City File: MFI

THE CITY is hoping for an upbeat statement from MFI when it reveals its full-year results tomorrow. But it looks like the retailer is going to disappoint, despite expected pre-tax profits of about pounds 42m.

The trouble is in the high- margin kitchens business. Tony Shiret, at BZW, believes these margins are under threat as a price war is beckoning in the crowded market. Most analysts predict profits of more than pounds 60m for the current year, but BZW's forecast is pounds 52m. This would mean the shares, at 128p, trade at more than 20 times earnings. Sell.