UK Production Declines; Tullett Surges on Talks

Mayank Mehta
10 Mar, 2010
New York City

Factory production index in January declined, a fall for the first time in five months. Tullett Prebon surged on buyout talks. F&C Asset Management swings to net profit in 2009. Laird Plc dropped 9% on a yearly loss.

[R]4:00 PM London, 11:00 AM New York – Factory production index in January declined, a fall for the first time in five months. Tullett Prebon surged on buyout talks. F&C Asset Management swings to net profit in 2009. Laird Plc dropped 9% on a yearly loss.[/R]

UK stocks closed higher as global markets turned optimistic and investors focused on earnings and sustained bond offerings by large companies in the U.S. and Europe. January production decline surprised most economists.

In London FTSE 100 Index closed higher 38.27 or 0.68% to 5,640.57 and the pound edged lower to close at $1.492 and edged lower to close at €1.095.

Overall production output in January fell by 1.5% from a year ago. Output in mining & quarrying declined by 8.8%, energy supply industry fell 5.2%. Manufacturing output increased 0.4% in January from a year ago month.

The broker Tullett Prebon Plc soared 26% after the company confirmed that it is in a buyout talks that may or may not lead to a deal.


Gainers & Losers

Costain Group PLC increased 3.1% to 24.75 pence and the engineering and construction group said 2009 revenues rose 6.5% to £1.06 billion from £996.0 million a year ago. Net profit for the year fell 20% to £14.6 million or 2.3 pence per diluted share compared to net profit of £18.2 million or 2.9 pence per share a year ago.

Chime Communications plc declined 2.7% to 210.00 pence after the marketing services group said 2009 revenues rose 8.5% to £300.9 million from £277.4 million a year ago. Net profit for the year rose 16% to £12.5 million compared to net profit of £10.8 million a year ago.

F&C Asset Management surged 5.7% to 67 pence after it reported net income of £15.9 million compared to a loss of £52.5 million.

IG Group Holdings plc fell 1.2% to 409.80 pence after the spread bet firm said quarterly revenues increased 11% to £69 million compared to £62 million in the corresponding quarter a year ago.

Inchcape plc decreased 5% to 28.03 pence after the copper producer said 2009 revenues fell 11% to £5.58 billion from £6.26 billion a year ago. Net profit for the year rose 79% to £92.0 million or 2.3 pence per diluted share compared to net profit of £51.4 million or 1.9 pence per share a year ago.

Interserve Plc gained 4.3% to 216.40 pence after the services, maintenance and building group won contracts in the UK and through its Middle East associates worth over £200 million in aggregate.

The contracts include support services contract with the UAE armed forces, three construction contracts in Qatar worth more than £90 million and the finalization of a £70 million project to design and construct storm-water tunnels in Preston as part of the KMI Plus joint venture.

Laird Plc declined 8.7% to 129.60 pence after the electronic shield for mobile phones maker said 2009 revenues fell 17% to £528.8 million from £635.3 million a year ago. Net loss for the year was £3.5 million or 1.7 pence per diluted share compared to net profit of £14.3 million or 7.0 pence per share a year ago.

Melrose PLC increased 6.6% to 206.00 pence after the engineering conglomerate reported full year revenue of £1,298.5 million from £895.3 million.

Petrofac Ltd surged 4% to 1,162 pence after a rating upgrade by RBS.

Standard Life plc fell 0.2% to 203.60 pence after the life insurer said 2009 gross earned premiums were flat at £3.56 billion. Net profit for the year rose 113% to £213 million or 7.8 pence per diluted share compared to net profit of £100 million or 6.9 pence per share a year ago.

Tullow Oil plc rose 0.08% to 1,282.00 pence an independent oil and gas exploration and production reported financial results for 2009 are in line with market expectations and down compared with 2008.

Tullett Prebon plc surged 26% to 390 pence an inter-dealer broker announced that the board of the company notes recent press speculation regarding the company and confirms that it is in preliminary discussions with a third party which may or may not lead to an offer being made for the entire issued share capital of the company.

Yule Catto & Co plc rose 1.1% to 175.00 pence after the chemicals company said 2009 revenues fell 10% to £543.4 million from £602.2 million a year ago. Net profit for the year rose 19% to £31.1 million or compared to net profit of 20.8 pence per diluted share £26.1 million or 17.8 pence per share a year ago.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 75 increased, 26 declined and 1 were unchanged.

British American Tobacco Plc decliners in the FTSE 100 index with a loss of 3.10% followed by losses in Schroders Plc of 2.68%, in Schroders Plc of 2.38%, in TUI Travel Plc of 1.91%, and in Admiral Group Plc of 1.51%.

ICAP Plc led gainers in the FTSE 100 index with a rise of 4.46% followed by increase in Petrofac Limited of 4.22%, in Lloyds Banking Group Plc of 3.91%, in British Airways Plc of 3.67%, and in The Royal Bank of Scotland Group Plc of 3.64%.