LONDON Market Open Report

London open: Markets start well

Date: Thursday 20 May 2010

London’s leading shares are posting good gains following the heavy sell-off yesterday.

Gas and electricity pipeline grid operator National Grid is a big faller though. The group announced a fully underwritten rights issue to raise Ł3.2bn as it posted a 57% rise in full year profits. Pre-tax profit for the year rose to Ł2.19bn from Ł1.39bn before thanks to lower operating costs. Revenue fell to Ł13.98bn from Ł15.62bn before,

South African brewer SABMiller is also down despite reporting improved full-year figures with Latin America driving growth in the company’s profits. EBITDA increased to $4,381m in the 12 months to 31 March from $4,129m on revenue of $26,350m, up from $25,302m.

Oil explorer Cairn Energy is higher as it prepares a four well exploration programme in Greenland for this summer. The group also said the average gross field production for the first quarter totalled 74,486 barrels of oil per day. The average realised price per barrel of oil equivalent for Q1 2010 is $62.88.

International specialist bank and asset manager Investec announced improved earnings and substantially higher assets under management for the year to 31 March. Operating profit before tax rose 8.9% to Ł432.3m from Ł396.8m the year before while earnings attributable to shareholders climbed 15% to Ł309.7m from Ł269.2m.

Oil giant BP said on Thursday that it is diverting about 3,000 barrels of oil a day into a drill-ship via a mile-long tube inserted into the broken MC252 oil well following the Deepwater Horizon disaster in the Gulf of Mexico. The group has also skimmed some 187,000 barrels (7.8 million gallons) of oily liquid from the surface of the water.

Pubs operator Marston’s reported a rise in first half profits and said it was confident of meeting expectations for the full year. Profit before taxation and exceptional items was Ł27.8m in the 26 weeks ended 3 April, 0.4% ahead of last year. Revenue also rose slightly to Ł309.2m from Ł307.5m last time.

Cash and carry wholesaler Booker reported a better than expected 21% rise in annual pre-tax profit and said it was expanding its presence in India.

Waste management firm Shanks saw profits fall in a “challenging” year but still upped dividends by 76%.

Kids’ clothes and equipment retailer Mothercare said underlying full year pre-tax profit was little changed but international sales saw an impressive 21% rise.