M&S, Next Earnings Lift UK Indexes

123jump.com Staff
04 Nov, 2009
New York City

UK stocks closed higher after retailers Marks & Spencer and Next plc reported better than expected earnings. Home builders advanced on positive comments from Redrow and Taylor Wimpey. Diageo completed its $500 million bond offering.

[R]4:00 PM London, 11:00 AM New York – UK stocks closed higher after retailers Marks & Spencer and Next plc reported better than expected earnings. Home builders advanced on positive comments from Redrow and Taylor Wimpey. Diageo completed its $500 million bond offering.[/R]

UK retailers led the advances after Marks & Spencer and Next plc reported earnings at the upper end of expectations. The broader market was also higher.

In London FTSE 100 Index closed higher 81.73 or 1.62% to 5,118.94 and Debenhams and Burberry Group surged more than 5%.

Gainers & Losers

Alterian plc added 3.1% to 187.00 pence the design and development of software tools said first-half quarter revenues rose 39.8% to £14.4 million from £10.3 million a year ago. Net loss for the first-half was £269,000 or 0.5 pence per diluted share compared to net loss of £2.22 million or 4.4 pence per share a year ago.

Aviva plc rose 5.4% to 399.90 pence and the life insurance group today lifted restrictions on withdrawals from its unit-linked UK property fund and reported better margins on the sale of life insurance products.

The British Land Company PLC the real estate investment trust climbed 3.3% to 467.80 pence.

Cobham plc rose 0.9% to 224.50 pence after the defence and commercial aerospace equipment maker said for the first nine months revenue has “grown strongly, broadly in line with the board’s expectations.”

Debenhams Plc increased 6% to 80.90 pence and Burberry Group Plc increased 5.1% to 561 pence after M&S and Next reported better than expected earnings.

Diageo plc fell 0.7% to 993.00 pence priced 5-year bonds of $500 million.

FirstGroup plc advanced 1.2% to 380.00 pence after the bus and rail company said first-half quarter sales rose 4.7% to £2.90 billion from £2.77 billion a year ago. Net profit for the first-half fell 74.3% to £18.8 million or 3.9 pence per diluted share compared to net profit of £73.1 million a year ago.

Go-Ahead Group PLC fell 2.2% to 1,419.00 pence after the bus and train operator said that it has formed a new joint venture company to pursue potential opportunities for school bus contracts in North America.

J D Wetherspoon plc increased 2.2% to 475.30 pence after the cut price food and drinks pubs group said a slowdown in sales growth in the first quarter but said it remained confident of its full-year prospects.

Liberty International PLC added 2.1% to 441.90 pence after the shopping centre owner said Capital Shopping Centres’ occupancy improved since 30 June 2009 from 98.3% to 98.9%.

Logica Plc climbed 5.7% to 121.70 pence after the IT contracting company said overall third quarter revenue performance in line with management expectations, with outsourcing growth of 11% and a 12% decline in consulting and professional services.

Marks and Spencer Group plc rose 6.1% to 361.90 pence after the clothing retailer said first-half quarter sales rose 2.8% to £4.34 billion from £4.22 billion a year ago. Net profit for the first-half rose 0.5% to £224.3 million or 14.2 pence per diluted share compared to net profit of £223.2 million or 14.2 pence per share a year ago.

Morgan Sindall plc the construction and regeneration group increased 3.4% to 585.00 pence.

Next plc rose 6.1% to 1,921.00 after the fashion chain sales in the third quarter to October were ahead of management expectations.

Pace plc added 1.7% to 228.00 pence after the digital TV set-top box maker reiterated its business outlook.

Redrow plc rose 7.8% to 150.30 pence after the home builder said home sales in the financial year to date have been “remarkably stable” with net private reservations averaging 45 homes per week and up 47% from a year in ago in the first 18 weeks of the fiscal year.

Rightmove Group Plc the residential property industry increased 2.4% to 539.00 pence.

Taylor Wimpey plc surged 9.2% to 40.39 pence after the home builder said UK housing market conditions continue to be significantly better than the equivalent period of 2008 and home prices are up 9% from first half and backlog of homes on order of £1 billion.

Umeco plc rose 3.3% to 267.00 pence after the advanced composite materials and supply chain services company said first-half quarter sales rose 1.2% to £199.6 million from £197.2 million a year ago. Net profit for the first-half fell 47.4% to £4.1 million or 8.5 pence per diluted share compared to net profit of £7.8 million or 16.2 pence per share a year ago.