RAMSEY CROOKALL & CO MORNING REPORT

16 SEPTEMBER 2010

London is seeking direction in the early going despite a welter of company results for the investment community to digest.

Today has been termed “retail Thursday” in some quarters with a number of the big names from the edge of town trading estates reporting.

Interim profits from DIY retailer Kingfisher were at the top end of the range of expectations as the group achieved strong growth in each of its three main operating divisions. 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. The shares are trading 6p higher at 225p.

The May to July period was also good for consumer electricals retailer Kesa 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. The shares are 5p lower at 391p.

And 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.

THE FTSE 100 AT 10.30 IS DOWN 3 @ 5551

THE DOW JONES CLOSED UP 46 @ 10,572

THE NASDAQ COMP CLOSED UP 11 @ 2301

Exchange Rates

GBP – USD 1. 56 GBP – EUR 1. 193