Doom and gloom expected for Matalan

Matalan is expected to release a grim update this week, reporting slow retail trading and the as yet unfilled position left by chief executive John King. Analysts expect the discount retailer to reveal a profits drop to around £55 million from £80.9 million in the past year ended 25 February. In March the group said like-for-like sales dropped 7.4 percent in the second half of the year ended 25 February. With the recent spate of bad weather, analysts are concerned that sales have been further affected.

There has been speculation that founding chairman John Hargreaves, who owns 53 percent of the company, is prepared to sell the business for a good price and that private equity groups have shown interest. Other shareholders include Harris Associates, a Chicago-based investment group, with more than 7 percent and Fidelity. Other British businesses expected to release updates this week include JD Sports, who are expected to announce a rise in profits.