UK Q3 GDP Revised; Compass Group Surges

Mayank Mehta
25 Nov, 2009
New York City

UK stocks closed higher after the third quarter GDP estimates was revised to 0.3 shrink from 0.4% fall. London Stock Exchange Group first-half profit declines. Compass Group shares hit 7-year high as fiscal year net beats market view.

[R]4:00 PM London, 11:00 AM New York – UK stocks closed higher after the third quarter GDP estimates was revised to 0.3 shrink from 0.4% fall. London Stock Exchange Group first-half profit declines. Compass Group shares hit 7-year high as fiscal year net beats market view.[/R]

In London FTSE 100 Index closed higher 31.84 or 0.6% to 5,355.80 and the pound edged higher to close at $1.668 and closed unchanged at €1.107.

UK Q3 GDP Shrink Revised to 0.3%

In quarter three of 2009, the unemployment rate stood at 7.8% and compared to last quarter it increases 0.1 percentage points. In the third quarter, GDP fell by 0.3%, the sixth consecutive quarter of contraction.

The estimate of the gross domestic product was revised to 0.3% shrink from 0.4% fall earlier estimated according to the Office of National Statistics.

Gainers & Losers

Acal plc added 2.4% to 128.00 pence after the provider of technology products and services said first-half revenues fell 10.4% to £71.5 million from £79.8 million a year ago. Net loss for the first-half was £2.8 million compared to net loss of £8.0 million a year ago.

Britvic plc advanced 1.4% to 378.00 pence after the manufacturer of soft drinks said full-year revenues rose 5.6% to £978.8 million from £926.5 million a year ago. Net profit for the full-year rose 47% to £46.8 million compared to net profit of £31.8 million a year ago.

Caledonia Investments plc climbed 1.0% to 1,670.00 pence an investment trust company said first-half net profit was £243.4 million or 419.6 pence per diluted share compared to net loss of £107.5 million or 186.7 pence per share a year ago.

Compass Group PLC increased 5.5% to 424.10 pence after the food services and contract catering company said full-year revenues rose 17.5% to £13.4 billion from £11.4 billion a year ago. Net profit for the full-year rose 32.3% to £592 million or 31.6 pence per diluted share compared to net profit of £443 million or 23.6 pence per share a year ago.

The Davis Service Group Plc the textile maintenance business added 2.1% to 426.10 pence.

French Connection Group PLC the loss making retailer closed unchanged at 40.00 pence.

GB Group plc plunged 23.9% to 18.25 pence an identity checking business said first-half revenues fell 10.3% to £10.5 million from £11.7 million a year ago. Net profit for the first-half fell 36% to £314,000 or 0.4 pence per diluted share compared to net profit of £489,000 or 0.6 pence per share a year ago.

GW Pharmaceuticals plc the developer and manufacturer of a range of new cannabinoid medicines said full-year revenues rose 104% to £24.1 million from £11.8 million a year ago. Net profit for the full-year was £1.51 million or 1.2 pence per diluted share compared to net loss of £8.2 million or 6.8 pence per share a year ago.

Harvey Nash Group plc plunged 12.5% to 40.00 pence after the recruiter said that half of all employers are planning to freeze pay altogether, and that only 4% plan to give a raise higher the inflation rate.

Johnson Matthey Plc fell 2.6% to 1,549.00 pence after the specialty chemicals company said first-half revenues fell 18% to £3.58 billion from £4.36 billion a year ago. Net profit for the first-half fell 20% to £79.0 million or 37.3 pence per diluted share compared to net profit of £98.6 million or 46.2 pence per share a year ago.

Kopane Diamonds Developments PLC which mines for the gemstones in Lesotho and South Africa dropped 3.0% to 16.00 pence.

London Stock Exchange Group Plc decreased 0.9% to 839.00 pence said first-half revenues fell 9.2% to £310.9 million from £342.5 million a year ago. Net profit for the first-half fell 40% to £49.3 million or 18.4 pence per diluted share compared to net profit of £81.7 million or 30.0 pence per share a year ago.

QinetiQ Group plc dropped 7.2% to 165.60 pence after the defense technology group said first-half revenues rose 11% to £806.3 million from £727.4 million a year ago. Net profit for the first-half fell 97% to £0.8 million or 0.1 pence per diluted share compared to net profit of £28.2 million or 4.3 pence per share a year ago.

Sepura plc declined 0.6% to 40.00 pence after the radio maker said first-half revenues fell 4% to £31.6 million from £32.9 million a year ago. Net profit for the first-half fell 40.5% to £2.2 million or 1.6 pence per diluted share compared to net profit of £3.7 million or 2.7 pence per share a year ago.

Speedy Hire Plc decreased 1.6% to 30.50 pence after the business-to-business support services company said first-half revenues fell 28% to £184.8 million from £256.4 million a year ago. Net loss for the first-half was £10.4 million or 4.08 pence per diluted share compared to net profit of £14.2 million or 7.53 pence per share a year ago.

Sportingbet Plc increased 6.3% to 75.00 pence an online bookmaker said first quarter revenues rose 26% to £48.6 million from £38.6 million a year ago. Net profit for the quarter rose 56.4% to £6.1 million or 1.2 pence per diluted share compared to net profit of £3.9 million or 0.7 pence per share a year ago.

Telecom plus PLC slipped 0.4% to 312.50 pence after the supplier of wide range of utility services to residential and business customers said first-half revenues rose 40% to £124.8 million from £88.9 million a year ago. Net profit for the first-half fell 40.3% to £4.3 million or 6.3 pence per diluted share compared to net profit of £7.5 million or 10.7 pence per share a year ago.

TR Property Investment Trust plc rose 1.0% to 167.70 pence said the anticipation that extremely low interest rates will be with us and that has pushed asset prices higher as investors look for higher yields.

United Utilities Group PLC dropped 1.4% to 478.90 pence after the water group said first-half revenues rose 0.8% to £1.21 billion from £1.20 billion a year ago. Net profit for the first-half rose 4,402% to £198.1 million or 29.0 pence per diluted share compared to net profit of £4.4 million or 0.6 pence per share a year ago.

WS Atkins plc closed unchanged at 10.55 pence an engineering consultancy services provider said first-half revenues fell 1% to £701.2 million from £710.8 million a year ago. Net profit for the first-half fell 12.6% to £33.9 million or 34.3 pence per diluted share compared to net profit of £38.8 million or 39.0 pence per share a year ago.

Yell Group plc fell 0.2% to 41.91 pence after the yellow pages publisher launched a new ad format and a new recruitment Web site.