UK Indexes Up 2.8%; Burberry Sales Rise

Arthi Gupta, Mayank Mehta and Sanjay Barot
26 May, 2010
New York City

UK stocks rebound on the positive economic outlook and improving sentiment after a six-day sell-off. Brewin Dolphin Holdings PLC net profit in the first half surges 36%. Burberry Group plc rose 4.5% after sales in the latest fiscal year rise 8%.

[R]4:00 PM London, 11:00 AM New York – UK stocks rebound on the positive economic outlook and improving sentiment after a six-day sell-off. Brewin Dolphin Holdings PLC net profit in the first half surges 36%. Burberry Group plc rose 4.5% after sales in the latest fiscal year rise 8%.[/R]

UK benchmark index rebounded after investors shifted their focus to earnings, health of the banking system and economic data from Europe and U.S. UK home loans approvals increased in April and the OECD revised its economic outlook in the region higher.

In London FTSE 100 Index closed higher 144.20 or 2.92% to 5,084.88 and the pound edged higher to close at $1.440 and to close at €1.170.

Crude for July delivery rebounded $1.94 per barrel at $70.69 and gold gained $14.7 an ounce at $1,213.

The British Bankers'' Association on Wednesday said the number of loans approved for house purchases totaled 35,729 in April, up from 35,044 in March. The average value of house purchase approvals came in at £146,700 in April compared to £146,100 in March.

The Organization for Economic Cooperation and Development raised its global growth forecasts for this year and next as emerging economies such as China outpace debt- burdened developed countries to drive the global expansion.

In a report released today, the OECD said economic activity in region is picking up pace, although it said growth faces risk from the volatile sovereign debt markets and the overheating in emerging market economies.

The economy of the OECD''s 30 members will grow 2.7% this year, more than the 1.9% predicted in November, the Paris-based group said today in a report. Including non-members such as China, the global economy will expand 4.6% this year and 4.5% in 2011, compared with an average of 3.7% during the decade through 2006.

The organization upwardly revised its global growth estimate for 2010 to 2.7% from the previously estimated 1.9% growth. The 2011 growth was raised by two-tenths of a percentage point to 2.7%.

Gainers & Losers

Aveva Group Plc increased 3.4% to 1,080.00 pence. The provider of engineering data and design IT systems said fiscal year 2010 revenues fell 9.6% to £148.3 million from £164.0 million a year ago. Net profit for the year fell 21% to £33.4 million or 49.08 pence per diluted share compared to net profit of £42.2 million or 61.98 pence per share a year ago.

BP Plc, the oil and gas company fell 0.7% to 481.45 pence.

Brewin Dolphin Holdings PLC rose 2.0% to 130.60 pence after the investment management company said first half revenues rose 26% to £113 million from £89.6 million a year ago. Net profit for the first half rose 36% to £10.3 million compared to net profit of £7.57 million a year ago.

Burberry Group plc rose 4.5% to 640.50 pence after the luxury retailer said fiscal year 2010 sales rose 8% to £1.3 billion from £1.2 billion a year ago. Net profit for the year was £81.4 million or 18.4 pence per diluted share compared to net loss of £6.0 million or 1.4 pence per share a year ago.

Cable & Wireless plc rose 1.9% to 59.10 pence. The international telecommunications company said fiscal year 2010 sales were flat at £2.27 billion. Net profit for the year was £1.0 million or break even per diluted share compared to net loss of £32.0 million or 1.3 pence per share a year ago.

Chrysalis Group PLC traded unchanged at 101.00 pence after the independent music company said first half revenues rose 5% to £32.7 million from £31.2 million a year ago. Net loss for the first half was £532,000 or 0.79 pence per diluted share compared to net loss of £2.32 million or 3.45 pence per share a year ago.

Churchill Mining Plc, the mining company rose 4.9% to 100.00 pence.

Domino''s Pizza UK & IRL plc, the pizza delivery company rose 1.6% to 346.30 pence.

Hogg Robinson Group plc rose surged 10.0% to 30.25 pence. The international corporate travel services company said fiscal year 2010 revenues fell 7% to £326.8 million from £351.3 million a year ago. Net profit for the year rose 81% to £13.4 million or 4.3 pence per diluted share compared to net profit of £7.4 million or 2.4 pence per share a year ago.

Innovation Group Plc rose 4.7% to 11.00 pence after the software firm said first half revenues rose 2% to £76.9 million from £75.5 million a year ago. Net loss for the first half was £2.4 million or 0.29 pence per diluted share compared to net loss of £51,000 or 0.01 pence per share a year ago.

Rio Tinto plc, the metal and mineral producer rose 5.3% to 3,009.50 pence.

Shaftesbury PLC rose 3.0% to 365.70 pence. The real estate investment trust said first half revenues fell 3.5% to £35.6 million from £36.9 million a year ago. Net profit for the first half was £122.7 or 53.7 pence per diluted share compared to net loss of £159.9 million or 92.0 pence per share a year ago.

Sportingbet Plc increased 3.3% to 62.25 pence after the provider of sports-betting services said third quarter revenues rose 29.8% to £55.7 million from £42.9 million a year ago. Net profit for the quarter fell 8.5% to £7.5 million or 1.4 pence per diluted share compared to net profit of £8.2 million or 1.5 pence per share a year ago.

William Hill PLC, the betting and gaming company increased 1.5% to 172.70 pence.