UK Retail Sales Fall; Man Group Drops 7%

123jump.com Staff
28 May, 2009
New York City

Weak earnings from asset management companies and retail sales impacted the UK averages. Speedy Hire to raise

[R]7:00 PM London, 2:00 PM New York – Weak earnings from asset management companies and retail sales impacted the UK market averages. Speedy Hire plans to raise £100 million in a rights offering. Wolseley declined after profit dropped in the nine-month period. PayPoint annual profit increased. Man Group declined 7% after assets under management fell.[/R]

UK stocks edged lower after retailer reported weak sales in May and weak profits from Man Group, Brewin & Dolphin and Tate & Lyle. PayPoint reported a rise in net income.

FTSE 100 index declined 0.7% or 28.69 to 4,387.54.

UK retailers reported weak environment in May after glimmer of hope in April. Net 17% of retailers reported fall in revenues compared to net 3% increase in sales in April.

The Confederation of British Industry survey of 80 retailers reported tough retail environment persists for retailers.

The British pound declined against euro and dollar and rose against the Japanese yen.

Gainers & Losers

Tate & Lyle declined 0.8% to 290 pence after it reported annual revenue increase 24% and net profit declined 65%.

PayPoint increased 1.5% to 462 pence after it reported net revenues and profit increase for the full year.

Speedy Hire dropped 17.5% to 145.25 pence after it plans to raise £100 million in a rights offering. The tools and machinery rental company plans to offer nine-for-one stock and sell 458.7 million at 23 pence each, whopping 87% discount to Wednesday’s closing price.

Brewin Dolphin Holdings Plc declined 1.9% after it reported first half profit decline of 38%. Total funds under management declined to £16.3 billion.

Man Group Plc declined 7% to 232.75 pence after it reported that assets under management continue to fall. The assets under management declined to $44 billion and annual revenues declined 22.8% to $2.49 billion. The net profit declined to $503 million from $3.47 billion a year ago.

Wolseley Plc declined 18.2% to 1,005 pence after it reported operating profit for nine months declined 58% to £189 million.

Earnings Review

Brewin Dolphin Holdings Plc, UK investment manager and stockbroker said first-half revenues fell 6% to £89.62 million from £95.13 billion a year ago. Net profit in the year fell 39% to £9.38 million or £4.4 per diluted share compared to net profit of £15.3 million or £7.2 per share a year ago.

Hogg Robinson Group plc, the world''s biggest travel management company said full-year revenues rose 5.7% to £351.3 million from £332.2 million a year ago. Net profit in the year fell 56% to £7.4 million or £2.4 per diluted share compared to net profit of £16.7 million or £5.4 per share a year ago.

Jessops plc, the retailer of photographic products and services said first–half revenues fell 8% to £124.01 million from £134.80 million a year ago. Net loss in the year was £13.06 million or £12.7 per diluted share compared to net loss of £11.24 million or £10.9 per share a year ago.

PayPoint plc, a cash and Internet payment company in UK and Ireland said full-year revenues rose 6% to £224.35 million from £212.15 million a year ago. Net profit in the year rose 13.3% to £23.8 million or £35.3 per diluted share compared to net profit of £21 million or £30.8 per share a year ago.

Tate & Lyle PLC, the manufacturer and marketer of food and industrial ingredients said full-year revenues rose 24% to £3.55 billion from £2.87 billion a year ago. Net profit in the year fell 62.6% to £70 million or £19.4 per diluted share compared to net profit of £187 million or £23.6 per share a year ago.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 22 increased, 80 declined and 0 were unchanged.

Man Group Plc decliners in the FTSE 100 index with a loss of 6.9% followed by losses in Carnival PLC of 5.9%, in The British Land Company PLC of 5.6%, in Schroders PLC of 5.1% and in Royal Bank of Scotland Group PLC of 4.5%.

Cairn Energy PLC led gainers in the FTSE 100 index with a rise of 3.5% followed by increase in Fresnillo Plc of 3.3%, in Randgold Resources Ltd of 3.0%, in Tullow Oil plc of 2.4%, in Johnson Matthey PLC of 1.8%.

Europe Markets Review

In London FTSE 100 Index closed lower 28.69 or 0.65% to 4,387.54, in Paris CAC 40 Index decreased 31.16 or 0.95% to close at 3,263.70 and in Frankfurt DAX index lower 67.89 or 1.36% to close at 4,932.88. In Zurich trading SMI decreased 68.83 or 1.27% to close at 5,350.59.