City File: Thorn EMI

THE campaign for cheaper CDs has yet to hit the profits of Thorn EMI, whose lobbying abilities are well honed thanks to its involvement in the defence industry. Tuesday's results should show music sales growing, though the doubts about last year's purchase of Virgin music still linger.

Everyone is relieved Thorn EMI has sold Thames Television - except shareholders in Pearson - and with Smith New Court predicting underlying profits of pounds 335m, before FRS 3 adjustments, the shares look cheap at Friday's closing price of 734p.