UK Services Expand; Taylor Wimpey Loss

Mayank Mehta
05 Aug, 2009
New York City

UK manufacturing output increased in June but declined in the quarter. Service index showed a slow and steady expansion. F&C Asset Management reported loss in the first-half. Ukraine based iron ore miner, Ferrexpo plc surged after reporting lower than expected profit decline.

[R]4:00PM London, 11:00 AM New York – UK manufacturing output increased in June but declined in the quarter. Service index showed a slow and steady expansion. F&C Asset Management reported loss in the first-half. Ukraine based iron ore miner, Ferrexpo plc surged after reporting lower than expected profit decline.[/R]

UK service index increased to 53.2 in July from 51.6 in June according to the data released by Markit.

Separately, the Office of National Statistics said factory output increased 0.4% in June from May. Total output increased 0.5% in June.

Total output in the second quarter to June decreased 0.6% from the first quarter and declined 11.8% from a year ago. Manufacturing output decreased 0.2% from the previous quarter and declined 12.5% from a year ago.

The pound edged higher after the release of two economic reports.

In London FTSE 100 Index closed higher 15.38 or 0.35% to 4,361.84 and the pound closed at $1.70 and 1.18 euros.

Gainers & Losers

Atkins (WS) plc dropped 1.3% to 640.00 pence after the engineering group said revenues in the quarter ending in June were flat compared with the same period a year ago on transport sector projects helped.

Ferrexpo plc added 11.2% to 176.40 pence an iron ore producer said first-half revenues fell 42% to £301.8 million from £519.5 million a year ago. Net income in the first-half fell 82% to £28.7 million or 4.88 pence per diluted share compared to net profit of £157.7 million or 23.20 pence per share a year ago.

F&C Asset Management plc jumped 3.3% to 74.95 pence after net revenues in the first half declined 10% to £105.1 million from a year ago. In the period, net loss surged to £8.7 million from net income of £3.3 million a year ago. Assets under management declined to £88.3 billion from £96.5 billion in the period a year ago.

GlaxoSmithKline plc added 0.3% to 1,145.50 pence after the drug manufacturer said nine government contracts have been signed for additional 96 million of the H1N1 swine flu vaccine since it announced in July that the US government had ordered 195 million doses.

Lloyds Banking Group plc advanced 13.6% to 95.77 pence after the financial services group said first-half net interest income rose 23.3% to £4.50 billion from £3.65 billion a year ago. Net income in the first-half was £7.1 billion or 41.8 pence per diluted share compared to net profit of £570 million or 9.8 pence per share a year ago.

Mondi plc plunged 1.6% to 271.60 pence after the paper and packaging group fell into losses in the first half. Revenues in the first half declined 20% to 2.6 billion euros and net loss of 1 million euros compared to profit of 171 million euros.

Nichols plc surged 9.0% to 265.00 pence after the soft drinks group said first-half revenues rose 28% to £37.5 million from £29.1 million a year ago. Pre-tax profit in the first-half rose 34% to £4.3 million compared to net profit of £3.2 million a year ago.

Old Mutual plc rose 0.5% to 95.55 pence after the financial services business operator said first-half revenues rose 235% to £6.6 billion from £1.97 billion a year ago. Net loss in the first-half was £70 million or 1.7 pence per diluted share compared to net profit of £549 million or 10.5 pence per share a year ago.

Premier Foods Plc rose 2.9% to 41.19 pence after the food producer said first-half revenues rose 3.5% to £1.25 billion from £1.21 billion a year ago. Net loss in the first-half was £35.9 million or 2.0 pence per diluted share compared to net profit of £1.3 million or 0.1 pence per share a year ago.

Standard Life plc fell 0.6% to 194.60 pence after the asset manager said first-half sales fell 78% to £2.3 billion from £10.3 billion a year ago. Net loss in the first-half was £20 million or 0.9 pence per diluted share compared to net profit of £161 million or 7.4 pence per share a year ago.

Taylor Wimpey plc fell 1.6% to 39.37 pence after the homebuilder in the first half completed 4,702, 25% fewer homes than a year ago. Revenues in the period declined to £1.13 billion from £1.56 billion. The company wrote down its assets by £527 million in addition to £690 million.

Topps Tiles Plc slipped 1.4% to 84.00 pence after the tiles and wood flooring retailer estimated slight improvement in like-for-like sales.