RAMSEY CROOKALL & CO
31 MARCH 2011 MIDDAY REPORT
The FTSE 100 is trading slightly lower, with Corporate News offering
some support. However, investors are wary ahead of announcements later
this afternoon regarding the results of stress tests on the Irish Banks.
Tour operator TUI Travel is higher after saying underlying trading has
been “satisfactory” during the last six months. Like Thomas Cook on
Tuesday, it has not changed its estimate of the cost of trouble in
North Africa. Uprisings in Egypt and Tunisia are expected to have cost
the company between £25m and £30m in the second quarter, as flagged
last month.
London Stock Exchange (LSE) moves ahead after saying it grew average
daily value traded in UK equities by 2% over the past year and is
finishing the period on a strong note.
But there is more bad news for the retail sector. Following electrical
specialist Dixons Retail’s profit warning yesterday, Mothercare falls
back after the babycare retailer saw margins squeezed in the quarter to
26 March after slashing prices to clear its autumn and winter stock amid
a weak consumer environment. Total sales were up by 10.2% from the same
period the previous year, with international operations leading the way.
Sales in Britain were up by 4.7%, though they were down by 2.4% on a
like-for-like basis, which excludes the wholesale business.
Contract caterer Compass’s good start to the new financial year has continued
through the six-month period, leaving it comfortable with forecasts for the
full-year. In a statement ahead of interims on 18 May, the firm said constant
currency revenue growth, including the impact of acquisitions, was about
9.5%, with organic growth at 5.5%. There’s also been a “slight” increase in
like for like revenue against the weaker comparatives of the first half of
2010. Margin has improved by about 20 basis points.
THE FTSE 100 AT NOON IS DOWN 9 @ 5939
THE DOW JONES CLOSED UP 71 @ 12,350
THE NASDAQ COMP CLOSED UP 20 @ 2776
Exchange Rates
GBP – USD 1.6121
GBP - EURO 1.1366
Thursday 31st, March 2011 12:10pm.
