Reuters heads for widened losses

Reuters is expected to reveal widened losses in its final results next Tuesday.

The company is predicted to reveal a £960 million loss, compared with £886m last time.

Reuters has been hit by lay-offs from large investment banks, which are its key clients.

Fourth quarter revenues at Instinet, in which Reuters maintains an 83% share are expected to have fallen by over 15% as it struggles in the face of increasing competition.

Revenues are expected to have grown by 7%, fuelled by acquisitions.

David Baldry, of Gerrard Stockbrokers said: "Looking ahead, the company's outlook for the year is likely to be cautious in light of the recent tough trading conditions.

"We believe that the market has prepared itself for much of this bad news and analysts will instead be looking further out to forecasting 2003 results."

Analysts are also hoping for further details of plans for cost-cutting.