UK Manufacturing, Orders Up

Arthi Gupta
06 Sep, 2010
New York City

The UK indexes rose after manufacturing output and orders soared in the third quarter. The UK new car registrations fell in August. Renewable Energy agreed to sell German wind farms for

[R]3:00 PM London – The UK indexes rose after manufacturing output and orders soared in the third quarter. The UK new car registrations fell in August. Renewable Energy agreed to sell German wind farms for €39.8 million. Shire subsidiary commenced tender offer to buy Movetis.[/R]

In London, FTSE 100 Index traded higher 19.18 or 0.35% to 5,447.55 and the pound edged higher to close at $1.5374.

The UK manufacturing output and orders reached record high levels in the third quarter, driven largely by export markets, according to a survey carried out by EEF, the manufacturers'' organization and BDO LLP.

The Engineering Employers Federation said output and new order balances were 33% and 35% respectively, both record high levels since the survey began in 1995. The output and new order balances were 30% and 34%, respectively, in the June quarter. The figures are based on a quarterly survey conducted by the EEF and the accountancy services firm BDO LLP.

According to EEF, the UK economy will expand 1.5% and 2.1% in 2010 and 2011 respectively. At the same time, manufacturing is forecast to grow 3.7% in 2010 before easing back slightly to 3.2% in 2011.

The UK new car registrations fell 17.5% year-on-year to 55,300 in August, the Society of Motor Manufacturers and Traders said today.

Diesel-fueled cars rose to new highs of 52.6% in August, in part reflecting the drop in petrol-fueled car registrations. The Ford Fiesta was the best selling model in August.

The National Incident Commander Admiral Thad Allen said in a statement issued on Friday that BP plc successfully installed a fully functioning and tested Blow Out Preventer on the cemented Macondo 252 well.

He added that there was no observable release of hydrocarbons from the well head during the period of time between the removal of the damaged BOP and installation of the replacement BOP.

Shire plc announced the commencement of the tender offer by its subsidiary Shire Holdings Luxembourg S.à.r.l. to acquire all outstanding shares and warrants of Movetis NV.

The prospectus relating to the tender offer and the Movetis board memorandum recommending that shareholders accept the offer were approved by the Belgian regulator, the Commission bancaire, financière et des assurances on August 30, 2010.

Renewable Energy Holdings plc said its wholly owned subsidiary, REH Global Ltd. entered into a conditional agreement to dispose of its German wind farms for up to €39.8 million.

The German wind farms Windpark Kesfeld Heckhuscheid GmbH & Co KG and Windpark Kirf GmbH & Co KG, will be sold to Allianz Renewable Energy Management GmbH. The consideration comprises up to €37.8 million of initial consideration and up to €2.0 million of deferred consideration.

Renewable Energy expects €30.4 million of the initial consideration to be used to pay down existing debt of the subsidiary. It also intends the majority of the remaining proceeds of the disposal, after expenses, to be re-invested in its Kobylany wind farm project in Poland.

British Airways Chief Executive Willie Walsh said he has identified about twelve airlines as potential acquisition targets to lead a wave of consolidation in the industry.

Gainers & Losers

Craneware plc soared 4.21% to 404.35 pence after the provider of revenue integrity solutions for the U.S. healthcare market reported full year 2010 revenue grew 23.5% to $28.40 million from $23.0 million last year. Profit for the year rose 24.3% to $5.53 million or 21 cents per share compared to a profit of $4.45 million or 17 cents per share a year ago.

easyJet plc gained 1.28% to 381.20 pence after the airline carrier reported 0.5 percentage points rise in load factor for the month of August, while passengers traveled rose 8.4% from last year. Load factor for the month was 92.3%, compared to 91.8% last year. The company carried 5.20 million passengers, versus 4.80 million passengers in the prior year.

Fenner plc surged 4.27% to 219.70 pence after the manufacturer and distributor of conveyor belting and reinforced precision polymer products said it anticipates full-year results to be at the top end of its expectations for 2010. The company added that the final two trading months of its 2010 financial year have seen sustained momentum in its performance giving rise to a significant year-on-year increase in its underlying operating profit performance.

Goals Soccer Centres plc advanced 3.90% to 120.00 pence after the company engaged in the operation of outdoor soccer centers reported first-half sales gained 3% to £13.2 million from £12.9 million in the comparable period. Profit for the period declined 30.4% to £1.88 million or 3.8 pence per share versus profit of £2.70 million or 6.2 pence per share in the same period last year.

Hunting plc edged higher 0.16% to623.00 pence after the energy services provider completed the acquisition of Innova-Extel Acquisition Holdings Inc., a supplier of harsh environment electronics technology, in a deal worth $125 million.

Intellego Holdings plc slumped 14.89% to 0.200 pence after the e-learning, live training and consultancy services provider reported revenue for fiscal 2010 decreased 21% to £1.85 million from £2.34 million in the previous year. Net loss in the period widened 108% to £1.04 million or 0.58 pence per share compared to a net loss of £0.50 million or 0.40 pence per share last year.

Murgitroyd Group plc climbed 5.94% to 288.70 pence after the provider of a range of intellectual property advisory services announced its audited results for the year ended May 31, 2010. Revenue for the year rose 1.8% to £29.43 million from £28.9 million in the previous year. Profit for the year increased 31.7% to £2.7 million or 31.23 pence per share, compared to £2.05 million or 23.75 pence per share a year ago.

Pursuit Dynamics plc rose 5.83% to 285.75 pence after the energy efficient solutions provider announced an agreement with Germany''s brewer, Oettinger Brauerei GmbH, to install a new PDX brewing system at its Braunschweig brewery.

Staffline Group plc surged 32.50% to 132.50 pence after the company engaged in the provision of recruitment and outsourced human resource services to industry reported first-half revenue surged 70% to £83.36 million from £49.14 million in the comparable period. Profit pre tax and amortization soared 71% to £2.4 million from £1.4 million last year.

Straight plc increased 4.76% to 110.00 pence after the company that supplies container solutions for source separated waste stated first-half revenue decreased 23% to £13.19 million from £17.16 million in the comparable period. Profit for the period fell 11% to £609,000 or 5.2 pence per share compared to £684,000 or 5.9 pence per share a year earlier.