UK Indexes Rise; Pearson Acquires Schoolnet for $230 Million

Arthi Gupta
26 Apr, 2011
New York City

The UK indexes traded higher after the Confederation of British Industry forecasted manufacturing recovery firmly on track. Irish manufacturing output price inflation accelerated in March. Pearson agreed to acquire Schoolnet for $230 million.

[R]3:45 PM London – The UK indexes traded higher after the Confederation of British Industry forecasted manufacturing recovery firmly on track. Irish manufacturing output price inflation accelerated in March. Pearson agreed to acquire Schoolnet for $230 million.[/R]

In London, FTSE 100 Index gained 25.59 or 0.43% to 6,043.89 and the pound edged lower to close at $1.6452.

UK Manufacturing Recovers

The UK factory output growth supported by robust domestic and foreign orders will maintain the manufacturing recovery firmly on track, the Confederation of British Industry said today.

The CBI reported that 36% of manufacturers responding to its quarterly industrial trends survey reported an increase in output in the last three months against 15% saying it had fallen, making a rounded balance of +20%.

Companies are also optimistic that demand and production will continue rising over the next three months, with a balance of +22% of firms predicting that output growth will be maintained at a similar pace this quarter. A balance of +11% of manufacturers expect domestic and export orders to continue to increase over the next quarter.

Irish Output Prices Rise

Ireland''s output price index for the manufacturing industry increased 0.9% annually in March, faster than February''s 0.6% growth, data released by the Central Statistics Office showed.

There was a 6.3% rise in factory-gate prices in the food industry. Mining and quarrying prices and energy prices moved up 9.1% and 5.7% respectively in March.

On a monthly basis, factory gate prices declined 0.2% in March, matching February''s fall.

Pearson Acquires Schoolnet

Pearson Plc announced the acquisition of the New York City-based education technology firm Schoolnet, Inc. for $230 million in cash. The acquisition is expected to enhance Pearson’s adjusted earnings per share and return on invested capital in 2012.

Gainers & Losers

Domino Printing Sciences Plc gained 2.63% to 625.00 pence after the printing technologies firm agreed to join with NewMarket Impressions LLC, a company controlled by The Yucaipa Companies, LLC, to form a new company to develop and deploy proprietary food safety and traceability technologies for the U.S. egg industry, with plans to expand globally.

Heritage Oil Plc surged 6.39% to 259.90 pence after the oil explorer announced that it is buying back $100 million in shares.

Hochschild Mining Plc fell 1.11% to 623.00 pence after the silver and gold mining business operator said that production at its 51%-owned San Jose silver and gold mine in Argentina has stopped due to a strike. The Argentine Mining Labor Association initiated the action due to a dispute over pay increases for contract workers.

SDL PLC rose 1.03% to 638.50 pence after the translation software firm said its performance for the first quarter of 2011 was in line with management expectations for both revenue and operating profit.

Staffline Group PLC soared 10.41% to 197.09 pence after the temporary staff provider announced the acquisition of Fourstar Employment & Skills Ltd. from the Dutch company Fourstar Group Limited, a wholly owned subsidiary of Lern Holding B.V, for £3 million in cash.

Uniq Plc gained 4.52% to 78.00 pence after the convenience food group reported fiscal 2010 revenues rose 8.6% to £311.9 million from £287.2 million in the previous year. Profit generated in the year was £24.2 million or 21.3 pence per share versus loss of £20.9 million or 18.4 pence per share last year.