RAMSEY CROOKALL & CO
23 MARCH 2011 MORNING REPORT
Budget days are normally quiet, but supermarket giant J Sainsbury's slightly disappointing
trading update has unsettled the mood. Caution ahead of today's speech by the Chancellor
will also be keeping some on the sidelines.
Supermarket giant Sainsbury’s grew like for like sales by slightly less than expected during
the fourth quarter following a widely-predicted slowdown since Christmas. Like for like sales
excluding fuel but including VAT rose 1% in the 10 weeks to 19 March compared with 3.6% in
the third quarter and the 1.5% predicted by analysts at Nomura.
Britain’s number three grocer increased like for like sales by 4.2% including fuel, giving
a full-year increase of 4.7%. Total sales for the quarter increased 6.8% and 3.5% without fuel.
“We expect the consumer environment to remain tough, with our customers facing fuel price
inflation, uncertain employment prospects and government spending cuts,” King said. Tesco and
Wm Morrison are lower in sympathy.
Elsewhere, property giant Hammerson has splashed out over £200m to snap up the Centrale shopping
centre in Croydon plus five others as it executes its plan to invest into areas with potential.
Medical devices and airport scanners maker Smiths Group has reported a healthy increase in
half-year profits, up around a quarter. The company grew profit before tax for the six months
to 29 January to £189m from £148m a year ago, and headline profit, which excludes lots of
one-off items, by 25% to £224m.
Finally, cake and bread maker Finsbury Food reported a 3% rise in half year pre-tax profit helped
by a strong performance from its Bread and 'Free From' and a return to profit at its cake division.
Pre-tax profit rose to £1.9m for the six months ended 1 January 2011 from £1.8m before. Group
revenue increased to £87.8m from £82.9m.
THE FTSE 100 AT 9.50 IS UP 25 @ 5787
THE DOW JONES CLOSED DOWN 17 @ 12,018
THE NASDAQ COMP CLOSED DOWN 4 @ 2257
Exchange Rates
GBP – USD 1.6305
GBP - EURO 1.1495
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