Lloyds

Mayank Mehta
24 Nov, 2009
New York City

UK stocks closed lower tracking the weakness in metals and commodities. Lloyds of London plans to raise

[R]4:00 PM London, 11:00 AM New York – UK stocks closed lower tracking the weakness in metals and commodities. Lloyds of London plans to raise £13.5 billion in the largest rights offering in the UK. De La Rue plc, the commercial printer declined after its net dropped 90%.[/R]

UK stocks traded sideways and resource stocks edged lower after copper and precious metal prices decreased in London trading.

In London FTSE 100 Index closed lower 20.17 or 0.3% to 5,335.33 and the pound edged lower to close at $1.655 and edged lower to close at €1.107.

Lloyds in Record Rights Offering

Lloyds Banking Group Plc said that it plans to raise £13.5 billion in a rights offering that will price the share at nearly 60% discount to its current price. The offering will price each share at 37 pence and offer 1.34 shares for every share held.

The rights offering hopes to place 36.5 billion shares.

The UK government has approved the offering and plans to take up £5.8 billion of the offering. Shareholders are expected to approve the offering this week and shares are expected to trade on Dec 14.

The largest rights offering by any company in London will surpass the previous offering of £12.5 billion raised by HSBC Plc.

Gainers & Losers

Bovis Homes Group PLC dropped 1.1% to 420.00 pence after the homebuilder said that Neil Cooper, Group Finance Director resigned from the board and leave the company.

The BSS Group plc added 0.9% to 257.40 pence after the distributor of tools and home fixtures said first-half revenues fell 5% to £650.6 million from £685.9 million a year ago. Net profit for the first-half fell 29% to £14.6 million or 11.8 pence per diluted share compared to net profit of £20.5 million or 16.6 pence per share a year ago.

Carclo plc decreased 0.6% to 97.84 pence after the supplier of plastic products said first-half revenues fell 3.7% to £41.1 million from £42.7 million a year ago. Net profit for the first-half fell 49% to £1.25 million or 2.2 pence per diluted share compared to net profit of £2.44 million or 4.3 pence per share a year ago.

Coffeeheaven International plc the Eastern European coffee shop operator slipped 5.0% to 19.00 pence.

De La Rue plc fell 2.8% to 948.00 pence after the commercial security printer and papermaker said first-half revenues rose 3% to £252.2 million from £244.7 million a year ago. Net profit for the first-half fell 90.6% to £31.1 million or 31.4 pence per diluted share compared to net profit of £330.7 million or 217.7 pence per share a year ago.

Homeserve plc gained 5.7% to 1,607.00 pence after the repair and maintenance group said first-half revenues rose 3% to £173.8 million from £168.9 million a year ago. Net loss for the first-half was £12.3 million or 19.5 pence per diluted share compared to net profit of £10.1 million or 15.7 pence per share a year ago.

Intec Telecom Systems plc rose 0.4% to 108.50 pence after the providers of business support systems solutions said full-year revenues rose 23.6% to £167.9 million from £135.8 million a year ago. Net profit for the full-year rose 265.7% to £38.4 million or 11.97 pence per diluted share compared to net profit of £10.5 million or 3.32 pence per share a year ago.

Intermediate Capital Group PLC increased 3.0% to 280.80 pence an investment firm and fund manager said first-half net interest income rose 11% to £102.5 million from £92.3 million a year ago. Net profit for the first-half fell 93.4% to £1.7 million or 0.6 pence per diluted share compared to net profit of £25.7 million or 12.1 pence per share a year ago.

Informa plc declined 6.5% to 291.50 pence after the Lloyds List publisher said it is in merger talks to acquire Germany based academic publisher Springer Science + Business Media.

Iomart Group plc closed unchanged at 45.00 pence after the data centre and managed hosting provider said first-half revenues rose 47% to £8.4 million from £5.7 million a year ago. Net profit for the first-half fell 89% to £1.4 million or 1.37 pence per diluted share compared to net profit of £12.41 million or 19.71 pence per share a year ago.

KCOM Group PLC rose 0.5% to 44.50 pence after the communications firm said first-half revenues fell 13.5% to £210.8 million from £243.6 million a year ago. Net profit for the first-half was £9.7 million or 1.89 pence per diluted share compared to net loss of £101.8 million or 19.71 pence per share a year ago.

Lloyds Banking Group plc rose 1.2% to 92.60 pence.

Paragon Group of Companies PLC increased 2.8% to 155.20 pence an independent provider of mortgages to residential property investors said full-year net interest income fell 4% to £134.8 million from £140.4 million a year ago. Net profit for the full-year rose 11% to £41.1 million or 13.7 pence per diluted share compared to net profit of £37.1 million or 17.9 pence per share a year ago.

Petrofac Limited fell 0.05% to 998.00 pence and the oil & gas facilities service provide established a Joint Venture agreement with Zamil Group Holding Company to create and operate a new service centre facility in the Kingdom of Saudi Arabia.

Rio Tinto plc closed unchanged at 3,265.00 pence after the mining giant said chief executive Sam Walsh has welcomed the agreement reached with Iron Ore Holdings, enabling the sale of ore from IOH''s Phil''s Creek deposit to be sold to the company under an innovative mine-gate sale process.

Severn Trent Plc gained 1.5% to 1,012.00 pence after the water supplier said first-half revenues rose 4.6% to £852.1 million from £814.3 million a year ago. Net profit for the first-half was £149.7 million or 63.4 pence per diluted share compared to net loss of £83.8 million or 35.8 pence per share a year ago.

SSL International plc rose 4.0% to 699.00 pence after the consumer products company said first-half revenues rose 21% to £390.9 million from £322.5 million a year ago. Net profit for the first-half rose 45% to £32.8 million or 15.2 pence per diluted share compared to net profit of £22.6 million or 11.6 pence per share a year ago.

Topps Tiles Plc dropped 4.7% to 90.00 pence after the tile and wood flooring retailer said full-year revenues fell 10.6% to £186.1 million from £208.1 million a year ago. Net profit for the full-year fell 89.6% to £1.7 million or 1.00 pence per diluted share compared to net profit of £16.4 million or 9.55 pence per share a year ago.

Torotrak plc fell 4.8% to 27.12 pence after the technology company said first-half revenues rose 55.6% to £1.4 million from £0.9 million a year ago. Net loss for the first-half was £2.08 million or 1.30 pence per diluted share compared to net profit of £1.86 million or 1.27 pence per share a year ago.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 32 increased, 70 declined and 0 were unchanged.

The Royal Bank of Scotland Group Plc decliners in the FTSE 100 index with a loss of 3.96% followed by losses in Thomas Cook Group Plc of 3.42%, in Kazakhmys Plc of 2.95%, in Rio Tinto Plc of 2.85%, in Vedanta Resources Plc of 2.65%.

Lloyds Banking Group Plc led gainers in the FTSE 100 index with a rise of 2.56% followed by increase in Invensys Plc of 2.02%, in Marks and Spencer Group Plc of 1.89%, in Inmarsat Plc of 1.84%, in ICAP Plc of 1.75%.