UK Stocks Down; RBS, Centrica, GKN Up

Mayank Mehta
25 Feb, 2010
New York City

British American Tobacco profit growth slows. Centrica signs agreement to acquire equity interests in Trinidadian gas blocks, establishing first producing LNG position. Capita Group Plc net income rises 14%. Gammon awarded

[R]4:00 PM London, 11:00 AM New York – British American Tobacco profit growth slows. Centrica signs agreement to acquire equity interests in Trinidadian gas blocks, establishing first producing LNG position. Capita Group Plc net income rises 14%. Gammon awarded £195 million highway widening contract in Hong Kong.[/R]

UK stocks closed lower on the weakness in mining and energy sectors.

Royal Bank of Scotland surged after the lender reported smaller than estimated loss, Capital Group declined on weak outlook and British American Tobacco net advanced 13%.

In London FTSE 100 Index closed lower 64.69 or 1.21% to 5,278.23 and the pound edged lower to close at $1.529 and edged lower to close at €1.132.

Gainers & Losers

Ashmore Group plc rose 0.2% to 231.00 pence an emerging markets fund specialist said first half revenues rose 42% to £148.8 million from £104.5 million a year ago. Net profit for the first half rose 47% to £85.5 million or 11.7 pence per diluted share compared to net profit of £58.2 million or 7.9 pence per share a year ago.

Balfour Beatty plc rose 1.5% to 273.30 pence after the infrastructure company’s Hong Kong subsidiary Gammon Construction Limited, was awarded HK$2.4 billion or £195 million contract for the widening of the Tolo and Fanling Highways in Hong Kong.

British American Tobacco plc fell 1.8% to 2,190.00 pence after the cigarette maker said fiscal 2009 revenues rose 17% to £14.2 billion from £12.1 billion a year ago. Net profit for the fiscal 2009 rose 10% to £2.71 billion or 136.3 pence per diluted share compared to net profit of £2.46 billion or 122.5 pence per share a year ago.

BBA Aviation plc rose 0.7% to 169.30 pence an aviation services and systems support company said fiscal 2009 revenues fell 7% to £1.08 billion from £1.16 billion a year ago. Net profit for the fiscal 2009 fell 24% to £47.9 million or 11.3 pence per diluted share compared to net profit of £62.8 million or 15.2 pence per share a year ago.

Bodycote plc decreased 4.3% to 177.30 pence an engineering firm said fiscal 2009 revenues fell 21% to £435.4 million from £551.8 million a year ago. Net loss for the fiscal 2009 was £50.1 million or 27.0 pence per diluted share compared to net profit of £149.8 million or 48.1 pence per share a year ago.

Capita Group Plc fell 1.6% to 731.50 pence an outsourcing firm said fiscal 2009 revenues rose 12.5% to £2.7 billion from £2.4 billion a year ago. Net profit for the fiscal 2009 rose 14% to £188.9 million or 30.50 pence per diluted share compared to net profit of £165.8 million or 27.01 pence per share a year ago.

Centrica plc advanced 2.3% to 278.50 pence an integrated energy company said fiscal 2009 revenues rose 5% to £21.96 billion from £20.87 billion a year ago. Net profit for the fiscal 2009 was £844 million or 16.4 pence per diluted share compared to net loss of £137 million or 3.3 pence per share a year ago.

Dunelm Group plc added 3.7% to 388.90 pence after the specialist out-of-town homewares retailer said first half revenues rose 26% to £254.2 million from £201.8 million a year ago. Net profit for the first half rose 69% to £32.4 million or 15.9 pence per diluted share compared to net profit of £19.2 million or 9.5 pence per share a year ago.

Filtrona plc added 3.6% to 191.00 pence an international specialty plastic and fiber products supplier said fiscal 2009 revenues rose 3% to £444.0 million from £431.7 million a year ago. Net profit for the fiscal 2009 fell 66% to £11.8 million or 5.7 pence per diluted share compared to net profit of £35.0 million or 17.0 pence per share a year ago.

GKN plc rose 4.7% to 108.50 pence after the Automotive and aerospace engineer announces the outlook for company major markets is mainly positive although some uncertainty remains, particularly around second half demand.

Go-Ahead Group PLC rose 0.2% to 1,364.00 pence after the bus and rail operator said first half revenues fell 4.3% to £1.1 billion from £1.15 billion a year ago. Net loss for the first half was £0.7 million or 1.6 pence per diluted share compared to net loss of £18.4 million or 30.0 pence per share a year ago.

Hays plc fell 7.9% to 104.30 pence after the recruitment group said first half revenues rose 0.8% to £1.29 billion from £1.28 billion a year ago. Net loss for the first half was £8.0 million or 0.58 pence per diluted share compared to net profit of £70.6 million or 5.15 pence per share a year ago.

Hansard Global plc closed unchanged at 190.00 pence after the long-term savings provider said first half net profit fell 27.6% to £9.2 million or 6.7 pence per diluted share compared to net profit of £12.7 million or 9.3 pence per share a year ago.

Hunting PLC rose 0.9% to 608.50 pence an international energy services company said fiscal 2009 revenues fell 14% to £359.9 million from £418.5 million a year ago. Net profit for the year fell 91% to £28.7 million or 21.4 pence per diluted share compared to net profit of £304.2 million or 232.4 pence per share a year ago.

The Rank Group Plc gained 7.1% to 100.90 pence after the gaming and betting company said fiscal 2009 revenues rose 3.4% to £540.0 million from £522.2 million a year ago. Net profit for the year was £38.5 million or 9.9 pence per diluted share compared to net loss of £4.9 million or 1.3 pence per share a year ago.

Redrow plc rose 1.2% to 139.90 pence after the residential and property developer said first half revenues rose 25% to £187.2 million from £149.5 million a year ago. Net loss for the first half was £6.3 million or 2.6 pence per diluted share compared to net loss of £33.3 million or 15.9 pence per share a year ago.

The Royal Bank of Scotland Group plc added 5.1% to 11.13 pence and the part-nationalized bank reported a net loss of 3.6 billion compared to a loss of 24.3 billion from a year ago.

RSA Insurance Group plc fell 1.3% to 130.00 pence after the non-life insurer said fiscal 2009 net premiums rose 4.3% to £6.74 billion from £6.46 billion a year ago. Net profit for the fiscal 2009 fell 27% to £418 million or 12.1 pence per diluted share compared to net profit of £574 million or 17.0 pence per share a year ago.

SEGRO plc rose 0.2% to 325.70 pence after the industrial property group posted net rental income up 10.0% to £269.4 million from £244.9 million and adjusted profit before tax (recurring rental profits) up 16.8% to £104.3 million, reflecting inclusion of Brixton results for the last four months of the year.

Sinclair Pharma plc fell 1.6% to 30.49 pence an international specialty pharmaceutical company said first half revenues fell 32% to £11.0 million from £16.2 million a year ago. Net loss for the first half was £13.3 million or 12.9 pence per diluted share compared to net profit of £3.56 million or 3.8 pence per share a year ago.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 16 increased, 86 declined and none were unchanged.

Xstrata Plc decliners in the FTSE 100 index with a loss of 4.76% followed by losses in Capita Group Plc of 4.23%, in 3i Group Plc of 3.94%, in Wolseley Plc of 3.74%, and in Man Group Plc of 3.68%.

The Royal Bank of Scotland Group Plc led gainers in the FTSE 100 index with a rise of 6.23% followed by increase in TUI Travel Plc of 2.72%, in Lloyds Banking Group Plc of 2.64%, in Inmarsat Plc of 2.43%, and in Centrica Plc of 2.06%.