But in the short term, the interest in LAL's shares lies in the result of ongoing negotiations regarding the future of the two-thirds stake in the company held by the newly merged Lloyds TSB group.Whether the parent chooses to buy out the minority at a premium, or simply eliminates overlaps with the former TSB bancassurance operations, the result should be good for LAL. There was a 77 per cent rise in regular contribution Peps.The biggest surprise in LAL's figures for the six months to June was provided by Lloyds Bank Insurance Services, which provided an unexpected 33 per cent jump in profits as policies to back unsecured loans boomed.Lloyds Abbey Life is plainly enjoying a long overdue uptick in trading, and longer-term saving trends are acting in its favour. If you believe that argument then better-than-expected figures from Lloyds Abbey Life yesterday presented a worrying augury. A 28 per cent jump in pre-tax profits to pounds 259.2m (compared with expectations of, at most, about pounds 235m) was driven by sales in the core Abbey Life and Black Horse Financial Services arms of pooled investments and savings plans. Sales of unit trusts jumped in the first six months from pounds 139m to pounds 312m, almost as much as the group sold in the whole of last year.

Panmure Gordon has upgraded its full-year forecast from pounds 685m to pounds 692m, putting the shares on a forward rating of 24. That is a pretty fancy rating for a company whose earnings are expected to grow at only about 13 per cent for both of the next two years, but selling Reuters has never been a sensible option.. There are few better signs of the top of a bull market than surging unit trust and PEP sales - as market cynics like to point out, when the private investor gets round to investing heavily in the stock market it is normally a clear signal to the professional to pull out for a while. This was due to more in-house product development but also higher litigation expenses which the company declined to explain.Even after its investment in Reuters 3000, the company is still investing heavily. The next 18 months are set to be one of increased capital investment, coming on top of the pounds 143m spent in the first half. The half- year contribution from the Americas was hit by slower revenue growth, though the company continues to invest heavily there.

Revenues from media products were also affected by the reduction in the stake in London News Radio whose figures are no longer consolidated in Reuters accounts The other worry is the 31 per cent rise in central costs. When Reuters conducted its last share buy-back - pounds 350m in 1993 - institutions received a tax credit.There were only a handful of disappointments in the figures. The screen-based system, designed to steal a march on competitors such as Bloomberg, offers a wealth of in- depth analysis to professional users. It is also priced around 5 per cent higher than its predecessor, Reuters 2000.The other issue that should be settled is the fate of the company's pounds 800m cash pile which is set to grow to around pounds 1bn by the end of the year. A share buy-back or special dividend is anticipated by the end of the year, though it is thought the company is ironing out a few tax wrinkles for institutional shareholders. The interim figures were particularly impressive given the company's investment in its new generation of information and dealings systems, Reuters 3000, launched earlier this month. Pre-tax profits rose 19 per cent to pounds 342m in the six months to June on sales up 11 per cent.

A slowdown in growth in the second quarter was partly due to the consolidation in the banking and fund management markets which has hit new installations. But the theory is that, once the consolidation settles down, the stronger banks will use more Reuters' products. The big event of the year is Reuters 3000, which the company has spent three years and pounds 70m developing. Investors who bought Reuters' shares five years ago have almost quadrupled their money even if the price has slipped in recent months. The shares fell 25p to 703p yesterday but that was due more to market jitters than any concerns about the company's numbers. Mr Souter expressed doubts about buying many more British bus companies as he felt prices were too high.. Reuters presentations may be about as much fun as an undertakers' convention, surprising for a company supposedly in the communications business, but there is no faulting the company's performance. Swedish analysts have valued the company at SKr1bn-SKr1.5bn (pounds 100m-pounds 150m).