Sales of festive pies ensure Greggs profits won't be mince

The group shrugged off adverse pre-Christmas weather to record a 1.1 per cent rise in comparable sales in the four weeks to Boxing Day, taking analysts by surprise.

Greggs, which has about 1,400 stores across the UK, including 170 or so north of the Border, sold more than a million mince pies a week during Christmas, helping lift end-of year trade. Sales across the year as a whole increased by 0.8 per cent.

The firm, headed by Scots-born chief executive Ken McMeikan, emerged as one of the survivors of the retail bloodbath in the recession and is planning further store expansion to capitalise on growing popularity for its value for money proposition.

It outlined plans in October for another 600 shops in parts of the UK where it is currently under-represented.

This expansion should drive robust sales over the next few years, with like-for-like growth also remaining stable, at around 1.5 per cent in 2010, according to Shore Capital expert Clive Black.

In terms of last year's performance, the consensus forecast is for a marginal lift in pre-tax profits to 46.5 million against 45.2m in 2008 after the group put in a resilient performance against recessionary pressures.

Royal Dutch Shell chief executive Peter Voser is set to face a tough challenge tomorrow 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 Voser has increased due to the improvement at rival BP, where Tony Hayward is leading a resurgence after years in the doldrums.

Panmure Gordon analyst Peter Hitchens said: "If you look at the way Shell is positioned, it is really losing ground. BP and Exxon are moving ahead."

Security group G4S fuelled expectations for its annual results this week after the firm reported a 12 per cent hike in earnings for the first nine months of 2009.

The company, which provides services ranging from cash transportation to facilities management, has been buoyed by contracts from government and new markets.

This has helped offset tougher conditions for commercial security services amid the recession. Revenues to the end of September were ahead 9 per cent at constant exchange rates, while margins improved by 0.2 per cent.

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, plus the first contract to monitor offenders in Northern Ireland.

G4S – formerly Group 4 Securicor – said it was confident of delivering a strong performance in 2009 and 2010.

Analysts at Panmure Gordon are expecting figures to reveal a 14 per cent hike in underlying pre-tax profits, to 380m from 332m in 2008.

They also said there was hope for its more "cyclical" commercial business stream, after positive signs from sector rival Securitas.

Fashion retailer French Connection is expected to report back on a six-month overhaul of the business when it unveils annual results on Wednesday.

Numis Securities tags a "hold" rating on the group due to it being "an option for recovery".

Still on the fashion front, January's cold snap is likely to have put sales growth at department store chain Debenhams into reverse when it posts its pre-close update on first-half trading.

Meanwhile, Dundee-based medical testing kits specialist Axis-Shield and Borders-based drugs developer ProStrakan are set to unveil their annual results to the City.