UK GDP Shrinks Less; Songbird to Sell Stake

Mayank Mehta
28 Aug, 2009
New York City

The advertising agency Aegis first half profit plunged but revenues increased. Johnston press losses widen as revenues declined 25%. PartyGaming revenues decline on strong dollar. Songbird Estate prepares to sell stakes to Chinese and Middle Eastern investors.

[R]4:00PM London, 11:00 AM New York – The advertising agency Aegis first half profit plunged but revenues increased. Johnston press losses widen as revenues declined 25%. PartyGaming revenues decline on strong dollar. Songbird Estate prepares to sell stakes to Chinese and Middle Eastern investors.[/R]

UK economy contracted at 0.7% rate in the second quarter, lower than the previous estimate of 0.8% decline by the Office for the National Statistics. The data was revised on higher output in manufacturing and energy sectors and the government rebate of 2,000 pounds to the new car buyers in exchange of old vehicles.

In London FTSE 100 Index closed higher 55.61 or 1.1% to 4,924.96 and the pound changed at $1.63 and unchanged at 1.13 euros.

Gainers & Losers

Aegis Group plc added 1.3% to 99.40 pence an advertising firm said first-half revenues rose 4.8% to £636.7 million from £607.6 million a year ago. Net loss for the first-half was £2.1 million or 0.2 pence per diluted share compared to net profit of £30 million or 2.6 pence per share a year ago.

AGA Rangemaster Group Plc advanced 8.5% to 146.50 pence after the cooker maker said first-half revenues fell 18.8% to £117.8 million from £145.1 million a year ago. Net loss for the first-half was £1.6 million or 2.3 pence per diluted share compared to net profit of £9.8 million or 9.5 pence per share a year ago.

The Davis Service Group Plc climbed 2.6% to 393.00 pence an international laundry and uniform company said first-half revenues rose 3% to £481.5 million from £467.1 million a year ago. Net profit for the first-half fell 6.4% to £20.4 million compared to net profit of £21.8 million a year ago.

Dana Petroleum plc tumbled 3.3% to 1,413.00 pence after the oil explorer posted a 96% drop in first-half net profit on Friday on a write-down related to unsuccessful exploration spending and lower crude prices.

Heritage Oil Limited fell 3.8% to 517.50 pence after the independent international oil and gas explorer said first-half revenues fell 60% to $0.8 million from $2 million a year ago. Net loss for the first-half was $12.8 million or 5 cents per diluted share compared to net loss of $16.5 million or 7 cents per share a year ago.

Independent News & Media PLC the publisher declined 3.5% to 28 euro cents and said first-half revenues fell 22% to €608.8 million from €780.4 million a year ago. Net loss for the first-half was €53.8 million or 6.4 cents per diluted share compared to net profit of €48.7 million or 6.0 cents per share a year ago.
JKX Oil & Gas plc slipped 0.5% to 249.10 pence after the oil explorer said total revenues decreased by 33% to $78.6 million compared to 2008 $116.8 million as a result of a 30% fall in oil production in the period and the significant fall in world oil prices bringing the average oil realization down 53%.
Johnston Press plc gained 9.3% to 38.00 pence after the publisher said first-half revenues fell 25% to £218.6 million from £293.1 million a year ago. Net loss for the first-half was £67.5 million or 10.57 pence per diluted share compared to net profit of £64.8 million or 15.13 pence per share a year ago.

Lloyds Banking Group plc surged 4.5% to 109.48 on the rumors that the troubled financial services group may sell stakes in Scottish Widow and Clerical Medical and offer rights issue to lower its reliance on government support.

PartyGaming plc jumped 0.2% to 266.70 pence an online gaming company said first-half revenues fell 21% to $201.3 million from $254.8 million a year ago. Net loss for the first-half was $66.9 million or 16.5 cents per diluted share compared to net profit of $22.7 million or 5.3 cents per share a year ago.

The Restaurant Group plc increased 13.2% to 197.00 pence an independent restaurant and pubs operators said first-half revenues rose 3.4% to £210.1 million from £203.2 million a year ago. Pre-tax profit for the first-half rose 2.8% to £21.7 million compared to net profit of £21.1 million a year ago.

Songbird Estates Plc decreased 0.7% to 33.50 pence after the company prepares to sell stake in the company to sovereign funds controlled by Qatar and investors in China to repay £880 million in debt.

Morgan Stanley, Qatar Holding, China Investment Corp and GF Investments are expected to take substantial part of the offering.

The company has already received £100 million of £150 million through investor groups and if the company fails to place shares then the loan will transfer to investors with similar terms to Citigroup which is lender for the £880 million debt.

Songbird is the holding company that owns 16 of the 30 Canary Wharf office buildings.

Stagecoach Group plc rose 1.3% to 138.60 pence after the bus and rail operator reported comparable bus revenues increased 4.4% and train revenues increased 0.9%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 69 increased, 31 declined and 2 were unchanged.

Serco Group Plc decliners in the FTSE 100 index with a loss of 3.02% followed by losses in United Utilities Group Plc of 2.77%, in BG Group Plc of 2.31%, in National Grid Plc of 1.90%, in Smith & Nephew Plc of 1.78%.

Lloyds Banking Group Plc led gainers in the FTSE 100 index with a rise of 6.34% followed by increase in Kazakhmys Plc of 5.50%, in Xstrata Plc of 4.36%, in Eurasian Natural Resources Corporation Plc of 4.22%, in Randgold Resources Ltd. of 4.08%.