UK Retail Sales Lift Stocks; Next, Clinton Up

123jump.com Staff
25 Mar, 2010
New York City

UK stocks closed higher after February retail sales were ahead of expectations and surged the most in seventeen months. Thomas Cook gained on higher summer bookings. Next Plc soared on better than expected sales and earnings. Clinton Cards Plc forecasted higher annual sales.

[R]4:00 PM London, 11:00 AM New York – UK stocks closed higher after February retail sales were ahead of expectations and surged the most in seventeen months. Thomas Cook gained on higher summer bookings. Next Plc soared on better than expected sales and earnings. Clinton Cards Plc forecasted higher annual sales.[/R]

UK stocks edged higher after retail sales increased, Next Plc reported better than expected earnings and Thomas Cook made positive comments.

Retail sales in February increased 2.1% from January and surged 3.5% from a year ago month. Predominantly food stores sales decreased 0.5%. The largest increase was non-specialized stores at 9.7%. Total sales volume from December 2009 to February 2010 increased 1.6%.

In London FTSE 100 Index closed higher 49.77 or 0.9% to 5,727.65 and the pound edged higher to close at $1.493 and edged higher to close at €1.118.

Independent News & Media Plc agreed to sell Independent and Independent Sunday to Russian oligarch Alexander Lebedev for one pound. INM will pay Lebedev £9.25 million over the next ten months to transfer future debt and liabilities.

Gainers & Losers

3i Group plc rose 0.8% to 294.60 pence after the private equity group agreed to acquire 20% stake in Refresco shares.

Clinton Cards PLC gained 5.4% to 48.00 pence after the greeting cards retailer said first half sales rose 21% to £226.1 million from £187.3 million a year ago. Net profit for the first half rose 62% to £14.1 million or 6.83 pence per diluted share compared to net profit of £8.7 million or 4.22 pence per share a year.

The Evolution Group Plc fell 0.2% to 119.75 pence after the investment bank said 2009 total income rose 102.5% to £129.4 million from £63.9 million a year ago. Net profit for the year was £7.3 million compared to net loss of £12.8 million a year.

Kingfisher plc decreased 1.0% to 226.00 pence an international home improvement retailer said 2009 sales rose 5% to £10.5 billion from £10.0 billion a year ago. Net profit for the year rose 86% to £388 million or 16.4 pence per diluted share compared to net profit of £209 million or 8.9 pence per share a year.

Lupus Capital plc rose 1.4% to 70.00 pence an industrial buy-out group said 2009 sales rose 21% to £241.6 million from £266.6 million a year ago. Net profit for the year fell 94% to £413,000 compared to net profit of £6.52 million a year.

Next plc rose 5.1% to 2,176.00 pence after the fashion retailer said 2009 sales rose 4% to £3.41 billion from £3.27 billion a year ago. Net profit for the year rose 20.4% to £364.1 million or 177.4 pence per diluted share compared to net profit of £302.4 million or 155.7 pence per share a year.

Office2Office plc rose 1.3% to 156.00 pence after the managed procurement and business critical services provider said 2009 sales rose 3.6% to £187.5 million from £181.0 million a year ago. Net profit for the year fell 7% to £6.14 million or 17.1 pence per diluted share compared to net profit of £6.61 million or 18.5 pence per share a year.

Petropavlovsk plc added 1.7% to 1,170.00 pence after the gold miner said 2009 sales rose 24% to $472.3 million from $381.7 million a year ago. Net profit for the year rose 551% to $143.2 million or $0.96 per diluted share compared to net profit of $22.0 million or $0.27 per share a year.

Premier Oil Plc climbed 3.0% to 1,219.00 pence an oil and gas explorer said 2009 sales fell 5% to $621.1 million from $655.2 million a year ago. Net profit for the year rose 15% to $113.0 million or 103.9 cents per diluted share compared to net profit of $98.3 million or 98.2 cents per share a year.

PV Crystalox Solar PLC dropped 1.0% to 49.25 pence after provider of photovoltaic silicon wafers said 2009 revenues fell 13.4% to €237.3 million from €274.1 million a year ago. Net profit for the year fell 71.4% to €29.55 million or 7.2 cents per diluted share compared to net profit of €103.2 million or 25.1 cents per share a year ago.

Sportech PLC dropped 4.5% to 52.50 pence after the operator of football pools and associated games said 2009 revenues fell 10% to £64.6 million from £71.8 million a year ago. Net loss for the year was £12.3 million or 12.2 pence per diluted share compared to net profit of £5.1 million or 5.1 pence per share a year.

Ted Baker PLC rose 2.6% to 472.00 pence after the designer fashion group said 2009 sales rose 7.2% to £163.6 million from £152.7 million a year ago. Net profit for the year rose 8% to £13.6 million compared to net profit of £12.6 million a year.

Thomas Cook Group plc climbed 2.4% to 262.40 pence after the tour operator made positive comments and said that bookings in the last four weeks are up 30%.

United Utilities Group PLC advanced 1.0% to 547.00 pence after the water company estimated higher operating profit but did not indicate the size of the increase.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 88 increased, 14 declined and none were unchanged.

Old Mutual Plc decliners in the FTSE 100 index with a loss of 1.76% followed by losses in Eurasian Natural Resources Corporation Plc of 1.33%, in Vodafone Group Plc of 1.31%, in Kingfisher Plc of 1.27%, and in Admiral Group Plc of 1.13%.

Thomas Cook Group Plc led gainers in the FTSE 100 index with a rise of 6.17% followed by increase in Next Plc of 5.22%, in Cairn Energy Plc of 3.69%, in Scottish and Southern Energy Plc of 3.50%, and in Burberry Group Plc of 3.43%.