The Week Ahead: Battle for blue-chip status as Bunzl goes down

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This week will see FTSE review the make-up of the blue chip index and the battle for promotion to the top flight looks set to go down to the wire. However, one thing is for sure, Bunzl will almost definitely be demoted. Today, the group's Filtrona division, which makes cigarette filters, will be de-merged and listed as a separate entity leaving the rump of Bunzl with a market value too small to survive as a FTSE-100 company.

This week will see FTSE review the make-up of the blue chip index and the battle for promotion to the top flight looks set to go down to the wire. However, one thing is for sure, Bunzl will almost definitely be demoted. Today, the group's Filtrona division, which makes cigarette filters, will be de-merged and listed as a separate entity leaving the rump of Bunzl with a market value too small to survive as a FTSE-100 company.

In pole position to take its place is plasterboard-maker BPB and close by is Hammerson, the commercial property giant. Also in the relegation zone are Corus and bookmaker William Hill. These days a company needs a market capitalisation of around £2.5bn to win promotion to the FTSE-100. The latest round of quarterly changes will be announced by index compiler FTSE, a joint venture between the Stock Exchange and the Financial Times, on Wednesday and will take effect on Monday 20 June.

TODAY: Results: Full year - Acal Hyder Consulting; IFX Group, Interims - None.

TOMORROW: Annual results from Carphone Warehouse look set to make pleasant reading for shareholders of the mobile phone retailer to fixed line telecom carrier. Pre-tax profits are forecast to jump to over £100m from £76m last time around. Carphone's recent trading statement indicated that the group continues to perform well against the background of intense competition.

Going forward, the company should enjoy a boost from the amazing speed at which mobile phone technology is developing. Not only is 3G technology now being rolled out by all mobile networks in Europe but handset manufacturers are competing aggressively among themselves for market share which is resulting in a huge number of new handsets coming on to the market. This is great news for retailers like Carphone, especially as the company is increasingly viewed as a source of impartial advice on the best mobile phone deals by consumers.

Dresdner Kleinwort Wasserstein expects Severn Trent shares to lose ground in the wake of its full-year figures. They have gained 10 per cent over the past three months - a rather impressive performance for a utility like Severn Trent - but the German broker fears the results could disappoint. Overall, it forecasts the group to deliver a 4 per cent drop in pre-goodwill profits to £261m and warns those hoping for news of a more generous dividend policy or a restructuring of the company that neither scenario is likely.

Last week, dealing rooms were alight with rumours of consolidation in the logistics industry. Christian Salvesen, which is among the smaller players in the market, is without doubt a possible target for a larger predator. In fact, over the past five years it has received a number of takeover approaches, which to the detriment of its shareholders were turned down. Since 2000, Christian Salvesen's profitability has fast evaporated and investors are hoping that the company's full-year figures can show an improvement on the meagre £4.5m achieved in 2004.

Results: Full year - Belhaven Group; Carphone Warehouse; Chapelthorpe; Christian Salvesen; Belling Group; Hampson Industries; Intelek; Patientline; Protherics; Kewill Systems; RPC Group; Severn Trent; Victrex; Wagon; Walker Crips. Interims - London Scottish Bank.

WEDNESDAY: Wincanton, another logistics industry operator, was also last week talked of as a takeover target. If you believe the talk, Holland's TPG is eyeing the group whose shares have not yet fully recovered from a major contract loss earlier this year. Wincanton is also due to post annual results with analysts predicting it to boast of a 16 per cent rise in pre-tax profits to £35m.

Results: Full year - First Property; Marchpole; Northumbrian Water; Oasis Healthcare; Wincanton. Interims - Gooch & Housego; RWS Holdings.

THURSDAY: Halfords will unveil maiden full-year results which are expected to see the car parts to bicycle store reveal a £77m profit before tax. Analysts will be keen to hear how current trading is going at Halfords with most hoping that the company will be able to underline its credentials as a retailer with defensive earnings.

Elsewhere, FKI's cash performance will be carefully looked at by analysts when the engineer posts its annual figures. The group has a hefty debt burden which the City wants to see reduced. FKI's cause has not been helped by the weakness of the dollar over the past 12 months nor by soaring raw material prices. Williams de Broe forecasts the company to deliver a pre-tax profit of £70m, up from £67m last time.

Results: Full year - Alba; Charles Stanley; European Colour; FKI; Halfords; Intechnology; VP. Interims - Deltron Electronics; Dewhurst.

FRIDAY: Results: Full year - Telecom Plus: Fuller Smith & Turner. Interims - Signet.

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