RAMSEY CROOKALL & CO

MORNING REPORT 26 January 2011

London has made good ground this morning after a late rally on Wall Street sparked by a stronger than expected US consumer confidence report.

BG Group is the best performer after yet another discovery in the Santos Basin offshore Brazil. The latest strike is at Carioca North-East, located in a water depth of 2,151m, approximately 275km off the coast of São Paulo state. BG has a 30% stake.

Accountancy software group Sage’s first quarter was in line with expectations flagged at last month’s full-year numbers, keeping up the momentum in revenue growth seen in the second half.

Elsewhere, oil and gas firm Heritage is a strange market this morning, The shares have slumped even though it said it has found one of the largest gas fields in Iraq.

Water supplier United Utilities has been trading in line with expectations since October, with regulated revenue slightly higher than anticipated, though it will tail off in the second half.

Newsagent WH Smith’s high street stores were hit by tough trading conditions and the winter freeze, but profits met forecasts and gross margin is ahead of plan. In what the newspaper, books and stationery retailer called a “resilient” performance, total sales for the 21 weeks to 22 January fell 4% and were down 5% on a like for like basis.

Finally, a confident Cookson has forecast earnings growth of at least 10% for the next three years with dividends increasing in step. For the year to December just ended, the ceramics and electronics specialist expects revenue of around £2.5bn and trading profit of around £250m, adding that the group's performance in the current year, 2011, should be "well ahead of 2010".

THE FTSE 100 AT 9.45 IS UP 55 @ 5972

THE DOW JONES CLOSED DOWN 3 @ 11,977

THE NASDAQ COMP CLOSED UP 1 @ 2719

Exchange Rates

GBP – USD 1.58 GBP - EURO 1.15 ??

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