Press Association
Saturday 11th February 2012
Royal Dutch Shell chief executive Peter Voser faces a tough challenge on Tuesday when he presents the oil major's strategy update to a sceptical City.
The Anglo-Dutch firm has to convince analysts it has the plans in place to turn around years of sliding production, as well as strip costs out of the business. The pressure on Mr Voser - less than nine months into the job - has increased due to the improvement at rival BP, where Tony Hayward is leading a resurgence after years in the doldrums.
The 28 billion dollars (£19 billion) it plans to spend this year is in the same region as its far bigger rival Exxon and well ahead of BP. But there is a big gap between committing to spend the money and getting oil out of the ground.
Shell has also been slow out of the blocks on cost-savings as the industry reacts to lower demand. BP stripped out four billion dollars (£2.5 billion) last year, although Shell's savings amounted to just half of this figure.
Fashion retailer French Connection is expected to report back on a six month overhaul of the business when it unveils annual results on Wednesday.
The group, which announced a restructuring in September, has trimmed 50 head office jobs in London, New York and Hong Kong, while it has also pulled out of Northern Europe and Japan.
Amid hopes for a better Christmas season, analysts at Numis Securities are predicting full-year underlying losses of £13.3 million, up from £7.5 million a year earlier. The market consensus is for losses of £13.8 million. Numis has a hold rating on French Connection due to it being "an option for recovery", although much will depend on the keenly awaited update on French Connection's strategic revamp.
Security group G4S fuelled expectations for annual results on Tuesday after the firm reported a 12% hike in earnings for the first nine months of 2009. The firm, which provides services ranging from cash transportation to facilities management, has been buoyed by contracts from government and new markets.
Recent contract wins have included the running of two immigration detention centres for the UK Border Agency, at Brook House and Tinsley House near Gatwick. Other notable contracts include facilities management for the Olympic Delivery Authority and the Ministry of Defence, as well as the first contract to monitor offenders in Northern Ireland.
Analysts at Panmure Gordon are expecting figures to reveal a 14% hike in underlying pre-tax profits, to £380 million from £332 million in 2008. They also said there was hope for its more "cyclical" commercial business stream, after positive signs from sector rival Securitas.
