The Week Ahead by Michael Jivkov

Hanson, Aggregate and RMC eyed in build-up to Christmas

As the City winds down ahead of the Christmas holidays one is more likely to find the venue and time of various seasonal parties in an investment banker's diary for this week than upcoming corporate news. There will, however, be a few unlucky souls who will be at their desks running stock valuation models through their computers. Those covering the heavy building materials sectors will be among the busiest as Hanson, Aggregate Industries and RMC give trading updates.

Hanson is expected to report a solid performance. Good weather in the fourth quarter, which is all important for the construction industry, will be important as will falling transport costs helped by the declining oil price. However, the group's dependence on Texas in the US, where demand is patchy, and the difficulties it is having in selling its European bricks businesses are among the factors that may temper sentiments going forward.

RMC is more of a mixed bag and has the potential to disappoint. The market has heard little from the group since interim figures at the start of September. RMC's operations in Germany are expected to be a drag on the company's performance, with most expecting them to produce little in the way of profit. At the interim stage they took their toll on the group's overall performance with management warning investors not to expect any improvement in the second half of the year. The mild weather on both sides of the Atlantic in November bodes well for a strong finish to what has been a good year at Aggregate Industries. Unlike RMC, the group is not really exposed to a weak continental European market as it has its focus mainly in the US and UK.

TODAY: The software group Misys will release a trading statement at about midday relating to the firm's first six months. In light of last week's disappointing announcements from peers Logical and Cap Gemini there is concern Misys may warn on profits. At its AGM in October the group's outlook statement was slightly better than investors had expected with management indicating trading was progressing in line with previous guidance. However, at the time there were suggestions the group was seeing large orders taking longer to close at its Banking & Securities Division and that has prompted some fear among analysts that the current economic uncertainty could cause further delays in order closure.

Shell will make its annual strategy presentation in London amid some concerns it may not be up to much. At its interim results presentation in August the oil sector giant hinted that volume targets were vulnerable and in September it cut its oil production growth targets. Analysts will also be listening carefully for an update on cost cuts as the group's three-year restructuring programme draws to a close. Recently some City professionals have been pointing out that savings are becoming increasingly difficult. According to sector analysts at HSBC Securities a further $1bn will prove extremely challenging with $500m a more reasonable expectation. Broker Dresdner Kleinwort Wasserstein has targeted a figure closer to $750m.

Given what seem to be shrinking growth prospects at Shell, analysts and investors will be keen to see whether management are still intent on acquisitions. It has been suggested that the group may be interested in some of Enron's assets.

Full-year results from financial software developer Raft International are expected to see the group move into the red to the tune of £775,000 compared with a profit of £171,000 in the previous period. The major reasons for this are to be found in the postponement of a large deal together with increased marketing and development spending. Insurance, reinsurance and financial services firm Windsor is forecast to report a full-year profit of about £2.6m, little changed from the previous year. A dividend of 1.2p per share is expected.

Results: Full-year – Windsor; Raft International. Trading statements: Misys.

TOMORROW: There were positive sounds from Deutsche Bank last Friday ahead of Pearsons's trading statement. The broker advised its clients to buy into the stock, which it added to its prestigious "European Focus List". Deutsche reckons Pearsons's share price already discounts a large profit downgrade for 2002 and the possibility of a significant goodwill write-down for recent acquisitions. Even if its worst case scenario occurs – a profit downgrade of around £100m for next year and some £1.3bn of goodwill written off – the German brokerage still reckons the shares are undervalued.

Results: Interims – Airbath Group; Stewart & Wright. Trading statements – Pearsons; Aggregate Industries.

WEDNESDAY: Results: None. Trading statements – Hanson.

THURSDAY: Results: None. Trading statements – RMC.

FRIDAY: Results – Interims: Peel Holdings.