UK Manufacturing Drops; Hargreaves, Hays Surge

Arthi Gupta
01 Sep, 2011
New York City

The UK indexes fell on mixed global economic data. UK manufacturing declined to a 26 month-low in August. Glencore expressed intent to acquire stake in South African mining group Optimum Coal. Hargreaves surged 13% after fiscal year 2011 revenue increased 31% to

[R]3:00 PM London – The UK indexes fell on mixed global economic data. UK manufacturing declined to a 26 month-low in August. Glencore expressed intent to acquire stake in South African mining group Optimum Coal. Hargreaves surged 13% after fiscal year 2011 revenue increased 31% to £207.9 million.[/R]

In London, FTSE 100 Index gained 6.36 or 0.12% to 5,400.44 and the pound edged lower to $1.6204.

UK Manufacturing Falls

UK manufacturing sector contracted in August, latest survey results from Markit Economics showed today. Also, manufacturing employment fell for the first time in 17 months, reflecting the declines in output and new orders.

The headline Markit/Chartered Institute of Purchasing & Supply manufacturing purchasing managers'' index fell to 49 in August from 49.4 in July. The latest reading is the lowest in 26 months.

Optimum Coal Confirms Glencore Offer

Glencore International Plc, the Swiss mining and commodities trader expressed its interest to acquire a controlling stake in South African mining group Optimum Coal Holdings Limited, with ordinary shares of Optimum being valued at 34 Rand or $4.85. Glencore currently owns 14.1% of Optimum''s issued share capital.

The price represents a 35.9% premium to the 30-day volume weighted average Optimum share price on August 16.

Gainers & Losers

Hargreaves Lansdown Plc surged 12.96% to 488 pence after the investment broker reported fiscal year 2011 revenue increased 31% to £207.9 million from £159.0 million in the previous year. Pre-tax profit for the year surged 46% to £126.0 million from £86.3 million last year.

Hays Plc soared 5.76% to 79.85 pence after the professional recruitment group said turnover for the year ended June 30 increased 21% to £3.26 billion from £2.69 billion in the previous year with a like-for-like sales growth of 21%.

Profit for the year surged to £80.1 million or 5.72 pence per share from £9.3 million or 0.67 pence per share.

Punch Taverns Plc rose 1.55% to 9.81 pence after the pub company said its fourth quarter trading is in line with expectations, allowing for the impact of the FIFA World Cup in June last year.

Restaurant Group plc fell 1.50% to 281.60 pence after the company engaged in the operation of restaurants and pub restaurants said first-half revenue grew 2% to £234.19 million from £229.5 million in the same period last year. Pre-tax profit in the period fell 31% to £17.19 million, lower than £24.8 million last year.

Rolls-Royce Holdings Plc climbed 1.2% to 647.50 pence after the provider of power systems and services announced the acquisition of the U.S. specialist civil nuclear reactor services business R.Brooks Associates, Inc., for $14 million.