RAMSEY CROOKALL & CO

MIDDAY REPORT 8 February 2011

As expected, London has made a slow start, with the leading index giving back a handful of points after closing at its highest in almost three weeks last night.

In company news, BG Group grew fourth quarter profits by 3% thanks to higher energy prices and a lower exploration charge. Operating profit rose to $1.80bn in the last three months of 2010 from $1.76bn the year before.

Elsewhere, mining giant Xstrata enjoyed a sharp surge in profitability in 2010, as the benefits of 2009’s restructuring activities kicked in and production volumes soared. Profit before tax rose to $7.11bn, excluding exceptional items, from $1.87bn.

The drilling results at Premier Oil’s Catcher North Well in the UK Central North Sea have indicated an oil pay at the lower end of the company’s expectations and the shares have drifted over 100p on the news.

The political turmoil in Egypt and Tunisia will knock £20m from Thomas Cook's profits this quarter, the travel group warned, disrupting what had been a good start to the year. Revenue in the first quarter rose by 7% to £1.81bn reflecting increased volumes and improved product mix, while the traditional seasonal loss fell to £37.3m.

Finally, McBride, maker of own label products for retailers, met forecasts with a 29.6% drop in first half profit as it battles with rising raw materials prices and a difficult retail environment, particularly in the UK. The group, which supplies supermarkets such as France's Carrefour and Tesco, said revenue for the six months ended 31 December 2010 fell 1% at £407.9m from £412.4m a year earlier. Pre-tax profit fell to £15.5m from £22.5m.

THE FTSE 100 AT 12.10 IS DOWN 14 @ 6037 THE DOW JONES CLOSED UP 69 @ 12,161

THE NASDAQ COMP CLOSED UP 14 @ 2783

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