RAMSEY CROOKALL & CO

MIDDAY REPORT

28 JULY 2010

London’s blue chips have turned south after a mixed reception to some of the company announcements.

Banks are in demand after a report yesterday that new capital requirements might be less onerous than previously expected. Royal Bank of Scotland are up ?p at 51 p.

Centrica is heading for more controversy over energy prices after the British Gas owner’s underlying interim profits jumped 65%. Earnings in the half-year to June rose to ?886 million from ?537 million on revenues of ?11.7 billion.

BG delivered a ‘good’ set of second quarter results with revenue up 18%. Operating profit rose 6% to $1.53 billion on revenue up to $4.13 billion from $3.49 billion.

British American Tobacco has increased its interim dividend from 27.9p to 33.2p and said it expects another year of good earnings growth. Pre tax profit rose to ?2,279 million up from ?2,123 million in the first half of 2009.

Contract caterer Compass has increased its forecast for sales growth this year to 2.5% after an uptick in new business and an improvement in contract retention. The shares are trading down 14p at 543p.



THE  FTSE  AT 1.00 IS                   DOWN      9     @     5356

THE DOW JONES CLOSED                          UP 12    @     10,537

THE NASDAQ COMP  CLOSED                       UP 8     @    2288



Exchange Rates

GBP – USD                                      1. 56

GBP – EUR                                      1. 20