Analysts incorrectly forecast profits for nearly half of FTSE 100 companies despite regulatory moves to encourage more balanced opinions among research departments, according to a new report.

Parson Consulting, the financial management consultancy that wrote the report, found that 49 of the FTSE 100 index of leading companies were 10% above or below their forecast year-end results from December 2003. Of these, most were below analysts' expectations. Thirty eight underperformed by more than 10% and 11 overperformed by more than 10%.