is expensive and unlikely to stimulate sustained growth in depressed areas, the Work Foundation will say today. Details of the scheme to offer tax breaks and localised incentives to stimulate investment are expected to be outlined in the Budget next month. But the think-tank’s analysis of past efforts estimates a cost of £50,000 per job created.

Williams F1 racing shares in demand

Williams Grand Prix Holdings, which runs the racing team, yesterday finished bookbuilding ahead of its listing on the Frankfurt Stock Exchange on Wednesday. The company said the book was fully covered and narrowed the price to between €25 and €26, the middle of the range, valuing it at about €260m.

Uncertainty holds back home buyers

The price of a new home fell on average 1.9 per cent in January over the previous month, to £215,786, according to an index drawn up by SmartNewHomes website. Concerns over the state of the economy, job security and the prospect of a rise in interest rates have all served to drag on prices.

Glencore ‘in talks’ with China fund

The commodities and resources giant Glencore has reportedly held talks with two sovereign wealth funds, China Investment Corporation and Qatar Investment Authority, as it prepares for a $60bn listing in London. The company could come to market as early as the middle of April.

Discounters cost Britain £20bn

High street shops that heavily discounted during the downturn to keep consumers coming through the doors, may have caused a £20bn slump in profits by changing buying habits and expectations, according to new research from KPMG, which added firms are in a price trap.