UK Inflation Hovers at 1.8%; James Fisher Surges

Mayank Mehta
18 Aug, 2009
New York City

The measure of annual inflation stayed at 1.8% in July matching the rate in June. The pound edged higher after the release of the report. British Land Company decreased 2.5% after it reported quarterly loss. The auto dealer Pendragon Plc declined after a steep fall in sales and profit.

[R]7:00 PM London, 2:00 PM New York – The measure of annual inflation stayed at 1.8% in July matching the rate in June. The pound edged higher after the release of the report. British Land Company decreased 2.5% after it reported quarterly loss. The auto dealer Pendragon Plc declined after a steep fall in sales and profit.[/R]

The measure of annual inflation, Consumer Price Index in July increased 1.8%, unchanged from June. The Road Price Index declined 1.4% in July compared to fall of 1.6% in June. The RPI index excluding mortgage interest payment increased 1.2% compared to 1% increase in June, according to the latest release from the Office of National Statistics.

In London FTSE 100 Index closed higher 10.22 or 0.2% to 4,655.23 and the pound closed at $1.64 and 1.16 euros.

Gainers & Losers

Amino Technologies plc gained 45.00 pence after an online video services first-half revenues fell 12% to £12.80 million from £14.53 million a year ago. Net loss for the first-half was £3.56 million or 6.53 pence per diluted share compared to net profit of £0.99 million or 1.72 pence per share a year ago.

Arc International PLC added 2.4% to 15.88 after the chip designer recommended the acquisition bid from Virage Logic for £25 million.

Bioquell Plc gained 5.2% to 140 pence after the bio-decontamination technologies and compliance services specialist boosts half-year pre-tax profit 17%.

The British Land Company PLC slipped 2.5% to 483.40 pence after the real estate developer said first quarter net rental income fell 20.5% to £101 million from £127 million a year ago. Net loss for the quarter was £273 million or 32 pence per diluted share compared to net loss of £565 million or 92 pence per share a year ago.

Carillion plc increased 1.2% to 285.30 pence after the support services company joint venture was awarded a contract to build 40 schools over ten-years that may cost as much as £500 million.

Dominion Petroleum Limited rose 23.6% to 7.88 pence after the Bermuda-based oil and gas explorer secured the injection of $10 million through stock sale.

James Fisher and Sons PLC rose 4.7% to 482.00 pence after the marine services group today announces the purchase of MB Faber Ltd for up to £5.25 million in cash. The consideration consists of £4.0 million net of cash payable on completion with up to a further £1.25 million in March 2010.

Kiwara Plc the Zambia-based exploration company surged 6.4% to 41.00 pence.

Luminar Group Holdings plc the nightclub owner dropped 3.2% to 140.00 pence after the company received offer for 95.5% of shares available in open offer and the rest of the placement was completed with other buyers.

Mears Group PLC surged 0.6% to 272.75 pence after the social housing services company said first-half revenues rose 14.5% to £232.7 million from £203.3 million a year ago. Pre-tax profit for the first-half fell 5.2% to £7.3 million compared to net profit of £7.7 million a year ago.

Pendragon PLC plunged 5.5% to 42.50 pence after the car dealer said first-half revenues fell 36% to £1.59 billion from £2.48 billion a year ago. Pre-tax profit for the first-half fell 54% to £6.0 million or 0.9 pence per diluted compared to net profit of £13.0 million or 2.0 pence per share a year ago.

Rio Tinto plc added 3.6% to 2,327.00 pence after the Anglo-Australian miner received a binding offer from Amcor Ltd to acquire the majority of the Alcan packaging businesses for a total of $2.025 billion.

Tribal Group PLC rose 6.2% to 85.00 pence after the public-sector consultant said first-half revenues rose 11% to £125.2 million from £113.3 million a year ago. Net profit for the first-half fell 15% to £5.7 million or 6.3 pence per diluted share compared to net profit of £6.7 million or 7.8 pence per share a year ago.

Vectura Group plc advanced 1.7% to 81.90 pence after the respiratory inhaler firm initiated NVA237 phase III clinical studies, with QVA149 phase III studies expected to start in late 2009.

VP plc rose 174.00 pence after the tool rental firm said the trading environment is challenging since the latest results released in May and the business recovery is expected to be slow.

Wichford PLC gained 7.6% to 28.00 pence after the property investment company announced interim dividend.

On 5 August 2009, the company announced a fully underwritten 7 for 1 rights issue to raise proceeds of approximately £52.2 million net of expenses by the issue of 929.33 million new shares at a price of 6 pence per new share, nearly 70% discount.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 79 increased, 22 declined and 1 were unchanged.

The British Land Company Plc decliners in the FTSE 100 index with a loss of 2.66% followed by losses in Vedanta Resources Plc of 1.80%, in Invensys Plc of 1.62%, in Petrofac Plc of 1.02%, in The Sage Group Plc of 0.76%.

AMEC Plc led gainers in the FTSE 100 index with a rise of 4.42% followed by increase in Legal & General Group Plc of 4.17%, in InterContinental Hotels Group Plc of 3.50%, in Rexam Plc of 2.90%, in The Royal Bank of Scotland Group Plc of 2.87%.