RAMSEY CROOKALL & CO EVENING REPORT

16 SEPTEMBER 2010

The FTSE 100 fell a bit deeper into the red over the lunch time session as a half-hearted rally following disappointing retail sales figures fizzled out.

Kingfisher have closed marginally higher after interim profits from the DIY retailer were at the top end of the range of expectations as the group achieved strong growth in each of its three main operating divisions. The B&Q owner said adjusted pre-tax profit for the 26 weeks ended 31 July 2010 rose 22.9% to £354m from £288m the year before, and was above the median forecast of £342m.

Chief executive Ian Cheshire did sound a cautious note though, saying that the immediate outlook for consumer spending is ‘fragile’. This was confirmed with an unexpected fall in retail sales in August announced by the Office of National Statistics this morning. Sales excluding cars and petrol fell by 0.5% on the month.

The May to July period was good for consumer electricals retailer Kesa, also higher today, as the company cashed in on the World Cup. Revenue grew 4.3% on a like for like basis from a year earlier, above market expectations, with the company doing a roaring trade in TVs, including the 3D variety. French unit Darty ramped up sales in local currency by 7.8%, or 5.1% like for like, while Comet made it 6.3% and 4.3% respectively.

Continuing the retail theme, homewares seller Dunelm saw like for like sales grow 8.0% in the 52 weeks to 3 July 2010. Profit before tax improved to £76.8m from £53.5m the year before, which covered a 53 week period. The company said it had made a good start to the current financial year but the market was disappointed to learn that chief executive Will Adderley will be stepping down after 15 years in the hot seat.

Finally, cash and carry wholesale group Booker revealed a 6.1% increase in second quarter sales, helped by the World Cup and strong demand for fresh fruit and vegetables. For the 12 weeks to 10 September like-for-like sales rose by 5.9%. Fruit and vegetable sales soared 46%. Meat sales increased 10%.

THE FTSE 100 CLOSED DOWN 1 5 @ 5540

THE DOW JONES AT 4.30 IS DOWN 17 @ 10,555

THE NASDAQ COMP AT 4.30 IS DOWN 4 @ 2296

Exchange Rates

GBP – USD 1. 56 GBP – EUR 1. 194