The Week Ahead: Ted Baker well placed to thrive in sunnier times

Fashion retailers suffered a dip in sales over the summer as the bad weather and interest rate rises combined to keep consumers away from the high street.

While Ted Baker is unlikely to shrug the trend and announce stellar interims on Thursday, its niche status means fortunes could rebound faster than its larger rivals, according to Seymour Pierce. The analyst said it expects to see a strong performance in its core retail division in the second half of the year.

The progress of Ted Baker's expanding Asian business will be of interest to investors, as it is expected to deliver major profit growth in the medium term. The company signed territorial licensing agreements in 2005 with the Li & Fung group and RSH, with the intention of opening 50 stores within six years. The company is on track to achieve this target, and expects to see returns on the move in the near future.

Market observers estimate its pre-tax earnings could double to £8m in the next five years. Seymour Pierce forecasts pre-tax profits of £7.6m. However there are concerns elsewhere that the company's decision to shift focus from wholesale to retail could drive profits down closer to £7m.

TODAY: Results: Full year: Cap-XX, James Halstead.

TOMORROW: The supermarket giant Tesco is expected to display a confident outlook, despite potentially the weakest like-for-like first-half sales in the UK for years. The company is on the verge of breaking into the US market, and the move is expected to counter a slump in UK sales. The consolidation of the company's assets in China and strong performance in Europe, notably Ireland, Hungary and Poland, is expected to provide a further boost.

Citigroup analysts estimate pre-tax profits at around £1.2bn over revenue of £22bn, and have raised the target price per share to 500p from 450p.

There has been some nervousness about the findings of a Competition Commission investigation into the supermarket, but analysts seem to feel it unlikely that harsh measures will be taken. However there could be consequences following the recent condemnation of all the major supermarkets for pushing up the prices of dairy products. Tesco remains top of the UK food retail sector, with a top-line sales growth rate of 10 per cent, well above its nearest competitors, which are between 8 and 6 per cent.

Results: Full year: Sareum Holdings. First half: Tesco.

WEDNESDAY: Results: Full year: Shepherd Neame, Third quarter: Sandvine Corp.

THURSDAY: The software and consulting company First Derivatives is expected to exceed targets when it presents its results, according to analysts at Goodbody Stockbrokers. It set the target share price at 400p, and expects earnings per share to grow 26 per cent year-on-year to 9.2p.

The company, which acts as a technology service provider to the capital markets, has taken a bold stance and recently increased headcount by 17 per cent, from 93 to 109, in order to deal with the "renewal of many existing contracts and the securing of some new high-profile customers".

Interim pre-tax profit is estimated at around £1.58m, with revenue of £5.42m.

The company is also expected to provide an update on its property portfolio, an area in which expenditure is forecast to reach £3.6m.

Analysts are forecasting a mixed picture for the brewery and pub chain Marstons in its full-year results. Floods earlier in the year did serious damage to pubs owned by the company and the effect of lost business and repairs is expected to be up to 10 per cent of turnover.

The smoking ban has had both positive and negative effects: it has shown a decrease in trade in tenanted houses, but increased food sales in managed houses. Marstons has invested in outdoor smoking solutions in tenanted houses in order to combat this trend.

Profit before tax is expected at £101.7m.

Results: Full year: Marstons. First half: Ted Baker, Walker Greenbank, First Derivatives.

FRIDAY: The engineering consultancy Waterman Group is set to announce record full-year results with pre-tax profits reaching £5m, according to Evolution Securities.

The company's exposure to the City property market has dropped to 10 per cent of its revenues due to growth in its civil, urban regeneration and international revenues.

Waterman's strength to date has been in making beneficial acquisitions, the latest of which was that of the UK traffic consultant Boreham, which led to an earnings upgrade of 23 per cent. Evos put down a target price per share of 225p.

Results: Full year: Waterman Group.