UK Construction Rebounds; BBA Aviation Plummets, ITV Surges

Arthi Gupta
02 Mar, 2011
New York City

The UK indexes slid as tensions in the Middle East and Africa escalate and crude oil futures surge. The UK construction PMI rose in February. Whitbread agreed to buy Coffee Nation for

[R]3:30 PM London – The UK indexes slid as tensions in the Middle East and Africa escalate and crude oil futures surge. The UK construction PMI rose in February. Whitbread agreed to buy Coffee Nation for £59.5 million. International Power net slumped 85% and Standard Chartered profit improved 28%.[/R]

UK and European indexes edged lower as crude oil surge to a new 2-year high and political unrest escalates in the Middle East and North Africa.

Brent crude oil price in London trading rose as high as $115.10 a barrel.

In London, FTSE 100 Index declined 12.31 or 0.21% to 5,923.86 and the pound edged higher to close at $1.6316.

UK Construction PMI Rises

The seasonally adjusted Markit/CIPS purchasing managers'' index rose to an eight-month high of 56.5 in February from 53.7 in January.

The construction activity rebounded from the previous month when many projects were on hold on inclement weather.

UK Gross Mortgage Lending Soars

Gross mortgage lending by mutual societies in UK surged 38% annual rate to £1.4 billion in January, the Building Societies Association said on Tuesday.

Whitbread Buys Coffee Nation

Whitbread plc, the hotel and restaurant group announced the acquisition of self-serve coffee bar chain Coffee Nation for £59.5 million pounds or about $96.54 million.

In a statement, Whitbread said its wholly-owned subsidiary Costa will acquire Coffee Nation from Milestone Capital and Investec Growth & Acquisition Finance and members of its existing management team for the mentioned amount, including the repayment of Coffee Nation''s existing debt.

Gainers & Losers

BBA Aviation plc plunged 6.35% to 204.90 pence after the provider of flight support, and aftermarket services and systems reported fiscal year 2010 revenue rose 9% to £1.18 billion from £1.08 billion in 2009. Profit for the year gained 36% to £65.1 million or 14.7 pence per share compared with £47.9 million or 11.2 pence per share a year ago.

Separately, BBA stated that its Legacy Support business, which is a part of the Aftermarket Services and Systems division reached a deal to acquire GE Aviation Systems'' fuel measurement business for a cash consideration of $62.5 million on a cash and debt free basis.

Capital & Counties Properties Plc gained 1.48% to 151.00 pence after the company engaged in property investment and development stated fiscal year 2010 revenue slipped 11% to £113.7 million from £127.7 million in the previous year. Profit generated in the period was £131.6 million or 21.2 pence per share as against a loss of £131.5 million or 21.1 pence per share a year ago.

International Power Plc fell 2.46% to 325.00 pence after the utility said fiscal year 2010 revenue declined 9.2% to £3.34 billion from £3.68 billion in the prior year. Profit for the year slumped 85.2% to £145 million or 9.2 pence per share from £981 million or 61.8 pence per share in the previous year. Prior-year results have been restated.

ITV Plc surged 8.01% to 92.35 pence after the media company said fiscal year 2010 revenue grew 9.6% to £2.06 billion from £1.88 billion in the prior year. Profit for the year soared 196% to £269 million or 6.6 pence per share from £91 million or 2.3 pence per share last year.

Serco Group plc surged 3.16% to 571.50 pence after the government services company reported fiscal year 2010 revenue grew 9.1% to £4.33 billion from £3.97 billion a year ago. Profit for the year rose 20.4% to £156.7 million or 31.35 pence per share from £130.2 million or 26.45 pence per share last year.

Standard Chartered Plc surged 4.20% to 1,686.00 pence after the lender reported fiscal year 2010 profit improved 28% to $4.33 billion or 193 cents per share from restated $3.38 billion or 159.3 cents per share reported last year, helped by higher income from both of its segments as well as lower impairment losses on loans and credit risk provisions.

Net interest income for the year grew 11.2% to $8.47 billion from $7.62 billion in the preceding year.