Legal & General, Thorntons Rise in London

Mayank Mehta
17 Feb, 2010
New York City

UK indexes edged higher as they have been in the last six sessions. Banks and financial services led the gainers. Legal & General Group net cash generated doubles. Balfour Beatty wins motorway deal. Thorntons profits jump 26%. Kedco says gasification plant delayed for lack of funds.

[R]4:00 PM London, 11:00 AM New York – UK indexes edged higher as they have been in the last six sessions. Banks and financial services led the gainers. Legal & General Group net cash generated doubles. Balfour Beatty wins motorway deal. Thorntons profits jump 26%. Kedco says gasification plant delayed for lack of funds.[/R]

The UK unemployment rate for three months to December was 7.8%, unchanged from the previous quarter. The number of unemployed people fell by 3,000 over the quarter to reach 2.46 million.

The number of people unemployed for more than a year increased by 37,000 over the quarter to reach 663,000, record high since the quarter ending in September 1997.

In London FTSE 100 Index increased 32.58 or 0.62% to 5,276.64 and the pound edged higher to close at $1.579 and to €1.150.

Banks gained the third day this week. Barclays added 2.9% to 302.3 pence and Lloyds Banking Group Plc increased 3.2% to 50.57 pence and RBS gained 1.9% to 33.90 pence.

Lloyds and RBS are scheduled to release earnings next week.

Gainers & Losers

Balfour Beatty plc rose 1.7% to 267.90 pence after the international infrastructure group, announced that it has been named as one of the four delivery partners for the Highways Agency’s framework contract.

Burberry Group plc rose 1.6% to 628.50 pence after the luxury fashion house today announced the planned restructuring of its Spanish operations.

Cobham plc increased 3.4% to 235.30 pence after the company announced that it has been awarded a contract from Sikorsky Aircraft Corporation to manufacture advanced composite components and assemblies for the main rotor blades of the United States Marine Corps'' CH-53K Heavy Lift Replacement Helicopter under development by Sikorsky Aircraft Corp., a subsidiary of United Technologies Corp.

Domino’s Pizza UK & Ireland Plc added 3.2% or 10.5 pence to 337.5 pence after chief executive Chris Moore was cited by the Financial Times and said that the company may increase it stock repurchase program of £17.5 million.

Hogg Robinson Group plc rose 2.9% to 35.00 pence after the business travel specialist issued the group still expects to deliver a full-year performance in line with market expectations.

Kedco plc rose 6.2% to 0.12 pence after the energy group focusing on green-energy production in the UK and Ireland said on Wednesday it did not expect to commission its Irish gasification plant in the financial year ending in June, the company is still looking for debt financing for the plant.

Legal & General Group Plc added 2.6% to 76.35 pence after the insurer reported over £650 million UK net cash generated. Over the next twelve months company anticipate only modest growth in the UK economy and activity in the housing market is likely to remain subdued. However insurer estimated UK Risk and Savings markets which were depressed in 2009 are expected to rebound.

Man Group surged 5.2% to 239.6 pence on takeover speculation.

Mulberry Group plc dropped 1.7% to 165.00 pence after the luxury handbags and leather goods maker said that sales over holiday period have been in line with management expectations.

Rexam Plc decreased 0.8% to 279.70 pence after the can maker said free cash inflow of £290 million compared with outflow of £128 million in 2008. Sales increased 5% on favorable foreign exchange translation.

Thorntons Plc gained 6.8% to 109.00 pence after the chocolate specialist reported revenues declined 0.7% to £127.4 million and said that profitability increased.

TT electronics plc rose 4.1% to 88.50 pence after the company said it has agreed to sell the entire issued share capital of its wholly owned South African subsidiary, Wire Systems Technology (Pty) Ltd to First Strut (Pty) Limited.

Umeco plc fell 5.8% to 305.00 pence after the aerospace supplies group said sales declined in the four months period to January from the period a year ago.

The order book at the end of January increased to £225.1 million compared to £213.0 million at the end of September.

WS Atkins plc the design and engineering consultancy group rose 1.9% to 573.50 pence.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 92 increased, 10 declined and None were unchanged.

Scottish and Southern Energy Plc decliners in the FTSE 100 index with a loss of 2.87% followed by losses in BP Plc of 2.65%, in Rexam Plc of 1.77%, in Smith & Nephew Plc of 1.43%, and in BT Group Plc of 1.26%.

MAN Group Plc led gainers in the FTSE 100 index with a rise of 5.18% followed by increase in Wolseley Plc of 4.86%, in Eurasian Natural Resources Corporation Plc of 4.09%, in British Airways Plc of 3.61%, and in Kingfisher Plc of 3.34%.