UK Builders Raise

Mayank Mehta
23 Sep, 2009
New York City

UK stocks traded lackluster and closed lower as crude oil prices declined. Burberry led gainers after positive comments from its chief. Home builders and real estate investment trusts were in focus after several companies including Barratt, Redrow and Liberty International raise

[R]4:00PM London, 11:00 AM New York – UK stocks traded lackluster and closed lower as crude oil prices declined. Burberry led gainers after positive comments from its chief. Home builders and real estate investment trusts were in focus after several companies including Barratt, Redrow and Liberty International raise £1.15 billion.[/R]

In London FTSE 100 Index closed higher 1.53 or 0.03% to 5,144.13 and the pound edged up to close at $1.642 and at 1.112 euros.

Gainers & Losers

Barratt Developments Plc rose 0.3% to 269.50 pence after the home builder said a fully underwritten placing and 1.3 for 1 rights issue to raise gross proceeds of approximately £720.5 million through the issue of 618.4 million new ordinary shares. The company raised £545 million in rights offering and £175 million in public offering.

UBS AG and Credit Suisse Group AG are managing the sale of securities.

Burberry surged 5.4% to 502.5 pence after its chief executive Angela Ahrendts in an interview at London Fashion Week said that the UK business in the recent weeks has been “on fire.” She also said that business in Korea has improved.

Ceres Power Holdings Plc declined 7.9% to 200.50 pence after the fuel cell module company said first-half revenues rose 32% to £952,000 from £722,000 a year ago. Net loss for the first-half was £8.0 million or 11.94 pence per diluted share compared to net loss of £5.0 million or 7.98 pence per share a year ago.

Futura Medical plc rose 1.3% to 26.60 pence after the pharmaceutical company said no revenues for the first-half from £150,000 a year ago. Net loss for the first-half was £0.7 million or 1.1 pence per diluted share compared to net loss of £1.01 million or 1.7 pence per share a year ago.

The Game Group plc decreased 3.2% to 166.50 pence after the specialist personal computer and video games retailer said first-half revenues fell 7% to £690.8 million from £742.6 million a year ago. Net profit for the first-half fell 66.4% to £7.7 million or 2.23 pence per diluted share compared to net profit of £22.9 million or 6.61 pence per share a year ago.

Henderson Morley plc rose 2.5% to 0.41 pence after the AIM listed drug firm trims fiscal year losses.

Homeserve plc added 3.1% to 1,562.00 pence after the company said that profit for six months to Sept 30 for its core membership operations would be ahead of a year earlier and in line with its expectations.

Holidaybreak plc rose 1.0% to 303.00 pence after the educational and activity trips operator said that the company operation is in line with its estimates for the full year.

Ideal Shopping Direct Plc the TV and online shopping business plunged 12.3% to 82.00 pence.

Independent News & Media increased 8% to 29 euro cents after the company confirmed that the publishing group is preparing to swap bonds worth €100 million for an equity stake.

Landkom International PLC rose 4.1% to 10.94 pence after a Ukrainian producer of high-value oilseed said its average yield of winter wheat rose 32% from last year in its core land in western Ukraine.

Liberty International PLC plunged 7.0% to 524.00 pence after the real estate investment trust completed the offering of 56.1 million shares to raise £280.5 million in new ordinary shares representing around 9.9%. The company plans to use proceeds to invest in regional shopping centers and central London assets.

PureCircle Limited fell 4.2% to 269.50 pence after the sweetener maker said full-year revenues rose 76% to $60.0 million from $34.1 million a year ago. Net profit for the full-year rose 1,202% to $11.2 million or 8.42 cents per diluted share compared to net profit of $860,000 or 0.66 cents per share a year ago.

Redrow Plc rose 0.2% to 234.10 pence after the home builder said it plans rights issues to raise £156 million to strengthen its balance sheet. HSBC is acting as a manager.

RPC Group Plc added 2.8% to 255.75 pence after the manufacturer of rigid plastic packaging was upgraded to “buy” from “hold” at Altium Securities.

Topps Tiles Plc rose 0.8% to 87.25 pence after the tile and wood floor specialist said its markets were stabilizing with sales falling at a slower pace in its second half adding to hopes the recession may be ending. The company expects full-year revenues of around £186 million.

United Utilities Group PLC rose 0.2% to 456.40 pence after the water utility said that the company operations are in line with management for the first six months ending Sept.

Westminster Group Plc fell 0.8% to 47.58 pence after the security systems provider said first-half revenues rose 69% to £2.4 million from £1.4 million a year ago. Net loss for the first-half was £493,000 or 3.30 pence per diluted share compared to net loss of £413,000 or 2.9 pence per share a year ago.

Yell Group plc plunged 12.3% to 65.20 pence after the yellow pages group plans to raise at least £500 million by selling new shares, using the proceeds to repay creditors it said on Wednesday.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 56 increased, 44 declined and 2 were unchanged.

Liberty International Plc decliners in the FTSE 100 index with a loss of 10.11% followed by losses in The British Land Company Plc of 4.48%, in Hammerson Plc of 3.58%, in Eurasian Natural Resources Corporation Plc of 3.01%, in Thomas Cook Group Plc of 2.84%.

Burberry Group Plc led gainers in the FTSE 100 index with a rise of 5.43% followed by increase in Standard Chartered Plc of 4.32%, in Prudential Public Limited Company of 3.99%, in Man Group Plc of 3.37%, in Inmarsat Plc of 2.53%.