RAMSEY CROOKALL & CO

MORNING REPORT 18 February 2011

London has drifted lower in early dealing with attention switching to Bahrain and some mixed trading updates.

Miner Anglo American is down even though it doubled profits in 2010 and is merging its UK cement, aggregates and ready-mixed concrete business with French giant Lafarge.

Underlying earnings leapt to $4.98bn from $2.57bn in 2009 on revenue up 34% to $32.93bn. Profit before tax was up 171% to $10.93bn and underlying earnings per share of $4.13 was better than expected.

Elsewhere, Rentokil missed forecasts in 2010 as the cold weather in December added to the woes of its parcels delivery business City Link. Pre-tax profits tumbled from £60m to £15.3m after huge write-offs of £150.5m. The firm swung from profits of £26.8m to a loss of £55.7m in the last three months of year if all of the one-off charges of £110m are included.

More people are leaving their cars at home and taking the bus, according to Keith Ludeman, the chief executive of public transport group Go-Ahead. “Whilst rail remains difficult to predict, we now expect our full year operating profit across our rail and bus businesses to be higher than we previously anticipated and around the same as achieved last year (FY'10: £101.0m)." Ludeman said.

Finally, industrial engineer Charter improved during 2010, but weakness in Europe, where the company makes most of its money, held the business back. Profit before tax jumped 55% to £144.1m last year and by 18% to £148.2m before exceptional items. Revenue was up 3.6% at £1.72bn.

THE FTSE 100 AT 9.50 IS DOWN 17 @ 6069

THE DOW JONES CLOSED UP 29 @ 12,318

THE NASDAQ COMP CLOSED UP 6 @ 2831

Exchange Rates

GBP – USD 1.6213 GBP - EURO 1.1938 ??

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