London: Wolseley, Regus, Shell and ICAP

Mayank Mehta
22 Mar, 2010
New York City

UK benchmark index and commodities traded sideways. Royal Dutch Shell and Petro China agree to acquire Australia based Arrow Energy Ltd. ICAP Plc will shut down its cash equities trading business. Wolseley Plc may shut businesses that fail to perform.

[R]4:00 PM London, 11:00 AM New York – UK benchmark index and commodities traded sideways. Royal Dutch Shell and Petro China agree to acquire Australia based Arrow Energy Ltd. ICAP Plc will shut down its cash equities trading business. Wolseley Plc may shut businesses that fail to perform.[/R]

UK stocks traded lower and commodities traded mixed. Royal Dutch Shell and Petro China joint venture agreed to acquire coal-seam gas explorer Arrow Energy Ltd for A$3.5 billion.

In London FTSE 100 Index closed lower 11.54 or 0.20% to 5,638.58 and the pound edged lower to close at $1.498 and edged higher to close at €1.112.

The euro declined as European leaders struggle to find a financial assistance structure for Greece. German Chancellor Angela Merkel and EC President Jose Barroso sent conflicting signals. Greece may be forced to seek assistance from the International Monetary Fund to tide over its 20 billion euro bond offering in less than two months.

Gainers & Losers

A.G. BARR Plc added 1.6% to 915.00 pence after the soft drinks group said 2009 revenues rose 18.7% to £201.4 million to £169.7 million a year ago. Net profit for the year rose 5% to £17.9 million or 46.49 pence per diluted share compared to net profit of £17.1 million or 44.08 per share a year ago.

DataCash Group plc closed unchanged at 183.00 pence after the payment processing solutions provider said 2009 revenues rose 32% to £36.9 million to £28.0 million a year ago. Net profit for the year rose 95% to £5.15 million or 5.66 pence per diluted share compared to net profit of £2.64 million or 2.86 pence per share a year ago.

Forth Ports plc fell 0.5% to 1,382.00 pence after the provider of handling and logistic-related services said 2009 revenues fell 6.5% to £173.9 million to £185.9 million a year ago. Net profit for the year was £26.5 million or 57.6 pence per diluted share compared to net loss of £49.2 million or 107.8 pence per share a year ago.

Gulfsands Petroleum plc rose 2.9% to 327.50 pence after the oil and gas explorer with activities in Syria, Iraq, and the U.S reached an agreement to acquire working interest positions in two exploration permits in Tunisia and one exploration permit in Southern Italy from AuDAX Resources Ltd.

ICAP plc fell 2.7% to 380.70 pence after the interdealer broker said it will close its full service agency cash equities business. The company will take a one-time charge of £51 million and will continue to build its brokerage business in the U.S. and in Brazil. The broker will report £25 million charge for the discontinued business for the year ending in March.

Kentz Corporation Limited rose 0.2% to 227.00 pence an engineering specialist solutions provider said 2009 revenues rose 9.5% to $704.7 million to $643.4 million a year ago. Net profit for the 2009 rose 28% to $30.8 million or 26.35 cents per diluted share compared to net profit of $24.1 million or 21.00 cents per share a year ago.

Regus plc S.A increased 4.3% to 90.95 pence after the provider of global office outsourcing services said 2009 revenues fell 2% to £1.06 billion to £1.08 billion a year ago. Net profit for the year fell 41% to £67.0 million or 7.0 pence per diluted share compared to net profit of £113.9 million or 11.8 pence per share a year ago.

Smiths Group plc rose 1.2% to 1,114.00 pence after the division of technology firm today announces the $185 million purchase of a leading designer and manufacturer of probe technology for use in industrial and semiconducting testing, and high performance connector applications.

Wolseley plc dropped 1.7% to 1,592.00 pence after the plumbing products and building materials supplier said first half revenues fell 15% to £6.33 billion to £7.46 billion a year ago. Net loss for was £220 million or 78.1 pence per diluted share compared to net loss of £777 million or 429.9 pence per share a year ago.

Chief executive Ian Meankins said on a conference call that the company is reviewing 19 units that generate 19% of 2009 revenues and 5% of profit and may “exit the business” if they “fail to perform.” The decision could take as long as two years.

Zenergy Power plc fell 0.8% to 113.00 pence after the superconductor specialist said 2009 revenues rose 20% to €2.44 million to €2.03 million a year ago. Net loss for the year was €8.48 million or €0.17 per diluted share compared to net loss of €5.27 million or €0.12 per share a year ago.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 36 increased, 66 declined and none were unchanged.

ICAP Plc decliners in the FTSE 100 index with a loss of 2.71% followed by losses in The British Land Company Plc of 2.32%, in Tullow Oil Plc of 2.22%, in Wolseley Plc of 2.16%, and in BG Broup Plc of 1.75%.

Investec Plc led gainers in the FTSE 100 index with a rise of 2.32% followed by increase in Smiths Group Plc of 1.91%, in Smith & Nephew Plc of 1.57%, in Lloyds Banking Group Plc of 1.45%, and in British American Tobacco Plc of 1.34%.