RAMSEY CROOKALL & CO

MORNING REPORT 24 February 2011

Shares are down for the fourth day in a row as the Libyan crisis continues to cast a shadow. Today’s stream of company results has been given a mixed reception.

Worries over the ongoing crisis in Libya – and concerns that other oil rich nations could be affected by protests – continue to drive the oil price higher. Brent crude rose above $119 a barrel. British Airways owner IAG is down again, taking its losses for the week to 10%.

Taxpayer-owned Royal Bank of Scotland leads the fallers in the FTSE 100 after it stayed in the red last year, though lower impairment charges meant the deficit was sharply reduced. Pre-tax losses came in at £239m in 2010, down from £1.93bn, with the bank posting a small profit in the last three months of the year.

Elsewhere, RSA Insurance Group’s net written premiums rose 11% (8% at constant exchange rates) to £7,455m in 2010 from £6,737m in 2009, with profitable top line growth seen in all regions. The combined operating ratio deteriorated to 96.4% from 94.6% in 2009, with 3.5 points of the ratio being attributed to bigger than usual losses related to adverse weather conditions. Profit before tax eased 14% to £474m from £554m the year before.

Profits soared at British Gas owner Centrica in the year to 31 December as the cold weather towards the end of last year forced homeowners to crank up the heating. Pre-tax profits climbed to £2.8bn from £996bn the previous year on revenues that rose to £22.4bn from £22bn. The results have failed to impress the market though and the shares are down.

Finally, British American Tobacco, the maker of Lucky Strike cigarettes, is lower today even after it squeezed out a higher profit in the 2010 as price increases and emerging market growth helped it offset sluggishness in some markets. Pre-tax profits rose to £4.39bn from £4.08bn the previous year on revenues that rose to £43.86bn from £40.7bn. . THE FTSE 100 AT 9.30 IS DOWN 38 @ 5885

THE DOW JONES CLOSED DOWN 107 @ 12,105

THE NASDAQ COMP CLOSED DOWN 33 @ 2722

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