Compass to serve up Christmas cheer for investors as profits surge

With around 15 shopping days until Christmas, the flow of company results from blue chips seems to be dwindling. This week, there are precious few figures from Footsie stocks, but a handful of second liners will no doubt keep investors - and the market - busy.

Compass Group, the world's largest contract caterer, is one of the high- points in the week. The food services company reports full-year figures tomorrow, expected to be around the pounds 137m mark, up from pounds 114.3m last year. Analysts are anticipating an impressive 17 per cent growth in earnings per share. But questions over future growth are certain. The company spent pounds 227m on SHRM, the fourth-biggest contract caterer in France, back in June, so the real test now is whether Compass can reward its shareholders without similar acquisitions over the next couple of years.

Shares in Compass have lagged the rest of the market in recent months, although an analysts' trip to the States in October began to revive them.

Hot on the heals of Compass comes another leisure company, Airtours. The travel operator unveils its full-year figures on Wednesday. Analysts are looking for pre-tax profits of pounds 110m to pounds 122m, against pounds 86.8m last time round.

Despite excellent trading during the summer, which will have boosted UK tour operating profits, Airtours could find itself flying into turbulence in the coming months. The big uncertainty is the outcome of a Monopolies and Mergers Commission report into anti-competitive behaviour by travel companies. Margaret Beckett, President of the Board of Trade, is to pronounce in the first quarter of next year, and given the reputation she has acquired since Labour came to power, and her nickname of "Mrs Block-it", tour operators can't afford to be too complacent. That said, given the low cost of holidays offered by the likes of Airtours, Mrs Beckett is unlikely to believe consumers are getting a raw deal. Instead, she will probably recommend the distinction between tour operators and travel agents is clarified, a move which is not expected to hit profitability.

The other point of interest is when, or if, Carnival Corporation, the US cruise operator, will bid. Carnival owns a 30 per cent stake in Airtours, and speculation about its intentions has boosted Airtour's share-price rise in recent times.

Christmas spirits are flowing once again this week, with a number of the smaller brewers reporting figures. Marston, Thompson & Evershed is first off the block, releasing interims today in the region of pounds 16m, compared with pounds 14.7m last year. Market uncertainties about the acquisition of the Pitcher & Piano chain continue to haunt the group, which has underperformed the market by 5 per cent over the last six months. Marston experts predict the roll-out of the up-market bars will have fallen behind schedule.

Full-year figures from Vaux Group are out tomorrow. Pre-tax profits range between pounds 37m and pounds 39m, up from pounds 34.9m last year. The Swallow hotels division is expected to steal the limelight once again, with profits likely to have risen 17 per cent.

Analysts are braced for a disappointing performance from tenanted pubs, but will take solace from a strong contribution at the managed outlets. A profits warning recently from Greenalls, which pointed to muted beer sales over the summer, will also overshadow Vaux. News of a succession strategy once Sir Paul Nicholson retires as chairman would cheer investors.

Allders, one of the few retailers reporting this week, is gearing up for full-year profits of around pounds 19 to 22m, against pounds 11m last year. A strong second half, boosted by windfall spending, will help the department stores operator. However, analysts suspect that the "Diana effect" and the weather may have made September more difficult, while tentative evidence of a slow-down in spending from building society windfall gains may also throw up problems.

There is also likely to be an update on how Allders intends to improve performance at some of its new stores. The group snapped up seven Maples stores in September. More important, though, will be news of Allders' future expansion plans. Those in the know are speculating that Allders will set up a flagship store in central London. It already operates department stores in Croydon, the South-East and the Midlands.

Kingfisher releases its third-quarter trading statement this week. Kingfisher aficionados are looking out for a reasonably upbeat performance from the DIY subsidiary, B&Q, and steady progress at Superdrug and Comet. Figures from Kingfisher's Woolworths chain will be scrutinised for any indication of how Christmas sales are doing. But there is likely to be bad news from Darty, the French electrical retailer wholly owned by Kingfisher.

Among others reporting towards the end of this week is Shield Diagnostics, the biotechnology company. It is rumoured that Shield may use its interim results presentation on Thursday to announce a commercialisation deal for its test for heart disease.

LucasVarity is likely to turn in profits for the three months to the end of October of around pounds 85.6m.