He said if extra spending was needed it would be through a mixture of sources though he

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He said if extra spending was needed it would be through a mixture of sources, though he declined to give details of the contracts with the two companies. "I want it to work, because we've put a lot of time and effort into the project. But there are still problems with the Revenue's software and hardware which have not been corrected. They claim that special software, which scrambles the data before sending it down a modem, was supplied with in-built errors.Andrew Bolton, from the Surrey-based Quality Management Software, praised the idea behind the project, but not the execution. Of the 3,000 firms of accountants and tax assessors, known in the trade as agents, which have applied to join the ELS network, only 160 have made it.Software companies, which have devised Revenue-approved computer programmes with the form on-screen, blame the Revenue and its partners for the mess. The Revenue has launched a review into the scheme - the Electronic Lodgement Service (ELS) - after admitting last week that 20 per cent of returns sent through the new computer link were being rejected by the equipment. Managers have also had to apologise to at least one accountancy practice after mistakenly sending out the wrong batch of security passwords.

Brian Handley, project manager, blamed the mistake on a clerical error "It was very unfortunate I personally apologised to the person concerned. We're trying to make sure it'll never happen again."When it launched ELS in April, the Revenue said it expected 500,000 tax returns to be sent electronically by the 31 January closing date for self- assessed forms The three-year-old project includes EDS, the computer giant responsible for many civil service networks, and defence to telecommunications group Racal.Yet almost four months after its launch, only 900 tax returns have been submitted, of which almost 200 have been inexplicably rejected, despite being correctly completed. The Inland Revenue is battling to salvage a multi-million pound project to computerise the new self-assessment tax return form after a series of delays and embarrassing technical problems. The main engines of growth have been a sharp fall in the underwriting loss and the benefits of the Provident Mutual deal.At Sedgewick, some brokers have been surprised that the group's US quote has had little effect on the share price which has been in the doldrums for some time. Weak premium rates remain a feature and profit forecasts are for a 7 per cent fall in profits to just under pounds 60m, though some forecasts are as high as pounds 66m.. That reflects the benefits of the Provident Mutual acquisition and a below- average exposure to the weaker currencies in Europe.Operating profits for the six months to June are forecast to be 29 per cent ahead of last year at pounds 250m. Underlying volume growth in gases is expected to have continued in single-digit figures aided by new plant brought on stream in the US.But though the underlying business in gases is strong it is thought that this will be overshadowed by currency movements.Also chipping in with third-quarter figures will be Hanson, the one-time giant conglomerate which announced a four-way split last year.The remaining Hanson business has streamlined itself down to four legs after the disposal of its electricals business.However some say the four legs may soon become three if, as some brokers say, potential suitors are asked to cast their acquisitive gaze across the Grove crane operation.Though figures are for the third quarter, the City's focus will be on the six-month trading period of the "new" Hanson which is reverting to a December year-end.High industry stock levels will hamper London Brick but Cornerstone, the US aggregates business should help the group to a six month operating figure of around pounds 121m and pounds 155m for the nine months.In insurance, both General Accident and Sedgewick are reporting interim figures this week.At GA, the results will look strong compared with other composites.

The market will be hoping for news on the disposal.The third-quarter figures are thought to be broadly flat compared with the same period last year.Pre-tax profits are expected to come in at pounds 112m an increase of just 2 per cent. Some brokers, including NatWest Securities are concerned that the group faces a challenging period as it invests heavily in the new digital era as the analogue business slows down.Analysts say that BSkyB's valuation depends entirely on the success of the digital launch in the spring of next year.Though it seems as though the media giant has a stranglehold on the ownership rights of the digital era, this could be weakened by the proliferation of distribution platforms around the world.BSkyB may have to gain more control over the distribution of its programming in cable to ensure that its vice-like grip is maintained.Some brokers are therefore advising that with a coming period of increased risk, the share price picture may remain fuzzy until the digital issues are resolved.Other companies reporting next week take in the insurance, industrial conglomerate and leisure sectors.Of the industrial groups, BOC is the largest due to report, though they are only third-quarter figures.The gases group, not normally one to make headlines, has been much in the news recently after it put its Ohmeda Healthcare business up for sale.The price tag is expected to be around pounds 1bn with Zeneca, Smiths Industries and a host of overseas companies all interested. The comparable figure last year was pounds 257m.This will please the City as the results will be presented against the backdrop of a poor year for the company.The share price has underperformed the market by a thumping 42 per cent since October 1996.The shares have collapsed from nearly 700p last November to just 473p in a period when the FTSE has soared to record levels.Though the shares have still outperformed the market by 14 per cent since the float, this still represents a torrid year for the media giant which has become used to sweeping all before it.While the results will show that the business has continued to grow, that growth has slowed substantially as the year progressed. The operating figure is expected to be around pounds 360m, which represents an impressive 18 per cent like for like increase year on year.The headline figure will be around pounds 305m though the broker forecasts range from a low of around pounds 290m to a high of pounds 312m. However, some industry analysts expect Mr Chisholm to be out of the company by September.The square-framed New Zealander, renowned for his no-nonsense management style, is credited with doing more than most to drive BSkyB from potentially fatal losses to a powerhouse. He would obviously love to go out on a high and it is understood the figures will be better than most City expectations.Though analysts are forecasting profits in the range of pounds 300-pounds 312m, it is understood the operating figures could be inflated by around pounds 13m.This is a result of the inclusion of part of the pounds 75m pre-payment for programmes provided to British Digital Broadcasting, the digital television consortium.BSkyB was forced to pull out of the consortium and was paid compensation. The results season starts to run into its summer barren season next week with only a handful of blue chip companies reporting.