Peter Ranscombe: Smiths update eyed with interest as break-up rumoured

Shares in Smiths have risen by around one-fifth since May as investors eye potential corporate activity after a turnaround plan delivered progress.

The company has five divisions and employs 22,000 people in sectors as diverse as energy, security and medical services. Its detection equipment is used at airports worldwide, while the company's medical devices are found in ventilators and drips.

The portfolio also includes John Crane, which makes mechanical seals for oil and gas companies as well as industrial and chemicals manufacturers.

Analysts at UBS last month suggested a break-up was "starting to edge closer" thanks to turnaround efforts, while the recent foreign takeover of fellow British engineer Tomkins has fuelled speculation that Smiths could be next. However, not all market experts are convinced and HSBC said recently it saw no immediate catalyst for the group to be broken up.

Pawnbroker Albemarle & Bond is expected to turn in a strong set of full-year results tomorrow, reflecting high demand at its core business.

Driven by the financial crisis and economic uncertainty, the cost of gold has hit a record high at about $1,300 an ounce and led many cash-strapped consumers to trade in old jewellery and take advantage of higher prices.

The firm is opening a swathe of stores under its Cheque and Pawn and Herbert Brown brands to capitalise, with a further 25 shops due in the current financial year to add to the 15 stores in the year to 30 June.

Consensus forecasts for full-year pre-tax profits are at 19.8 million, up from 14.6m last year, on sales of 76.3m, up from 55.5m.The turnaround efforts of retailers JJB Sports, Moss Bros and Game will be in the spotlight this week during another busy few days for the sector.

Sports retailer JJB Sports is expected to reveal a World Cup boost in its interim results tomorrow, after a torrid few years for the business.

The group has seen a steady improvement in sales after a management and strategy overhaul, having staved off administration last year by agreeing a rescue deal with its landlords.

Video games and consoles retailer Game Group will also deliver interims tomorrow, marking the first set of results from new chief executive Ian Shepherd after he joined in June to help revive its fortunes.

Game Group turned to the ex-Vodafone boss following the abrupt departure of former boss Lisa Morgan in April.

The arrival of Shepherd heralds the start of a concerted turnaround effort at the group, which has seen sales slide in the face of tough market conditions and fierce competition.

Menswear retailer Moss Bros will be questioned over the early performance of its new "bespoke" shop when it reports interim figures on Wednesday.

Moss Bespoke opened as a flagship store near London's Liverpool Street station in June, offering tailormade suits from 250 to 500.

It is tapping into a trend for young men wanting to smarten up, inspired by television presenters such as Dermot O'Leary and Ant and Dec, as well as a buoyant suit market amid workers and jobseekers.

Moss is planning further bespoke outlets in Manchester and Oxford, hinting that it could become a nationwide venture.