RAMSEY CROOKALL & CO

MORNING REPORT

22 JULY 2010

London’s top stocks opened slightly lower on Thursday following falls on Wall Street overnight.

DIY retailer Kingfisher which owns the B&Q chain in the UK dropped after it reported a small drop in like for like sales in the 10 weeks to 10 July, but said half year profits remain on track. Like for like sales were down 0.8%, with total sales up 0.3% in constant currencies.

Imperial Tobacco said cigarette volumes for the nine months to June were down 4.3% as a result of market declines in Spain, USA, Russia and Ukraine being only partly offset by gains in Central Europe. Overall, the group’s financial performance for the financial year to 30 September remains in line with expectations.

The World Cup was a mixed blessing for pub group Mitchells & Butlers, which saw like for like sales rise by 1.2% from the same period a year ago in the nine weeks to 17 July, but blames the football for slower food sales growth.

Sports Direct, owner of Sports World stores and Slazenger and Dunlop brands, posted a 50% rise in annual pre tax profit, in line with expectations, and predicted more growth in 2010-2011.

Tate & Lyle said it has made a sound start to the year and continues to anticipate progress in the current full year. However, despite some improvement in demand, industrial starch margins are expected to remain at lower levels and the group continues to see little near term improvement in US ethanol markets.

Elsewhere, Spanish bank Santander is reportedly planning a listing of its UK operations on the London Stock Exchange in a move that could raise up to ?3 billion. The Financial Times says the lender could list on the main market as soon as this autumn to fund further expansion.

THE FTSE AT 11.15 UP 11 @ 5255

THE DOW JONES CLOSED DOWN 109 @ 10,120

THE NASDAQ COMP CLOSED DOWN 35 @ 2187

Exchange Rates

GBP – USD 1. 5280

GBP – EUR 1. 1900