UK GDP Revised Up; Lloyds Loss Shrinks

123jump.com Staff
26 Feb, 2010
New York City

Serco Group 2009 net surged 31% and indicated larger order book. Rightmove Plc 2009 profit before tax falls and maintains dividend. Rolls-Royce announced

[R]4:00 PM London, 11:00 AM New York - Serco Group 2009 net surged 31% and indicated larger order book. Rightmove Plc 2009 profit before tax falls and maintains dividend. Rolls-Royce announced £154 million offer for ODIM ASA. Lloyds Banking Group declined smaller loss but bad loans increase.[/R]

UK stocks closed higher led by commodities and resource stocks. The revised estimate of the GDP indicated 0.3% expansion and index of service sector declined 1.4% in Dec.

UK GDP rose 0.3% in the fourth quarter of 2009, up from the 0.1% preliminary estimate on the upward revision to services and production. The GDP declined 3.3% compared to a year ago quarter.

Overall output of index of annual service sector fell by 1.4% in December from a year ago. The largest contribution to the decrease was business services and finance which fell 3.2%.

In London FTSE 100 Index closed higher 76.30 or 1.45% to 5,354.52 and the pound edged lower to close at $1.526 and edged lower to close at €1.126.

Lloyds Banking Group Plc reported new mortgage lending in 2009 declined to £35 billion from £78 billion in 2008 and overall mortgage loans at the end of Dec 2009 declined 3.7% from a year ago to £345.9 billion.

Bad loan loss increased to £24 billion of which £20 billion was attributed to HBOS loans.

Gainers & Losers

Brit Insurance Holdings Plc surged 304.8% to 789.00 pence after the company announces return on equity excluding the effect of foreign exchange on non-monetary items of 17.4% from 4.6% a year ago. Gross written premium of £1,696.4 million, a growth of 21.6% or 10.4% at constant currency

Carillion plc rose 1.1% to 276.00 pence after the support services company said its joint venture has finalized the financing for Southmead Hospital project to deliver the new 800-bed acute hospital, in which company will take a stake of £50 million.

The Davis Service Group Plc added 4.4% to 415.60 pence after the laundry and workwear company said 2009 revenues rose 2% to £970.9 million from £953.9 million a year ago. Net profit in the year rose 8% to £45.1 million or 26.6 pence per diluted share compared to net profit of £41.7 million or 24.5 pence per share a year ago.

Lloyds Banking Group plc fell 2.2% to 53.67 pence after the bank said 2009 net interest income rose 17% to £9.0 billion from £7.7 billion a year ago. Net profit for the year rose 266% to £2.83 billion or 7.5 pence per diluted share compared to net profit of £772 million or 6.6 pence per share a year ago.

On a combined businesses basis that includes the acquisition of HBOS and other subsidiaries the loss shrank 6% to £6.3 billion.

Rightmove Plc increased 9.3% to 654.00 pence after the residential property broker reported a slightly lower profit before tax for the full year on lower revenues.

Ricardo plc dropped 0.3% to 282.00 pence after the provider of engineering solutions and strategic consulting said first half revenues fell 11% to £81.0 million from £91.1 million a year ago. Net profit for the first half fell 42% to £3.0 million or 6.2 pence per diluted share compared to net profit of £5.2 million or 12.0 pence per share a year ago.

Rolls-Royce Group plc rose 1.5% to 547.00 pence after the engineering giant today announced that it has reached an agreement with the Board of ODIM ASA to launch a recommended cash offer for the 67% of the share capital not already held by the Group.

Serco Group plc increased 6.6% to 556.00 pence an essential services provider said 2009 revenues rose 27% to £3.97 billion from £3.12 billion a year ago. Net profit for the year rose 31% to £130.2 million or 26.45 pence per diluted share compared to net profit of £99.5 million or 20.18 pence per share a year ago.

William Hill Plc rose 1.2% to 197.00 pence after the betting and gaming company said 2009 revenues rose 3.5% to £997.9 million from £963.7 million a year ago. Net profit for the 2009 fell 74% to £61.1 million or 9.4 pence per diluted share compared to net profit of £234 million or 47.1 pence per share a year ago.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 90 increased, 12 declined and none were unchanged.

Lloyds Banking Group Plc decliners in the FTSE 100 index with a loss of 4.37% followed by losses in BT Group Plc of 2.21%, in The Royal Bank of Scotland Group Plc of 1.85%, in The British Land Company Plc of 1.03%, and in Hammerson Plc of 0.85%.

Serco Group Plc led gainers in the FTSE 100 index with a rise of 6.14% followed by increase in Aviva Plc of 4.64%, in Old Mutual Plc of 3.75%, in Anglo American Plc of 3.62%, and in Rolls-Royce Group Plc of 3.62%.